Este relatório de pesquisa investiga a aplicação metodológica da analogia da força centrífuga ao campo da ciência econômica, com foco especial na dispersão de capital, renda e agentes em ambientes de alta volatilidade e inovação tecnológica. Através da construção do <i>Economic Centrifugal Dispersion Model</i> (ECDM), o estudo analisa como o influxo de capital () e a velocidade das transações (), ponderados pela resistência regulatória e institucional (), determinam a expansão ou a contração de mercados. A tese central sustenta que os sistemas econômicos contemporâneos, especialmente aqueles fundamentados em tecnologias Web3 e <i>tokenomics</i>, operam em ciclos de centralização-expansão que podem ser modelados matematicamente como sistemas rotacionais físicos. O relatório integra teorias da Nova Geografia Econômica de Paul Krugman, a praxeologia de Ludwig von Mises, o Efeito Cantillon e a Teoria do Caos para explicar a migração de valor do centro para a periferia. Utilizando evidências de teoria da organização, capital humano e dinâmica de redes, conclui-se que o ECDM oferece uma ferramenta preditiva robusta para identificar bolhas especulativas, processos de desintermediação e reequilíbrios de mercado em DAOs e sistemas financeiros descentralizados.<br>
We develop an agent-based model in which inflation emerges from decentralized price-setting and credit-financed production in an endogenous-money economy. Firms operate under working-capital constraints, form market-based price expectations through heterogeneous adaptive learning, and set prices via cost-plus rules with endogenous mark-ups. Bank lending simultaneously creates deposits, while heterogeneous lending rates and credit rationing shape firms' financing costs and, through unit costs, their pricing decisions. The economy features interacting production and credit networks: intermediate-input linkages propagate cost shocks across supply chains, while bank--firm relationships transmit financial conditions across firms. The interaction of network-based pass-through, state-dependent pricing incentives, and evolving credit conditions generates inflationary regimes, including episodes driven by pricing cascades and feedback loops.
Monetary theory has historically focused on the objectives of money—stability, coordination, and value preservation—while leaving the execution of monetary policy largely dependent on discretionary institutions or static rule-based systems. This paper argues that the absence of a formal execution layer constitutes a structural gap in modern monetary systems. We introduce IntelliFi (Intelligent Finance) as a general framework for the intelligent execution of monetary theory. IntelliFi treats money not as a static object or purely institutional construct, but as a closed-loop control system in which issuance, incentives, stabilization mechanisms, and policy enforcement are executed through adaptive, feedback-driven, constraint-bound, and verifiable processes. Unlike traditional fiat systems, which rely on human discretion, or algorithmic monetary systems, which rely on rigid pre-commitments, IntelliFi formalizes monetary execution as a bounded optimization problem governed by explicit constitutional constraints. Intelligence, in this context, is defined not as autonomy or artificial decision-making, but as systematic responsiveness to observable economic signals within non-negotiable limits. The paper presents a formal definition of IntelliFi, outlines its execution model, and identifies the necessary and sufficient conditions for a monetary system to qualify as IntelliFi-compliant. Existing monetary regimes—including commodity money, fiat systems, cryptocurrencies, decentralized finance protocols, and governance-based systems—are examined as partial or proto-executions of IntelliFi principles. By separating monetary theory from its execution and formalizing execution as a first-class economic problem, this work reframes how monetary systems can be designed, evaluated, and governed. IntelliFi is presented not as a new currency or policy prescription, but as a general purpose framework for implementing monetary theory in adaptive, transparent, and resilient ways.
O presente artigo formaliza o <i>Economic Centrifugal Dispersion Model</i> (ECDM) como uma estrutura analítica de alta fidelidade para a compreensão da propagação de capital e incentivos em ecossistemas de Web3 e finanças descentralizadas (DeFi). Fundamentado em uma convergência interdisciplinar entre a praxeologia da escola austríaca, a física estatística e a dinâmica de sistemas complexos, o modelo propõe que a injeção monetária em sistemas baseados em blockchain gera forças dispersivas análogas às forças centrífugas. A pesquisa detalha a aplicação do operador de Lyapunov para avaliar a estabilidade e a resiliência desses fluxos sob condições de volatilidade estocástica.<br>
Este artigo representa uma expansão analítica e quantitativa do Economic Centrifugal Dispersion Model (ECDM), consolidando-o como um framework de "Termodinâmica Criptoeconômica". Enquanto o estudo anterior estabeleceu as bases espaciais e monetárias da força centrífuga econômica, esta continuação aprofunda a modelagem através de equações diferenciais não lineares e introduz o DAO Chaos Index (DCI) para mensurar a instabilidade em governanças descentralizadas.
