Understanding Platform-Based Digital Currencies

Article OPEN
Ben Fung ; Hanna Halaburda (2014)
  • Journal: Bank of Canada Review, volume 2,014, issue Spring, pages 12-20
  • Subject:
    acm: ComputingMilieux_COMPUTERSANDSOCIETY

Given technological advances and the widespread use of the Internet, various digital currencies have emerged. In most cases, Internet platforms such as Facebook and Amazon restrict the functionality of their digital currencies to enhance the business model and maximize their profits. While platform-based digital currencies could increase the efficiency of retail payments, they could also raise some important policy issues if they were to become widely used outside of the platform. Thus, it is important to closely monitor the evolution of these digital currencies.
  • References (7)

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    2 The records are public, but each user and each bitcoin are encrypted with unique identities.

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    Velde, F. R. 2013. “Bitcoin: A Primer.” Chicago Fed Letter. Number 317 (December). Federal Reserve Bank of Chicago.

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