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Democratizing money? The role of cryptocurrencies

Author

Listed:
  • Jacopo Temperini

    (Sapienza University of Rome)

  • Marcella Corsi

    (Sapienza University of Rome)

Abstract
The article proposes a critical perspective on the potential impact of the growing cryptocurrency ecosystem on the process of democratizing money. After examining the various interpretations of the term "democratization", we focus on one interpretation: that of financial inclusion. We propose a categorization of currently available cryptocurrencies, distinguishing four macro-categories: Bitcoin; altcoins, which include all alternative and/or complementary cryptocurrencies to bitcoin; stablecoins, which are digital coins whose value is pegged to a fiat currency; and central bank digital currencies (CBDCs). We provide a description of the economic characteristics of each category and analyse how and whether these instruments can contribute to financial inclusion. While each category appears to be capable of contributing to the democratization of money, CBDCs are the only ones that can truly pursue the goal of financial inclusion. Therefore, we argue that it is not money as such that needs to be democratized, but rather the role that central banks play in the economic system.

Suggested Citation

  • Jacopo Temperini & Marcella Corsi, 2023. "Democratizing money? The role of cryptocurrencies," PSL Quarterly Review, Economia civile, vol. 76(304), pages 51-66.
    • Handle: RePEc:psl:pslqrr:2023:13
    as

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    File URL: https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/17967/16984
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    References listed on IDEAS

    as
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    Cited by:

    1. Temperini, Jacopo & D'Ippoliti, Carlo & Gobbi, Lucio, 2024. "Is the time ripe for helicopter money? Growth impact and financial stability risks of outright monetary transfers," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 24-36.

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    More about this item

    Keywords

    Money; cryptocurrency; democratization;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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