Virtual Currencies

Permissionless blockchains have been described as a novel institutional building block for voluntary economic exchange, with unique protocol features such as automated contract execution, high levels of network and process transparency, and uniquely distributed governance. We argue that conventional institutional economics analysis of blockchain networks is incomplete absent a more robust application of descriptive polycentric analysis. Though the distributed governance that permissionless blockchain protocols provide is novel, these networks nonetheless require ongoing coordination between stakeholders and are subject to competitive pressures much like other private organizations pursuing similar goals for a set of users who can choose among providers. We characterize change on blockchain networks as resulting from internal sources and external sources. These internal sources include constitutional (protocol) design and the related need for collective choice processes to update pro...

Resumen: Este artículo tiene por objeto analizar la regulación de las criptomonedas y de los diferentes proveedores de servicios existentes en este sector, con especial énfasis en el contexto regulatorio e institucional de la Unión Europea y específicamente de España. Para tal fin, esta investigación examina y discute críticamente los presupuestos conceptuales y funcionales que están determinando los últimos desarrollos de las políticas legislativas sobre las criptomonedas. La tesis básica que se sostiene en este trabajo es que a medida que se adopten socialmente las criptomonedas y evolucione la tecnología digital subyacente (DLT/Blockchain), los reguladores y autoridades tendrán que ir cambiando el enfoque legislativo actual, que de momento es muy limitado y restrictivo. En este trabajo se propone pasar de una aproximación basada en riesgos y amenazas al sistema financiero y tributario vigente a otro más integrador de esta tecnología financiera.

Palabras clave: monedas virtuales, criptomonedas, monedero electrónico, proveedores de servicios de cambio, proveedores de custodia de monederos electrónicos, claves criptográficas, Blockchain

Abstract: The purpose of this article is to analyze the regulation of cryptocurrencies and of the different existing service providers in this sector, with special emphasis on the regulatory and institutional context of the European Union and specifically Spain. To this end, this research critically examines and discusses the conceptual and functional assumptions that are determining the latest developments in legislative policies on cryptocurrencies. The basic thesis that is supported in this work is that as cryptocurrencies are socially adopted and the underlying digital technology (DLT / Blockchain) evolves, regulators and authorities will have to change the current legislative approach, which at the moment is very limited and restrictive. In this paper, it is proposed to move from an approach based on risks and threats to the current financial and tax system to one that is more integrative of this financial technology.

Keywords: virtual currencies, cryptocurrencies, ewallet, exchange service providers, custodian wallet provider, cryptographic keys, Blockchain

The proliferation of Internet and virtual communities led to the creation and continuous increase of circulation of virtual currency schemes. The virtual currency that has seen enormous growth both in value and public perception to date is the Bitcoin scheme which is based on a pioneering technology: the decentralised ‘blockchain’ technology. Bitcoin does not have any physical counterpart with legal tender status and there is no involvement or supervision by central banks or any other authorities in the process. Hence, its fundamental features in the context of cryptocurrency could be considered both beneficial and disadvantageous. However, the risks to which users, central banks and whole economies are exposed, might be mitigated whether Bitcoin scheme would be regulated. While the question of a potential regime for this type of virtual currencies arises, several national authorities, the European Central Bank and international fora express their major interest pertaining to the issue. Although Bitcoin’s future role as a currency is a completely hypothetical matter, its technology could transform law not only in terms of new legislation, but also in terms of practice.

