• Prof. Dr. Peter Bofinger

    Peter Bofinger is the longest serving member of the German Council of Economic Experts which regularly writes reports to the German government about the overall Economic development. Before becoming professor of economics at University of Würzburg in 1992, he was an economist at the Bundesbank (1985 to 1990). Already from 1978 to 1981 he was member of the scientific research team for the German Council of Economic Experts. Bofinger wrote his doctorate thesis about Currency Competition and the vision of Friedrich August von Hayek.

Digitalization of Money and currency competition

Abstract: Most economists will agree that the future of money will be more digital than today. But while everybody speaks of ‘digitalisation’, the concrete meaning of this term remains very often unclear. There are four major areas where digitalisation could modify the traditional forms of money and credit and as consequence modify the theory and practice of monetary policy:

  • the substitution of cash with electronic money;
  • the substitution of traditional bank deposits and bank notes with cryptocurrencies;
  • the substitution of bank deposits with central bank deposits for everyone (‘universal reserves’);
  • the substitution of bank lending with peer-to-peer lending on the basis of digital platforms.
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