Towards Regional Monetary Unions through Blockchain Networks
11 Pages Posted: 18 Apr 2017
Date Written: April 1, 2017
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: Suggested Citation