Bitcoin, also known as a decentralized virtual currency (DVC), is regulated differently in the People’s Republic of China (PRC), Canada, and the United States, and represents a vastly underdeveloped area of the law. No country has currently backed Bitcoin. Launched in 2009, and founded by Satoshi Nakamoto,  Bitcoin is a “decentralized peer-to-peer virtual currency.” Other virtual currencies include Litecoin, Namecoin, Auroracoin, Peercoin, and Dogecoin – about 500 varieties in total – but research here primarily focuses on Bitcoin. A comparative analysis helps discern how these respective countries classify Bitcoin (e.g., a virtual object, currency, or potential security), and how these jurisdictions regulate, or intend to regulate, DVCs. Bitcoin is identified as a “currency,” throughout the paper, but the classification is heavily contested. Questions for analyses include: are there appropriate existing legal frameworks to regulate Bitcoin? What securities regulation challenges does Bitcoin pose? What are the consumer and investor protection concerns associated with Bitcoin compared to traditional financial exchanges? What are the cross-jurisdictional challenges of virtual currency transactions that operate over the Internet (e.g., money laundering, or fraudulent activities)? Research incorporates securities commission reports, social and political commentary from secondary sources, and relevant jurisprudence and legislation. Findings help situate the current climate of Bitcoin globally, and assess how its regulation differs relative to technological, economic, social, financial, and political forces.

SUMARIO I. Introducción. II. Aspectos pertinentes de la naturaleza de los crip-toactivos y en particular las criptomonedas. III. Ámbito territorial del Impuesto Sobre Sucesiones. IV. Supuesto de exclusión de las criptomo-nedas por extraterritorialidad. V. Supuesto de exclusión de las cripto-monedas por su carácter no nominativo. VI. Conclusiones y Recomen-daciones. VII. Bibliografía. i. introducción Es fácilmente constatable que la irrupción de la valoración del internet, o mejor dicho, el internet del valor o de las cosas, es un fenómeno que ha cap-tado la atención del mundo entero, y como fenómeno global que incide en las relaciones jurídicas entre personas, es el objeto de estudio pormenorizado de abogados, y por supuesto con especial énfasis, de los especialistas en derecho tributario. Basta hacer una revisión de los tópicos discutidos por todas las conferencias y congresos de derecho fiscal en lo que va de este año para obser-var como resalta el tema de la llamada era digital, y en particular la monetiza-ción digital como punto de discusión, con miras a concretar en los efectos im-positivos de esta nueva modalidad de transacciones económicas. No obstante, más allá de la simple moda de estos nuevos tiempos en los que de la mera información que se difunde e intercambia constantemente por la red global de internet, estamos ahora obteniendo activos valorables de la interacción de millones de usuarios y la capacidad de aplicar la tecnología de encriptado y seguridad conocida como blockchain, que viene a constituir el pilar en el que se soporta toda esta nueva modalidad de generar relaciones de relevancia eco-nómica, que pretende cambiar el modo en que la humanidad va a interactuar en los próximos años. Considero que este auge se debe, en no poca medida, a la excitación que ha provocado en los mercados financieros mundiales la generación de riqueza-aunque para algunos no verdaderamente material-de

Money is one of mankind's earliest and greatest inventions. Money, as we know it today has a long
evolutionary history. The process started from barter in ancient times and evolved into
cryptography-based money in modern times. The evolution process of money has always been
closely connected with the technological advancements in an economy and modern economy is
high-tech. The global economy is inevitably moving towards a digital eco-system which requires
a new and auspicious payments solution that better address the needs of the people involved. Over
the last couple of years, cryptocurrencies have gained rapid market growth as well as serious public
attention. The creator of the first cryptocurrency, Bitcoin, using the pseudonym Satoshi Nakamoto,
wrote a white paper titled ‘Bitcoin: A Peer-to-Peer Electronic Cash System’ and in his paper he
describes Bitcoin as a purely peer-to-peer version of electronic cash (Nakamoto, 2008). The
motivation of the creator behind Bitcoin was to develop an alternate payments solution to cash
while retaining the advantageous properties of cash.

This Continuous Assessment (CA) is part of module Global Transaction, Banking and Payment Systems (Duane, 2015). The topic chosen for this CA is ‘Ripple protocol’ and its role in developing a banking payment system in regards to other acknowledged systems out there.  First there is a literature overview of future of financial systems lead by new guidelines and legislations, as a result of last crisis, environment concern and information communication technology (ICT) influence on finance-banking sector.  With explanation of virtual currencies and their terms for better understanding of the Ripple protocol and how it works and who is it made for to use.  Second there is discussion on different most used systems (SWIFT, Bitcoin, and Ripple). And third is made a conclusion of the role of Ripple and the systems discussed and overview of literature on financial systems.


