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The Impact of Digital Currency on the Financial System: Universal Decentralized Digital Currency, Is It Possible?

Kasarinlan: Philippine Journal of Third World Studies

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Field Value
 
Title The Impact of Digital Currency on the Financial System: Universal Decentralized Digital Currency, Is It Possible?
 
Creator Li, Dejun
Huang, Jianbao
Wang, Lingcong
 
Description With the continuous development of computer and blockchain technology, digital currency has gradually replaced some functions of legal tender. This paper investigated the impact and the feasibility of digital currency on the financial market. Combining the money demand theory of Karl Heinrich Marx and Milton Friedman respectively, we discussed the impact of electronic and cryptocurrencies on the amount of money in circulation. Then, through further empirical analysis, we conclude that in China, digital currency has a substitution effect on current deposits in the long term. Furthermore, the welfare effect level of different countries adopting different policies on digital currency is analyzed by using the local equilibrium model of tariff effect in small countries, and the policy choice of maximizing the total welfare level is discussed based on game theory. Finally, we put forward some suggestions on establishing the global financial supervision system.
 
Publisher SCHOLINK INC.
 
Contributor —
 
Date 2019-05-10
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.scholink.org/ojs/index.php/jepf/article/view/2006
10.22158/jepf.v5n2p203
 
Source Journal of Economics and Public Finance; Vol 5, No 2 (2019); p203
2377-1046
2377-1038
 
Language eng
 
Relation http://www.scholink.org/ojs/index.php/jepf/article/view/2006/2162
 
Rights Copyright (c) 2019 Dejun Li, Jianbao Huang, Lingcong Wang
http://creativecommons.org/licenses/by/4.0