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Private cryptocurrency versus central bank digital money: Evolutionary game theory modeling of the distribution of Seigniorage Shares
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Valiollah Fatemi ardakani1   , Fereydoon Rahnamay roodposhti *1 , Reza Radfar1 , Abbas Memarnejad1 |
| 1- faculty of management |
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Abstract: (840 Views) |
When the monopoly of money creation is removed and private money can be exchanged between people, the issue of Seigniorage share will arise, which is currently conceivable with the advent of cryptocurrencies. The question of the present study is that if we are in a situation where private cryptocurrencies along with money are common in the society with the state publisher, what share of the Seigniorage share will go to the government and what should be the best policy attitude of the central bank in this regard? To answer this question, we used the modeling of evolutionary game theory, the main feature of which is the evolution of a species (in the current research of money). To better approximate the model to reality, the research assumptions were verified by a questionnaire. The research findings show that the central bank's share of the money creation market will fluctuate in a range of about 60 to 80%, and the monetary policymaker's attitude towards cryptocurrencies ultimately determines the share of the private and public sectors in the money creation market. . The main policy implication of this research is that the policymaker's confrontation with the private cryptocurrency and the illegal attitude towards this issue will lead to an increase in the share of the private cryptocurrency in the money market.
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Full-Text [PDF 949 kb]
(628 Downloads)
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Type of Study: Theoretical Article |
Subject:
Monetary Policy, Central Banking, and the Supply of Money and Credit (E5)
Received: 2021/08/27 | Accepted: 2022/07/3 | Published: 2022/09/24
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