Key words: Ripple protocol, XRP, transaction network, digital currency, FX.

يعد «البلوك تشين» (Blockchain) أو «سلسلة الكتلة» أكبر سجل رقمي موزع ومفتوح يسمح بنقل أصل الملكية من طرف إلى آخر في الوقت نفسه (Real Time)، دون الحاجة إلى وسيط، مع تحقيق درجة عالية من الأمان لعملية التحويل في مواجهة محاولات الغش أو التلاعب. ويشترك في هذا «السجل» جميع الأفراد حول العالم. ويمكن اعتبار«البلوك تشين» حالياً أكبر قاعدة بيانات موزعة عالمياً بين الأفراد.

le b itcoin est un OVNI juridique et fiscal.
Contrairement au vocable attaché à ce produit, il ne s'agit pas d'une monnaie, puisqu'il n'est pas créé par un Etat.
Qu'est-ce donc ? Et, en cette période de disette budgétaire, comment les Etats imposent-ils les b itcoins ?
Enquête sur le trou noir juridique le plus médiatisé de l'actualité.

O presente artigo tem por objetivo realizar um estudo descritivo das criptomoedas – e particularmente de sua espécie mais conhecida, o Bitcoin – classificando-as como forma monetária inserida no grupo das moedas paralelas. Atentar-se-á, no entanto, às peculiaridades deste novo instrumento, que se diferencia dos instrumentos criados por particulares até o presente – principalmente devido ao seu caráter desinstitucionalizado e “anárquico” – como descrito pelos próprios usuários. Para uma melhor diferenciação, explorar-se-á ainda um outro caso prático, o caso do Banco Palmas, conhecido por ter aliado a coesão de uma comunidade à emissão e circulação de uma moeda própria de circulação restrita que levou a um desenvolvimento significativo da comunidade.

New technologies always pose a challenge for rigid legal regulations. The law is often not adapted to the pace of technological advancements of society and the socio-economic changes which result due to new technology. Smart contracts, which are decentralised applications implemented on a Blockchain platform, use if/then logic to create self-executing, self-enforcing and state-contingent contracts, where ‘this’ and ‘that’ are predetermined by the smart
contract’s author.

Considering its novelty as a concept, a relatively small body of literature has sought to investigate the law in relation to smart contracts, rather than the more general blockchain phenomenon. Specifically, however, there is an apparent desire amongst scholars and professionals in this field that wish to come to a consensus on whether legal jurisdictions should pave the way for specific legal rules which regulate smart contracts or whether smart contracts’ enforceability can be aligned with the existing traditional principles of contract law.

This study incorporates an analysis of the main thread of arguments and discussion regarding smart contracts which seem to be whether or not they are contracts in the legal sense, whether they are a disruptive innovation in the legal system and what their benefits and potential threats are. It will then seek to provide a separate analysis of the English law of contract and the Maltese law of contract. This will be fundamentally important, not just because the definitions vary, but also because the former is based on case-law while the latter is based on written law.

The conclusion reached is that traditional contract law remains relevant in most transactions even if they are entirely structured by way of smart contracts, and the author ultimately concludes that where a smart contract carries all the indicia of a traditional contract, it would be deemed to be legally valid and enforceable in terms of law.

A la suite de l'adoption de la loi sur l'économie sociale et solidaire (loi ESS), nous présentons le nouveau cadre juridique des monnaies locales en droit français (p.63 et p.138 pour les Système d'échange locaux).

Following the French law passed in July 2014, we draw the first legal pictures of local (p. 63) and community currencies (p.138).

