THE PRIORITY DIRECTIONS OF NATIONAL ECONOMY DEVELOPMENT
OFFICIAL CURRENCY AND ALTERNATIVE CURRENCIES
Velimir Lukić, Aleksandar Živković
Abstract: The right of issuing currency that was to be used as a legal tender in economy has been assumed by governments as of the establishment of first central banks. However, a modern world with its advances in technology threatens to erode this monopoly and paves the way to the occurrence of what is known as digital currency issued by private entities. This paper analyzes contemporary economic and legal implications of digital currencies focusing on the most successful case among them - Bitcoin. It is argued that overall impact of digital currencies should be carefully considered. The mechanics standing behind these currencies can be easily reused in terms of fueling development in the circulation of official currencies and transition to the cashless society. On the back side, new currencies raise challenges that should be actively managed in order to prevent misbehavior. In sum, these currencies will likely make prominent impact in monetary sphere, although they are far less likely to rule out official currencies.
Keywords: money, monetary system, digital currency, Bitcoin
Published: p. 119-128
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