 |
March 16, 2018, 10:33:25 AM
Last edit: March 16, 2018, 01:09:03 PM by Artkuz |
|
Crypto-currency is a financial innovation that allows you to bypass existing restrictions, it inevitably affects the volatility of the price level and the entire payment system. This influence is considered in the following areas:
1. Decrease in the share of real money.
2. Changes in monetary aggregates.
3. The oppression of official national currencies.
1. Today, more countries do not take the influence of crypto currency seriously. As a rule, the amount of crypto currency in circulation does not exceed 0.3% of the cash in the scale of one state. Of course, we can not exclude the possibility of a significant increase in this indicator in the future, because as a result of fluctuations in the exchange rate, the amount of crypto currency in circulation can sharply increase.
2. Trade in the virtual space due to the crypto currency inevitably affects the reduction in demand for real money, which leads to a change in monetary aggregates that directly affect the speed of circulation of money. With the widespread use of virtual money, the balance of the central bank will decrease and the effectiveness of interest rate policy will decrease. In addition, replacing money with crypto currency significantly complicates the assessment of monetary aggregates, which in turn prevents them from maintaining at the same level as the expected inflation.
3. The volume of the electronic money market is considered insignificant in relation to world turnover, nevertheless, if we consider the volume of transactions involving crypto-currencies concentrated in the scale of one developing country, this can seriously affect the value of the national currency.
|
