Scandinavian Working Papers in Economics

Nationaløkonomisk tidsskrift,
Nationaløkonomisk Forening

Cryptocurrencies: Applications, Complications and Solutions

2019, Volume 2019, issue 1, pp. 24

Jacob Graubæk Houlberg ()
Additional contact information
Jacob Graubæk Houlberg: University of Copenhagen, Postal: University of Copenhagen

Abstract: This article explores the possibility of improving the overall adoption and usability of cryptocurrencies in a given economy. By focusing on cryptocurrencies as a medium of exchange, the complications hindering them from gaining widespread adoption are analyzed in details. Volatility is identified as a natural adoption barrier as it gives rise to currency risk, and a solution to it, in the form of a stablecoin, is brought forward. In particular, the proposed stablecoin utilizes an arbitrage enforced price ceiling and changes in supply/demand to act as price pressure mechanisms that pressures the market price towards its intended level.

Keywords: Cryptocurrency; blockchain; price volatility; stablecoin; smart contract

JEL-codes: E51; G10; G21; G23

Language: English

Full text files

2019_1_1.pdf PDF-file Full text

Download statistics

Questions (including download problems) about the papers in this series should be directed to Lasse Wolsgård ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2024-03-20 23:25:50.