Cryptocurrency was designed to eliminate the constraints of traditional finance: central bank control, governmentregulation, inflation, and capital controls. This paper argues that these 'constraints' were saturation mechanisms thatprovided stability. By systematically eliminating them, cryptocurrency has created a saturation-free monetarysystem (β X 0) that is structurally incapable of price stability.Using the Landau-Stuart framework, we analyze how each design feature of cryptocurrency̶fixed supply,decentralization, censorship resistance, 24/7 trading, HODL culture̶removes a stabilizing mechanism present intraditional finance. The result is extreme volatility: not a bug but an inevitable consequence of the designphilosophy. We extend the analysis to stablecoins (borrowed β), DeFi (negative β), and Proof-of-Work energyconsumption (saturation-free resource extraction). We conclude that cryptocurrency faces a fundamental dilemma:adding saturation mechanisms would provide stability but contradict the libertarian design philosophy that givescryptocurrency its appeal. Cryptocurrency cannot be both free and stable.
Olawale C. Olawore, Taiwo R. Aiki, Oluwatobi J. Banjo, Victor O. Okoh · 5 authors
The global financial system is now undergoing considerable instability, raising critical issues about the durability of reserve currencies. This research examines the probability of the euro surpassing the United States dollar as the predominant reserve currency, particularly in the context of heightened economic volatility and the emergence of new rivals, such as the Chinese yuan, striving for more significance in the global market. The research specifically examines the possibility of the euro surpassing the United States dollar. This research employs a mixed-methods approach to evaluate the competitiveness, credibility, and limitations of predominant reserve currencies. It does this by integrating actual reserve data from the International Monetary Fund (IMF) and the Bank for International Settlements (BIS) with theoretical concepts derived from dominant stability theory, network effects, and institutional trust. The data indicates that the dollar's supremacy has been progressively declining, from over 70% of global reserves in 2000 to around 58% by mid-2024. Robust legal frameworks, monetary credibility, and comprehensive financial markets collectively enhance the prosperity of the euro, which constitutes almost twenty. (20%,) percent of the total. The Eurozone, meanwhile, persists in facing challenges such as the lack of a fiscal union and the disunity of political leadership within the bloc. The Chinese yuan accounts for only four (4%) percent of world foreign currency reserves, notwithstanding programs like the Belt and Road and enhanced central bank swap lines promoting its utilization. China's persistent objective of sustaining a depreciated yuan to bolster its international economic competitiveness presents a considerable obstacle. Because the yuan cannot be converted into other currencies and there is uncertainty over its value over the long term, foreign central banks are unable to maintain considerable reserves of the yuan. The continued existence of concerns over capital restrictions, decreased financial transparency, and political participation has led to widespread pessimism regarding the yuan's potential to continue functioning as a reserve currency despite these factors. Based on what the study found, it seems unlikely that there will ever be a single currency that is the most important one in the world. This suggests that there is a multipolar system in which the euro, the yuan, and digital currencies like the e-CNY and the digital euro all function together in a framework for international monetary policy that is becoming more decentralized and strategically split. These changes have big effects that might change not just how the world is run, but also the trade strategy and macroeconomic policy that are already in place. These changes also make life harder for civilizations that are in other regions of the planet.
The accelerating geopolitical rivalry between major powers has renewed interest in diversifying central bank reserves. Traditionally dominated by the US dollar and gold, global reserve composition is now being reconsidered amid de-dollarization trends and the growing relevance of crypto assets – particularly Bitcoin. This study examines the rationale, risks, and strategic implications of incorporating Bitcoin into sovereign reserve portfolios, with a focus on the financial confrontation between the United States (US) and the People’s Republic of China (China).Adopting an interdisciplinary approach, the paper integrates macroeconomic, legal, and geopolitical analysis. It explores the United States’ gradual institutional accommodation of Bitcoin, culminating in the 2025 establishment of a Strategic Bitcoin Reserve, contrasted with China’s prohibitive stance and promotion of the centralized digital yuan (e-CNY). The study further analyzes the legal instruments, regulatory strategies, and infrastructural controls through which the US exerts influence over crypto markets, including indirect market interventions and custodial frameworks.Findings indicate that, despite high volatility and limited adoption, Bitcoin is increasingly perceived as a strategic hedge by states seeking to reduce dependence on traditional financial hegemony. While its formal inclusion in reserves remains marginal and politically constrained, its symbolic and geopolitical utility is growing – particularly for sanctioned or financially isolated economies.The article concludes that Bitcoin’s role in global finance may expand under specific conditions: market stabilization, regulatory convergence, and persistent geopolitical fragmentation. To support structured evaluation, the paper introduces two novel analytical concepts – the Sovereign Crypto Reserve Readiness Index (SCRRI) and the Bitcoin Reserve Exposure Threshold (BRET), which together provide a framework for assessing both institutional feasibility and risk-adjusted limits for sovereign Bitcoin integration.
