Visionizing a Fiat Cryptocurrency
Date
2018-09-01
Authors
Salhout, Sand
Bechter, Clemens
Journal Title
Journal ISSN
Volume Title
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Abstract
Bitcoin is part of a wider range of opportunities to creating cryptocurrencies based on
blockchains. Research has shown that the existing cryptocurrencies are very volatile and
often illiquid. A cryptocurrency endorsed by a Central Bank, as the starter of a private
blockchain, will most likely show more stability. It may even take the form of legal tender.
However, since almost all countries have their own currency already, the governments will
not feel the need for an additional currency. One exception is Palestine. It enjoyed the
privilege of having its own currency in the past. The purpose of this research is the evaluation
of the feasibility of a cryptocurrency as legal tender. The authors recommend a new
Palestinian Pound built on a private blockchain using Hyperledger. In practice it would not
differ from any other fiat (legal) currency. The current weakness of not having its own
currency could be turned into a strength by becoming the most advanced economy where
transactions are transparent and efficient. This paper fills a research gap by analyzing the
opportunities of a cryptocurrency that is actual legal tender and endorsed by a monetary
authority.
Description
Keywords
cryptocurrency , private blockchain , public blockchain , cyberocracy , Hyperledger , Ethereum , Palestine Monetary Authority
Citation
TY - JOUR AU - Salhout, Sand AU - Bechter, Clemens PY - 2018/09/01 SP - 1 T1 - Visionizing a Fiat Cryptocurrency VL - 5 DO - 10.5296/csbm.v5i2.13391 JO - Case Studies in Business and Management ER -