Bitcoin is a decentralized system of digital authentication that facilitates the circulation of value on the Internet without the presence of any intermediaries, a characteristic that has often gained it the definition of “digital cash” or “crypto currency”, since it can be used as money for payments. This article consists in a technoetic inquiry into the origins of this technology and its evolution. This inquiry will take in consideration the biopolitical dynamics that govern the Bitcoin community as well specific characteristics of the technical realization, aiming to provide insights on the future of this technology as well a post-humanist interpretation of its emergence.

A perceived risk in terrorist use and adoption of virtual currencies over the past few years has driven the widespread notion that this financial innovation represents a threat to security. This dissertation addresses this issue, examining the security implications associated to the rise of this technology. It argues that the risks of terrorist exploitation are in fact limited, these being primarily confined to their sporadic and ad hoc use as opposed to their adoption as a sustained financing method. Moreover, it contends that a number of practices have ultimately led to the ‘securitisation’ of this issue, or its framing in the logic of security and emergency, justifying for increased state control over virtual currencies. The dissertation first presents an overview of this question to subsequently sketch out a theoretical framework based on a critical approach to security. It then considers patterns and methods of terrorist financing to help situate virtual currencies in this context, arguing that some of the alleged benefits offered by this technology are limited. In consequently considering the case of ISIL, it determines that the organisation’s current financing needs are best served by their established methods and not virtual currencies. The final section then returns to the question of security, showing that a number of practices have resulted in the gradual securitisation of this technology, and advocating for its de-securitisation, or its negotiation in the political realm and not one defined by the logic of emergency.

Within the last decade, there have been a proliferation of crypto (virtual)currencies and increasing consumer confidence accompanied by more acceptability by a growing number of merchants. This means cryptocurrencies are shifting from niche legal tenders to the mainstream financial sector.
However, virtual currencies are largely unregulated as most governments have not yet developed regulations to govern them. Also, there is the issue of cryptos becoming potential safe havens for cybercriminals, organized criminal syndicates, and terrorists who want to remain under the radar of the governments. The main feature which attracts these rogue actors is anonymity – the ability to conduct financial transactions without being detected.
Traditional banking institutions collect a lot of personal information – names, addresses, guarantors, occupations, purpose, relationships, dates of birth, identification numbers, which are
valuable when tracking down a criminal group or tracing payments made to terrorist organizations.
Thousands of cybercriminals have been identified, arrested, or publicly shames thanks to the tracing of banking information. Unfortunately, virtual currencies eliminate these requirements, thereby providing a blanket of cover for overt criminals on the open Internet and covert actors on the dark web. This problem is exacerbated by the fact there is a significant increase in the number of digital payments as opposed to paper transactions the world over. Many people are becoming more comfortable with the digital economy – online buying, selling, and payments.
On the other hand, cryptocurrencies pose multiple issues. Sanctions imposed against adversarial nations (Iran, North Korea, Venezuela) could be circumvented using cryptos; criminals
are increasingly opting for cryptos, and there is volatility in the valuation of cryptos. Thus, how does a government regulate these unstable tenders?
The research will be designated in the below format outlining the focus of each chapter. As an overview, there will be an introduction to the topic areas, then followed by the Methodology of how the research will be conducted, followed by Qualitative/Quantitative Analysis with real-world examples, ending with a Research Findings/Conclusion chapter.
The thesis will focus on both academic theory and applicable analysis for a better understanding of how Cryptocurrencies could take center stage in world finance in the future if so, these virtual currencies need to be regulated in a manner that protects the National Security of nations. On the other hand, if the research finds out Cryptos are impossible to regulate and will remain the bread-and-butter of criminal syndicates, then appropriate recommendations will be made after this study. The goal is to keep the study academically honest, void of biases, or any external influences. Where these may exist, the author will highlight the extent to which the results
might be affected.
The relevance of this project depends on the reader’s point of interest, whether for further
research, as a government official, an investment or financial expert, a Nation Security expert, and for curious readers. The thesis is focused almost entirely on the Homeland Security and National
Security implications of Cryptocurrencies are not necessarily the Blockchain technology that forms
the basis of virtual currencies. This should give clear guidelines for the audience on the peculiarities of this research.

