Towards Regional Monetary Unions through Blockchain Networks

11 Pages Posted: 18 Apr 2017

Date Written: April 1, 2017

Abstract

The concept of political and economic integration has not progressed beyond the concept of a Nation-state. The primary reason is the trust deficit among citizens in a supra-national entity. We can use Blockchain systems-which are trustless networks-to resolve this issue. We can float a Regional Cryptocurrency (RCC) which can bring about a successful Regional Monetary Unions (RMU) amongst a group of nations in a transparent manner.

This paper deals with the idea of realising a monetary union through Blockchain networks. Firstly I describe the basics of cryptocurrencies and RSBCs. Then we shall evaluate how RMUs have failed due trust deficit among citizens of members of RMU. We then analyse as to how Blockchain networks can be a solution to these problems. The paper concludes by summarizing the difficulties and solutions regarding successful formation of Regional Monetary Unions.

Keywords: Monetary Union, Common Currency, Trade Agreement, Euro

JEL Classification: E42, E51, E58, F02, F15, F36, F33, F45, N15, N16, N17

Suggested Citation

Hegadekatti, Kartik, Towards Regional Monetary Unions through Blockchain Networks (April 1, 2017). Available at SSRN: https://ssrn.com/abstract=2944539 or http://dx.doi.org/10.2139/ssrn.2944539

Kartik Hegadekatti (Contact Author)

Independent ( email )

New Delhi, 110003
India

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