The Rise of Digital Money
Introduces a taxonomy of money and argues privately issued digital money (e-money / stablecoins) could rapidly displace bank deposits.
Key findings
- Proposes a taxonomy distinguishing e-money/stablecoins from bank deposits and central-bank money.
- Adoption of e-money could be rapid via network effects and erode bank deposit funding (disintermediation).
- Coins the risk of 'digital dollarization' in economies with weak currencies.