A Hayekian View of Digital Currencies

doi:10.1017/9781009362290.008

6 - A Hayekian View of Digital Currencies

from Part II - Digital Assets and Decentralised Finance

Published online by Cambridge University Press: 06 March 2025

Andy Yee and

Nikhil Vadgama

Edited by

Reena Aggarwal and

Paolo Tasca

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Reena Aggarwal: Affiliation:
Georgetown University, Washington DC
Paolo Tasca: Affiliation:
University College London

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Summary

With the advent of blockchain, there has been an explosion of cryptocurrencies, stablecoins, corporate tokens, and sovereign digital currencies. This chapter details new finance business models and the associated proliferation of digital currencies from the perspective of Friedrich Hayek’s classic work on monetary denationalisation. It also briefly introduces the bridge between centralised finance (CeFi) and decentralised finance (DeFi). We consider the major actors in the digital currency space and postulate possible future developments. We conclude that the rise of and competition between new digital forms of money will only accelerate with significant implications on global monetary arrangements.

Keywords

Securities token offerings cryptocurrencies crypto-assets pension investments

Type: Chapter
Information: Digital Assets
Pricing, Allocation and Regulation
, pp. 104 - 128

DOI: https://doi.org/10.1017/9781009362290.008 [Opens in a new window]

Publisher: Cambridge University Press

Print publication year: 2025

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