Making Money

Abstract

For all of their shortcomings, cryptocurrencies can provide some of the functions of money in developing countries while addressing some of the inadequacies of national currencies. Savers can hold their own cryptocurrency wallets without the need to apply to banking systems or manage the cost and complexity of holding cash. Cryptocurrencies may be less prone to depreciation and inflation given algorithms that restrict supply. In contrast to expansionary money supply in many of the most vulnerable economies, supply of cryptocurrencies is strictly limited. Cross-border trade in cryptocurrencies is harder for governments and central banks to restrict in the way they can with US dollars or other currencies.