Keywords: Research Format, Research Focus, Research Relevance, Research Audience, Cryptocurrencies, Virtual Currencies, Rogue Actors, Adversaries, Regulation

Course description
This course will explore the legal developments of the global monetary architecture and look into the political and economic rationales that underpin the practices of the international monetary law. The course will help students acquire the analytical tools needed to understand and critically reflect on the changes in the multilateral system, notably in the aftermath of the 2008 crisis.
The focus of this course is on how relations of monetary power are legally and politically re-configured over time, and how this process of institutional design is currently reshaping the global governance of money. We will cover (1) the legal foundations of the international monetary system and the international money (i.e., global currencies, the legal design of the eurocurrencies, and the challenges posed by virtual currencies); (2) the roles and evolving responsibilities of the International Monetary Fund (IMF), as well as the main political and economic challenges to the development of the Fund’s mandates; and (3) the legal forms of monetary cooperation at bilateral and regional levels (e.g., currency swaps between central banks; the Chiang Mai Initiative Multilateralization - CMIM; the BRICS Contingent Reserve Arrangement - CRA).
The international monetary architecture has remained relatively stable since the establishment of the Bretton Woods institutions. In the 1940s, international monetary governance was assigned to the IMF. Since its creation, the Fund's responsibilities evolved along with significant changes in the financial system. However, it has maintained its governance structure relatively stable regarding the predominance of traditional powers in the decision-making process and the unique role assigned to the US dollar at the global level.
In the last three decades, however, monetary governance structures have not kept pace with the significant shifts that occurred in the global economic balance of power. Moreover, the 2008 crisis posed new challenges on how international money, supported by global private legal arrangements (i.e., the eurocurrencies), can be managed and backstopped by national public authorities. The last years have seen the emergence of new institutional arrangements supported by national central banks, which became the leading public actors of this evolved financial arena. Concurrently, different legal forms of cooperation have been designed by Europe and the largest emerging countries in Asia. All these bilateral and regional arrangements are reshaping the global monetary architecture.

This paper will evaluate the effectiveness of different virtual currency regulatory approaches in combating money laundering activities. The objective behind this evaluation is to determine the most suitable AML regime for virtual currencies. The limitations of these approaches is used create an enhanced AML regime that eliminates these weaknesses. This paper has determined that the current risk of virtual currencies pose on financial markets require the implementation of a regulatory framework that will assist in mitigating them. It was also concluded that regulatory collaboration with virtual currency platforms will significantly enhance the AML regime. This collaboration will assist in regulating decentralised virtual currencies, which is the main challenge experienced by the existing regulations. In addition, the effectiveness of regulation is dependent on international harmonization. Only a uniform international AML regime will be successful in combating money laundering activities through virtual currencies.

The paper stems from a greater project on economic history concerning the monetary system and policies of medieval and renaissance Venice, with a special focus on Venice’s colony of Crete. The Venetian monetary system included various currencies, both minted and virtual, and it was intertwined with the currencies that already existed or appeared in the Eastern Mediterranean during the Venetian imperial era. I examine actual historical examples through the lenses of both mainstream and heterodox monetary theories in order to show the complexity of monetary practices under real conditions and how the available monetary theories need further sophistication in order to explain and systemize our understanding of monetary phenomena.

To make the research inquiry clearer, I focus on two examples that seem to run counter to what current assumptions about monetary structures:
One case is that of the Byzantine yperpyron, a golden coin of the Eastern Roman Empire which seems to survive in Crete island, both the Venetian rule (starting in early 13th century) and the end of the Byzantine Empire itself (in 1453) and remained in circulation, mostly as a virtual currency or accounting unit, until 17th century, together with various other currencies circulating in the island.

