Aslanidis, N., "Near‐money in history: Cryptocurrencies versus bills of exchange" | WEBINAR
December 06, 2021
Title: Near‐money in history: Cryptocurrencies versus bills of exchange
Speaker: Assistant Professor Nektarios Aslanidis, Universitat Rovira i Virgili and ECO‐SOS
Host: Professor Evangelos Vassilatos, Department of Economics, Athens University of Economics and Business
Abstract: The expansive growth of cryptocurrencies has challenged the standard definition of “money” as legal tender issued by the central authority. Decentralized blockchain technology has spread the use of cryptocurrencies despite their lack of legal status as “money”. However, decentralized near‐monies are not a new phenomenon in history. This research analyses the economic and econometric features of cryptocurrencies in the era of the Digital Revolution in comparison with a crucial decentralized near-money in history: bills of exchange at the peak of the Commercial Revolution. We examine the features of near‐monies in order to re‐conceptualize the meaning of “money” beyond the current standard definition. From an economic point of view, we focus on the functions of money in theory, that is, near-monies as a medium of exchange and as a store of value. In consequence, we adopt the Diebold‐Yilmaz econometric approach to measure the economic spillovers between near‐monies and financial assets, hard currencies, and commodities with the aim to test empirically the functions of near‐monies. We believe a re‐conceptualization of the meaning of “near‐monies” in history can inspire policymakers nowadays to grapple with regulation.