Bitcoin Simply Existing Positively Impacts Monetary Policy: Research

The existence of private decentralized cryptocurrencies like Bitcoin (BTC) has a healthy impact on governments’ fiscal and regulatory policy, a new analysis contends.

TThe argument was put forth in a paper published on Aug. 16 by Max Raskin (NYU School of Law), Fahad Saleh (McGill University) and David Yermack (NYU Stern), entitled “How Do Private Digital Currencies Affect Government Policy?

3 positive impacts of cryptos simply existing

The analysis notes that as regards the global financial system, the question of cryptocurrencies’ influence is not confined to whether or not the majority of the population opts to use them. 

Rather, the authors argue that cryptocurrencies’ very existence has a counterfactual impact in that they function as a check on both fiscal and regulatory policy. 

While cryptocurrencies may not have replaced the dollar, they have three important positive areas of impact on the existing monetary system, the authors note.

First, citizens secure welfare…