The other case is the Venetian ducat itself, a golden coin minted by Venice from late 13th century onwards and well known for its quality of gold and value in international trade in both Mediterranean and Europe. Yet, it seems that the Venetians preferred to use other international currencies in domestic trade. There has been evidence that in some cases the never-debased golden ducat was not accepted in local transactions.

The paper attempts to set the grounds for further investigation and discussion concerning monetary phenomena and the issues those raise for monetary theory.

Keywords: Venice, Crete, monetary history, yperpyron, ducat, monetary theory
JEL Codes: B50, E42, N13, N23, P4, P5.

“Blockchain” is the word on the street these days, with every significant financial institution, from Goldman Sachs to Nasdaq, experimenting with this new technology.  Many say that this remarkable innovation could radically transform our financial system, eliminating the costs and inefficiencies that plague our existing financial infrastructures, such as payment, settlement, and clearing systems.  Venture capital investments are pouring into blockchain startups, which are scrambling to disrupt the “quadrillion” dollar markets represented by existing financial market infrastructures.  A debate rages over whether public, “permissionless” blockchains (like Bitcoin’s) or private, “permissioned” blockchains (like those being designed at many large banks) are more desirable.

Amidst this flurry of innovation and investment, this paper inquires into the suitability of the Bitcoin blockchain to serve as the backbone of financial market infrastructure, and evaluates whether it is robust enough to serve as the foundation of major payment, settlement, clearing, or trading systems. 

Positing a scenario in which the Bitcoin blockchain does serve as the technology enabling significant financial market infrastructures, this paper highlights the vital importance of functioning financial market infrastructure to global financial stability, and describes relevant principles that global financial regulators have adopted to help maintain this stability, focusing particularly on governance, risk management, and operational risk.

The paper then moves to explicate the operational risks generated by the most fundamental features of Bitcoin: its status as decentralized, open-source software.  Illuminating the inevitable operational risks of software, such as its vulnerability to bugs and hacking (as well as Bitcoin’s unique 51% Attack vulnerability), uneven adoption of new releases, and its opaque nature to all except coders, the paper argues that these technology risks are exacerbated by the governance risks generated by Bitcoin’s ambiguous governance structure.  The paper then teases out the operational risks spawned by decentralized, open-source governance, including that no one is responsible for resolving a crisis with the software; no one can legitimately serve as “the voice” of the software; code maintenance and repair may be delayed or imperfect because not enough time is devoted to the code by volunteer software developers (or, if the coders are paid by private companies, the code development may be influenced by conflicts of interest); consensus on important changes to the code may be difficult or impossible to achieve, leading to splits in the blockchain; and the software developers who “run” the Bitcoin blockchain seem to have backgrounds in software coding rather than in policy-making or risk-management for financial market infrastructure.

The paper concludes that these operational risks, generated by Bitcoin’s most fundamental, presumably inalterable, structures, significantly undermine the Bitcoin blockchain’s suitability to serve as financial market infrastructure.

Government officials and stakeholders in the financial industry trying to counter transnational terrorist financing face a wicked problem.  This problem is ill-defined, with multiple causes and uncertainty on whether the solutions implemented to combat this threat are effective.  It is a problem further complicated by the convergence of globalization, digitalization and introduction of disruptive financial technologies, which further enables distributed terrorist financing.

Government and financial industry stakeholders should accept transnational terrorist financing as a wicked problem, as this can help foster development of a strategic mindset focused on more effective CTF resolutions.  This will require a continuous effort on the part of all stakeholders, with hard, but necessary, choices around risk tolerance and the restoration of trust and confidence.

Convenience and security are the two sides of same coin in case of every online transaction and many a time, convenience wins over the security. Bitcoin, a crypto-currency, created virtually, introduced as open source software by Mr. Satoshi Nakamoto (pseudonym, real identity unknown), is being compared to replace the present currency system of the world wherein each country has its own currency, thus putting the limitations in terms of cross country transactions, and high transaction expenses due to involvement of several payment gateway mechanisms. Bitcoin came in picture after financial crisis of 2008 and emerged at supersonic speed especially after 2012 despite continued attacks by hackers on Bitcoin trading exchanges & e-wallets and currency being called as Ponzi scheme by prominent economists.

