Working Papers
Taxing Blockchain Forks, joint with Mattia Landoni
Cross-Country Distribution of Power and Exposure in the Crypto-Market
Despite the size and global reach of crypto-markets we don’t know how much individual countries have invested in cryptos (market exposure), what share of the market individual countries account for (market power), or how those two measures are related. Movements originating in high market power countries will impact high exposure countries, representing a new channel for financial contagion. Given that cryptos can be used to purchase other cryptos, I consider multiple measures of crypto-market share. All measures find that while cryptos are traded in many currencies, the market is highly concentrated in just three---the US dollar, the South Korean Won, and the Japanese Yen account for over 90% of all crypto transactions. The exposure of a country does not correlate with its power in the crypto-market: many high exposure countries have low market power. Market exposure and market power cannot be explained by economic size, income, financial openness, domestic stock market size, or internet access. This analysis also reveals that a country's Bitcoin market share is not representative of a country's crypto-market share: a warning for regulators or researchers focused exclusively on Bitcoin markets.
Bitcoin Reveals Exchange Rate Manipulation and Detects Capital Controls.
- Working paper (SSRN)
- Forthcoming in Stanford Journal Blockchain Law and Policy
Cross-Country Distribution of Power and Exposure in the Crypto-Market
Despite the size and global reach of crypto-markets we don’t know how much individual countries have invested in cryptos (market exposure), what share of the market individual countries account for (market power), or how those two measures are related. Movements originating in high market power countries will impact high exposure countries, representing a new channel for financial contagion. Given that cryptos can be used to purchase other cryptos, I consider multiple measures of crypto-market share. All measures find that while cryptos are traded in many currencies, the market is highly concentrated in just three---the US dollar, the South Korean Won, and the Japanese Yen account for over 90% of all crypto transactions. The exposure of a country does not correlate with its power in the crypto-market: many high exposure countries have low market power. Market exposure and market power cannot be explained by economic size, income, financial openness, domestic stock market size, or internet access. This analysis also reveals that a country's Bitcoin market share is not representative of a country's crypto-market share: a warning for regulators or researchers focused exclusively on Bitcoin markets.
Bitcoin Reveals Exchange Rate Manipulation and Detects Capital Controls.
- Non-Technical Media Summary;
- Technical/Academic Working Paper:
- Online Appendix
Published Research (by date)
2nd Global Cryptoasset Benchmarking Study
Distributed Ledger Technology Systems: A Conceptual Framework
Financial Regulations and Price Inconsistencies across Bitcoin Markets.
The Potential Impact of Decentralized Virtual Currency on Monetary Policy
Blockchain Technology Disrupting Traditional Records Systems
- Free Published Version: January 2019 published by the Cambridge Centre for Alternative Finance.
Distributed Ledger Technology Systems: A Conceptual Framework
- Free Published Version: December 2018 published by the Cambridge Centre for Alternative Finance.
Financial Regulations and Price Inconsistencies across Bitcoin Markets.
- Gated Published version: Information Economics and Policy, June 2017
- (Free) Working Paper: SSRN or Globalization Institute Working Paper 2016-292
- [Data], [Slides]
The Potential Impact of Decentralized Virtual Currency on Monetary Policy
- Free Published Version: Federal Reserve Bank of Dallas Globalization and Monetary Policy Institute 2016 Annual Research Report, April 2017
Blockchain Technology Disrupting Traditional Records Systems
- Free Published Version: Federal Reserve Bank of Dallas Financial Insight, July 2017, v.6(2), pp. 1-3