Hard/Soft Monetary Unions and Blockchain Dynamics

Abstract

The Brexit issue has caused much concern regarding the future economic scenario of Europe in particular and the world in general. There are several reasons for Brexit. One of them is that the very nature of Monetary Unions is its rigidity. The 'one size fits all' yardstick won't apply to many nations due to the sheer diversity of the people who populate it. Present Monetary Unions restrict the monetary policies and freedoms of individual member states. We can label this as 'Hard' Monetary Union reflecting its rigid nature. A 'Soft' Monetary Union is one where individual member states have greater Monetary and fiscal flexibility when it comes to economic policies (while still being within the broad framework of the said monetary union).

'Soft' Monetary Unions can be achieved using Regulated and Sovereign Backed Cryptocurrencies like NationCoins. This paper analyses and deliberates on the dynamics and interactions of Hard/Soft Monetary unions and Blockchain Technology.

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

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