The scope of this article is to examine the positive (bright) and negative (dark) aspects of virtual currencies by critically assessing the relevant literature. In addition, the findings from the bright and dark side are the groundwork for the discussion of how crime prevention units and financial supervisors addressed to specific issues with virtual money. On the bright side, virtual currencies can provide a reasonable level of privacy but are not fully anonymous. Second, the academic discussion about the price stability of Bitcoins is split into two opposing groups. Critics find that the decentralised feature of virtual currencies is a significant disadvantage of the technology because it seriously reduces the flexibility to respond to economic shocks. In contrast, supporters argue that centralised operations by monetary authorities are actually inducting financial instability. Third, virtual currencies charge in overall less fees for payments and achieve similar processing speed compared to electronic payment systems. On the dark side, virtual currencies mainly operate outside the banking system and do not endanger the global financial stability at this stage of development. Second, technical improvements in the technology could increase consumer protection similar to established payment services. Finally, the lack of physical contact provides more options for money laundering and tax evasion than traditional ways do. In conclusion, the global legislation is still hesitant to implement a robust regulatory framework. As such, the effect of the recent legislation by crime prevention units and financial supervisors remains toothless.

In recent years, all cryptocurrencies have experienced a rapid increase in value and a new high demand for cryptocurrencies. Supported by the fact that regulators, international corporations and investors are enthusiastic about the future of cryptocurrencies. And paying close attention to rapid advances in technology, thinking that Bitcoin will contribute to financial development. But the breadth of growing Bitcoin and other cryptocurrencies has fueled fear, and has also garnered more attention to its increasing influence, as wildly fluctuating values increase the negative effects of technology on the economy and the governance challenges of Bitcoin. Throughout this review, we are attempting to reflect on the economic consequences of Bitcoin and to find a reasonable way to estimate the financial market of Bitcoin in the light of its non-linear conduct. Making the behavior volatile, non-linear and unpredictable by adding Auto Regressive Conditional Heteroskedasticity (ARCH/GARCH) model and autoregressive integrated moving average (ARIMA) model to the area of expert structures, forecasting and modeling as linear models for forecasting. And Artificial Neural Networks (ANN) model as a non-linear model with better performance in forecasting. we found that nonlinear model (ANN) outperform linear models (ARIMA and ARCH/GARCH). And consequently, the effective role of ANN model to improve the bitcoin capital market forecasting. JEL Classification: G15, E47

In this Commons Transition Special Report, George Dafermos documents the organizational model of one of the most interesting cooperative projects to have emerged in Europe in the age of crisis – the Catalan Integral Cooperative (CIC).
Founded by an assembly of activists in Catalonia in 2010, the CIC’s revolutionary aspiration is to antagonize Capital by building cooperative structures in the Catalan economy. Its commitment to the principles of the Commons, Open Cooperativism and P2P, make it a prototypical example of a new generation of co-ops connecting the Commons and cooperative movements. Their position is that a truly collaborative economy can only develop when it’s commons-based.

Permissionless blockchains have been described as a novel institutional building block for voluntary economic exchange, with unique protocol features such as automated contract execution, high levels of network and process transparency, and uniquely distributed governance. We argue that conventional institutional economics analysis of blockchain networks is incomplete absent a more robust application of descriptive polycentric analysis. Though the distributed governance that permissionless blockchain protocols provide is novel, these networks nonetheless require ongoing coordination between stakeholders and are subject to competitive pressures much like other private organizations pursuing similar goals for a set of users who can choose among providers. We characterize change on blockchain networks as resulting from internal sources and external sources. These internal sources include constitutional (protocol) design and the related need for collective choice processes to update protocols. In addition to law and regulation, competitive pressure is itself a critical external source of governance. Predominantly through analysis of two leading cryptocurrency networks, Bitcoin and Ethereum, we illustrate how conceptualizing of blockchain as a polycentric enterprise enhances our predictive and descriptive understanding of these networks.