This study investigates the implications of Central Bank Digital Currency (CBDC) implementation and fintech adoption on the effectiveness of monetary policy, emphasizing the mediating role of financial system stability and the moderating influence of public trust in central banks. The research addresses a pressing issue in the digital transformation of global finance: whether digital currencies issued by central banks can enhance policy responsiveness in increasingly cashless and decentralized economies. Using an exploratory qualitative method, this study integrates a systematic review of post 2020 academic literature and central bank reports from The Bahamas, Nigeria, and China. A conceptual framework is developed to examine causal relationships among CBDC design, fintech integration, institutional trust, and policy effectiveness. The findings reveal that CBDC impact is highly context dependent; programmable and inclusive designs, such as China’s Digital Yuan, significantly enhance monetary transmission, whereas technical and social barriers, such as in Nigeria, limit policy effectiveness. The Bahamas serves as an intermediate case where offline and identity linked digital currency supports inclusion and moderate policy gains. The analysis confirms that financial stability mediates the relationship between digital innovation and policy outcomes, while public trust either strengthens or diminishes policy reach. This research contributes to the understanding of CBDC as a policy tool by highlighting institutional, technological, and behavioral factors that determine its success. Implications suggest that policymakers must adopt a multidimensional approach that combines digital infrastructure readiness with strong governance and trust building measures.
This article examines the macroeconomic implications of central bank digital currencies (CBDCs) and private cryptocurrencies using a simple real business cycle model. The analysis explores how agents allocate their portfolios among fiat money, CBDCs and private cryptocurrencies in response to inflation shocks and technological advancements in cryptocurrency production. The model predicts that rising consumer confidence can gen-erate inflationary pressures, prompting a shift towards private cryptocurrencies, which are insulated from inflation tax. Additionally, positive shocks in cryptocurrency production can lead to capital reallocation, reducing final goods production and causing a brief spell of recession. A central bank can remarkably counteract this recessionary effect of a crypto boom by lowering the policy rate. These findings highlight the complex interplay between digital currencies and monetary policy, emphasizing the need for strategic interventions using policy rate as a tool to balance economic stability and crypto innovation. JEL Classification: E50, E52, E58
This paper offers a critical reassessment of Milton Friedman’s economic principles—monetarism, free-market competition, and limited government—in light of the rise of artificial intelligence (AI) and platform capitalism. Drawing on a structured qualitative literature review, the study explores how AI-driven economic structures challenge core assumptions embedded in Friedman’s theoretical framework. The analysis is organized around three key domains where traditional economic logic is being destabilized: (1) the erosion of competitive market dynamics through the rise of digital monopolies and algorithmic control; (2) the transformation of labor markets via automation, gig work, and AI-based management; and (3) the weakening of central bank authority amid the proliferation of decentralized finance and platform-based payment systems. Friedman envisioned markets as inherently self-correcting and efficient, but AI capitalism increasingly reveals the limitations of such views. Digital platforms leverage network effects, data accumulation, and algorithmic manipulation to entrench market power, creating structural barriers to entry that contradict the competitive ideal. Similarly, the gig economy, governed by opaque algorithms, distorts labor flexibility into labor precarity, contradicting Friedman’s belief in voluntary and efficient labor exchanges. On the monetary front, the expansion of private payment ecosystems and algorithmic lending challenges the foundational monetarist assumption that central banks can regulate the money supply effectively. While the analysis recognizes the continued relevance of Friedman’s normative commitment to individual autonomy and market-based coordination, it argues that his framework must be significantly revised to account for the institutional and technological dynamics of the digital age. The paper concludes by proposing a forward-looking governance agenda focused on antitrust reforms, algorithmic accountability, labor protections, and monetary innovation. In doing so, it contributes to the emerging literature that seeks to reconcile classical economic theories with the demands of a rapidly evolving AI-driven global economy.
