The State of Crypto: How Blockchain Changes the Private Money Debate and the Innovation of Digital Value

Open Access

Abstract

This paper seeks to explore how cryptocurrencies improve on past issues with private currencies and assess where they fit within the broader economic and regulatory context. This paper finds that blockchain technology provides a solid foundation for cryptocurrencies to improve on many of the past issues associated with private currencies, but concludes that, given the infancy of the industry and the lack of an established regulatory framework, we cannot confirm that they are truly infallible, nor that they provide a clear answer to the debate over whether private currencies actually improve the financial system as laid out by Hayek, Ingham, and Selgin. We conclude that cryptoassets are creating a more inclusive and efficient economic system overall by spurring improvements to outdated processes, expanding access to banking and finance, improving transparency within private and government institutions, and forcing regulatory bodies to update and formulate legislation suited to the digital age.