Fiscal Experiences with Bitcoin: Bulgarian Case Study

Abstract

The focus of economists in Bitcoin and other cryptocurrencies has been on its monetary aspects, particularly its deflationary nature, its fungibility, and its disruption of modern monetary mechanisms. This discussion paper draws the focus away from monetary discourses towards fiscal ones, drawing on the case study of Bulgaria and the confiscation of Bitcoins of a magnitude as to pay off a substantial component of its fiscal burden. The paper thereby raises questions about the role that cryptocurrencies may play, tangentially if not directly, in fiscal policy considerations.