This article critically examines the adoption of Bitcoin as legal tender in El Salvador, contextualising it within the legacy of official dollarisation after 2001. First, we empirically assess the benefits and costs of dollarisation, finding that, despite some theoretical claims, the benefits remain questionable in hindsight, while the costs for the country were relatively low. Second, we explore Bitcoin's role as legal tender, proposing its understanding as a form of International Money and its potential in facilitating remittances. Building on this, we show that the existing dollarisation and a ‘soft adoption’ of Bitcoin contributed to a comparatively low risk and low associated costs of introducing Bitcoin as a second legal tender. Third, we situate these developments within the broader geopolitical context, where the global monetary and financial system and the hegemony of the USD (the current World Money) are increasingly being repoliticised. In this light, the adoption of Bitcoin can be seen as a trial-and-error, unsuccessful at best, attempt by the Salvadoran government to enhance its leverage, improve remittance flows, and provide a low-cost escape valve in an evolving global landscape.
The logic of financial capital has become a dominant structuring force in global hegemony. Drawing on Giovanni Arrighi's theory of systemic cycles of accumulation, financial capital recurrently supersedes productive activities, reshaping global economic and political structures, particularly in the late stages of hegemonic cycles. Meanwhile, technological advancements—especially artificial intelligence, blockchain, and fintech—are often framed as potential disruptors of financial supremacy. Yet their development prompts critical questions: Can technologies achieve systemic autonomy, or will they remain subordinate to the imperatives of financial capital? This paper argues that technologization remains structurally embedded within financialized circuits of capital accumulation rather than achieving systemic independence. The rise of digital finance, venture capital, and high-frequency trading exemplifies how financial markets dictate the trajectory of technological development, prioritizing short-term financial gains over long-term productive innovation. Case studies from fintech and blockchain demonstrate that emerging technologies, rather than decentralizing power, are often co-opted into speculative financial markets, thereby reinforcing existing economic asymmetries. By emphasizing the structural constraints that prevent technologization from supplanting financialization as the primary driver of global economic governance, this study contributes to ongoing debates on the relationship between financial and technological power. The findings suggest that overcoming financial hegemony requires more than technological advancement—it necessitates structural transformations in economic governance, alternative models of innovation, and democratized control over technological development. Future research should explore potential pathways for breaking the financialized grip on technologization, with particular focus on cooperative economic structures, state-led innovation, and alternative financial models that prioritize equitable and sustainable development.
Mint-Verse is a next-generation NFT marketplace designed to provide users with a seamless and immersive experience in buying, selling, and creating non-fungible tokens. The platform leverages blockchain technology to ensure transparency, security, and authenticity of digital assets, making it a trusted and decentralized ecosystem for digital creators and collectors. It offers a range of advanced features, including a dynamic NFT slider with countdown timers, an interactive bidding system, and a secure transaction page where users can purchase NFTs and receive digital receipts. The platform supports multiple sign-up methods, allowing users to create accounts easily and manage their profiles efficiently. A dedicated wallet section enables users to track their transactions, view their NFT collections, and manage digital assets with ease. Mint-Verse also introduces Mint-gram, an Instagram-like feature where users can showcase their NFT collections, interact with others, and engage with the growing NFT community. The platform further enhances creative possibilities by providing an NFT generation tool, allowing users to mint their own NFTs with customized attributes, ensuring flexibility and creative freedom. User experience is a core focus of Mint-Verse, incorporating an intuitive and aesthetically pleasing interface with animated loaders, a dynamic mouse cursor, interactive buttons, and real-time updates for a smooth and engaging browsing experience. Additional features such as a like button for NFTs, a contact section with email functionality, and a logout option contribute to a seamless and user-friendly navigation system. Built using the MERN stack, including MongoDB, Express.js, React.js, and Node.js, Mint-Verse ensures high performance, scalability, and efficiency. By integrating cutting-edge blockchain solutions, the platform aims to bridge the gap between artists, collectors, and investors by providing a decentralized, feature-rich, and user-friendly NFT marketplace. Mint-Verse envisions a future-proof digital ecosystem that empowers users to securely trade, create, and collect NFTs while embracing the evolving Web3 landscape, setting new standards for innovation in the digital asset industry.
