Demand for alternative currencies will lead to a wave of private monies, new research from the Institute of Economic Affairs predicts.
The innovation of non-conventional types of money – such as Bitcoin – has been fuelled by mounting restrictions on financial freedom. Constraints on commerce, the erosion of financial privacy and a wish for greater quality have been the driving forces in the emerging market for private money.
New Private Monies: A Bit-Part Player? by Kevin Dowd, argues that states must allow a level playing field as far as private money is concerned. For too long the government has stifled competition between state-backed and private currencies. Instead, central banks should welcome competition as it forces them to offer consumers greater choice and improved quality.
via Bitcoin will open the floodgates to a tidal wave of private money | Institute of Economic Affairs.