Global policymakers have been exploring either issuing a new, or developing an existing, central bank digital currency (CBDC) in order to settle retail, wholesale and cross-border transactions. A retail CBDC seems beneficial and overdue. The merit of building the financial market infrastructure for a wholesale CBDC based on distributed ledger technology is also compelling. Amidst the hype on ‘unified ledgers’, ‘smart contracts’ and ‘atomic settlement’ there has yet to emerge a consensus on the operational side. A key design issue is whether to tokenise reserves or a generic liability with broader usage aka cash. Under the Trump Administration any development of CBDCs is off-limits for federal agencies; instead, crypto is the future of money. Elsewhere there is perhaps greater urgency to fast-track CBDCs in order to lock users into arrangements that safeguard monetary sovereignty, preserve monetary and financial stability and deter U.S.-owned payment system oligopolies.
Economic theory has long been governed by the principle of scarcity—an assumption that shapes the allocation of resources in virtually all historical economic systems. From classical economics, as articulated by Adam Smith in The Wealth of Nations (1776), to the critiques of capitalist frameworks offered by Karl Marx in Das Kapital (1867), scarcity has been the foundational pillar upon which economies have been constructed. Even in the 20th and 21st centuries, the models of Keynesian economics (Keynes, 1936) and neoliberal capitalism (Friedman, 1962) maintain that resource allocation is predicated on the limits imposed by scarcity, whether that scarcity is natural, human, or financial. However, the technological and systemic advances of the 21st century have begun to challenge this assumption, which, despite its dominance, no longer reflects the evolving nature of global economies. In the era of digital technologies, artificial intelligence (AI), and quantum computing, scarcity is increasingly being replaced by a new set of possibilities—an emergent paradigm defined by abundance and infinite scalability. Quantum computing offers the potential for processing power so vast that it could redefine the very nature of problem-solving. Simultaneously, AI-driven automation and digital decentralization are dismantling traditional models of labor, resource management, and value creation (Brynjolfsson & McAfee, 2014). Moreover, advancements in nanotechnology and synthetic biology could soon facilitate material abundance in previously unimaginable ways, fundamentally undermining traditional economic concerns about finite resources (Drexler, 2013). Blockchain technology, with its promise of decentralized finance (DeFi), is already challenging the very nature of money, while new models of governance enabled by AI and multi-agent systems are rethinking the need for centralized economic management (Helbing, 2015). This transformation signals the birth of a new economic model, one that transcends traditional notions of scarcity—what we term the Infinity Economy. The Infinity Economy represents a departure from existing paradigms of capitalism, socialism, and even post-capitalism (Piketty, 2014). It proposes a complete reimagining of how value is produced, exchanged, and distributed in a world increasingly defined by technological abundance. Rather than extending existing economic systems, the Infinity Economy seeks to eliminate the very foundations of economic thought—namely, scarcity and limited resource allocation—ushering in an era where value and wealth are no longer bound by finite constraints.
Cryptocurrencies were designed to function as money without banks. How, then, could they run into a banking crisis in 2022? We argue that the evolution of the crypto sphere into a credit based system is driven by its inherent contradictions: Bitcoin and other cryptocurrencies only became money-like when centralised exchanges began to create credit claims on crypto tokens, thus providing liquidity and elasticity to crypto markets. Stablecoins connect the crypto sphere to the conventional banking system, thereby securing indirect sovereign backing. Both centralized exchanges and stablecoin issuers are functionally equivalent to shadow banks. Stablecoins additionally fulfil the defining criteria of shadow money. The contemporary cryptocurrency sphere comprises an internal hierarchy of credit that is firmly integrated into the conventional monetary system. The emergence of ‘crypto shadow banking’ can be understood as the latest chapter in the long and turbulent history of unregulated private monetary innovation. Our analysis not only explains the 2022 crisis, it also demonstrates that credit theories of money can, counterintuitively, account for the anti-credit project of cryptocurrencies.
The international monetary system (IMS) has long been interpreted through the lens of singularity, where global stability hinges on a single dominant currency fulfilling all core monetary functions—store of value, medium of exchange, and unit of account. This paper challenges that paradigm by introducing the concept of functional fragmentation. The IMS is evolving toward different currencies increasingly specializing in specific roles, without any single issuer monopolizing the system. The transformation draws on wholesale central bank digital currencies (wCBDCs) and distributed ledger technologies (DLTs), but also reflects deliberate institutional choices shaped by geopolitical tensions and the erosion of trust in dollar-centric infrastructure. The U.S. dollar is likely to maintain its primacy in global reserves, but new platforms are enabling regional currencies to gain ground in payments and settlement. First, emerging markets are building wCBDC-based networks designed to bypass traditional correspondent banking. Second, the European Union is advancing interoperability and financial infrastructure resilience to safeguard the euro’s regional role. Third, the USA and the UK, slower to adopt CBDCs, are leveraging regulatory frameworks around stablecoins to reinforce dollar dominance through fintech intermediaries. The implications for global liquidity, reserve strategies, and financial stability are profound, requiring renewed attention to institutional coordination and systemic design in a modular, post-hegemonic IMS.
Abstract Blockchain-based emerging technologies such as decentralized finance (DeFi), cryptocurrencies, tokens, and smart contracts have introduced innovative frameworks for resource allocation and economic interactions. Ethereum, as the major technical network foundation of DeFi and tokenized assets, is becoming increasingly pivotal in facilitating an extension and alternative to traditional finance for many stakeholders, including those who are “unbanked”. Moreover, the recent transition of Ethereum from a proof-of-work (PoW) mechanism to a proof-of-stake (PoS) consensus mechanism and the Shanghai upgrade may significantly impact Ether (ETH) distribution. However, the status quo and dynamics of wealth distribution, especially after these changes in governance structure, remain unclear. By utilizing a rich dataset spanning the entire Ethereum history from July 2015 to December 2024, we analyze the balances across address groups of different sizes and the role of key economic activities and infrastructure components within Ethereum, such as exchanges, DeFi platforms, and staking. To provide detailed insights into ETH’s distributional equality, our approach combines descriptive, longitudinal, and causal inference analyses; a complete enumeration of more than 98 million unique wallet addresses; and novel on-chain analysis. Our findings show a substantial concentration of ETH within a small fraction of addresses, with approximately 0.3% of wallets holding nearly 95% of the total supply, despite the majority of wallets holding less than 0.1% ETH. However, the ETH distribution broadly resembles wealth distributions in traditional economies, with a log-normal body and Pareto-like tails. We assert that previous studies have overstated the concentration of ETH. Additionally, our dynamic analysis reveals a nuanced trend toward less concentration over time, driven by market cycles, increasing staking participation, and reinvestment in DeFi. These results challenge the notion of pervasive centralization. This study contributes to a deeper understanding of the current ETH distribution and its evolution over time. Therefore, this work provides an objective, data-driven basis for the ongoing discussion on wealth (in)equality in blockchain-based ecosystems, particularly in DeFi.
This chapter examines Central Bank Digital Currencies (CBDCs), which are digital representations of a nation’s fiat currency issued by central banks. It explains the reasons for the increasing global interest in CBDCs, attributable to the proliferation of decentralized finance instruments such as cryptocurrencies, which present risks including money laundering and terrorism financing. In contrast to decentralized cryptocurrencies, CBDCs are government-backed, centralized and regulated. The chapter enlists the advantages of CBDCs, encompassing enhanced transaction speed, efficiency, privacy and financial security. The chapter further elaborates on various global initiatives in CBDC development. Countries like China, India, Nigeria, Jamaica and The Bahamas have implemented CBDCs with varying degrees of success. China has pioneered the endeavor with its e-yuan. India has launched two forms of CBDCs: CBDC-Wholesale (CBDC-W) for financial institutions and CBDC-Retail (CBDC-R) for the general public. Additionally, the chapter investigates the technological aspects of CBDCs, such as their integration with distributed ledger technology (DLT), smart contracts and different models of issuance (wholesale versus retail). Challenges pertaining to privacy, security, scalability and interoperability were also examined, underscoring the necessity for judicious design and regulation. The chapter concludes by asserting that CBDCs represent the future of digital finance, providing central banks with enhanced control over monetary policy while promoting financial inclusion and reducing dependence on private payment systems.
Francesco Maria De Collibus, Carlo Campajola, Claudio J. Tessone
Abstract The transfer velocity of money is a macroeconomic quantity that measures the frequency of exchanges in an economy. For cryptoassets it can be exactly measured adopting a new approach, MicroVelocity. In this study we apply the framework to Ether, the native cryptocurrency of the Ethereum blockchain, to investigate velocity and its top contributors and how they can be characterised in the Ethereum ecosystem. While the inequalities and heterogeneity in wealth are well known, we here find that the same inequalities occur as well for MicroVelocity distribution and that this inequality is not explained just by wealth, but rather by the behaviour and economic activity of each individual agent.