Published in the Journal of Risk and Financial Management, vol. 14.

This paper examines the persistent food shortages in the island of Crete under Venetian rule (1204–1669) through the prism of the monetary system of Venetian territories and in combination with the other economic policies of the Venetian empire. From the available sources and analysis, it seems that the policies of Venice which prioritised the food security of the metropolis, the financial support to the elites, and the elite-favouring monetary and taxation system were contradictory and self-defeating. In particular, the monetary structure of the colonial economy and the taxation system seem to have been forcing both Cretans and Venetian settlers to produce wine for export instead of grain
despite the repeated food shortages. The parallel circulation of various high-value (white money) and low-value (black money) currencies in the same economy and the insistence of the Venetian administration to receive taxes in white money seems to have been consistently undermining the food security policy adopted by the same authorities. The paper contributes to the discussion of how parallel currencies can stabilise an economy or can create structural destabilisation propensities, depending on coeval economic structures that usually go unexamined when we examine monetary instruments.

Keywords: parallel currencies; black money; white money; Venice; Crete; food security

The authors focus on identifying possible forms of expressing the legal nature of virtual (digital) currencies, respectively crypto-assets and want to determine the effects of different ways of expressing the legal nature of virtual (digital) currencies, respectively crypto-assets for their taxation in the Slovak Republic. In addition, the paper deals with the identification of current legislation on the issue of taxation of virtual currencies in the field of direct taxation and indirect taxation in the Slovak Republic and the goal is the synthesis of basic theoretical-legal and legal-application  hortcomings of current legislation, even in the context of the case law of the Court of Justice of the EU.

Money Laundering is a kind of financial crime that converts proceeds of crime and further disguises the illicit origin of money brought in the economic system of a State. The scope of money laundering is extensive especially conceived as in recent times by taking into account the emerging challenges arising from digital technologies being used in deriving the illegal sources of money and integrating it back to the financial resources of the states. The article aims to analyze on the prevalence of money laundering in the United Kingdom by dealing with the emerging issues confronted by it in this digital age of technology. The article recognizes how new aspects of this economic crime are being created by abusing digital technology through internet and social media and emphasizes on the current AML legal framework in the United Kingdom .

In our highly connected world, the number of digital transactions is growing, and so too are the myriad of digital platforms that enable these transactions. While the dominant perspective on developing digital payment platforms involves implementing an efficient, low cost, and secure transfer of value, in this chapter, we take a step back to reexamine how digital transactions are embedded in social relationships, and that by focusing solely on the transfer of value, it is possible to miss opportunities for social interactions in digital transactions. We examine the affordances of digital transactions to illustrate possibilities for action, opportunities for interaction, and the roles of negotiation and intermediation within digital transactions. We then highlight some social impacts of digital transactions and its associated data generation , its embeddedness alongside other available forms of transaction, and the ways in which the digital world conflates money with payment systems.

The goal of this paper is to explain the needs and advantages of creating a government backed crypto-currency with a fixed exchange rate to the US dollar or the value of the International Monetary Fund’s Special Drawing Rights (SDR).  The development of crypto-currency has proven there is a market demand for a method of quickly transferring value without the use of the traditional banking system.  A government that is able to meet the market demand for Crypto-Currency (CC) by supplementing its currency with a centrally manged crypto-currency, with a fixed value to its own currency or the SDR, has the potential to increase the use of its currency as a global reserve and consumer currency, centrally monitor transactions running on its network, stabilize the value of the currency, and create more sophisticated and secure uses for crypto-currency. Further analyses is required to understand the regulatory, organizational, and technological requirements needed to implement a Government-Backed Crypto-Currency (GBCC); however, this paper intends to layout a general hypothesis on the economic and regulatory advantages of creating a GBCC.

Institutional economists have analyzed permissionless blockchains as a novel institutional building block for voluntary economic exchange and distributed governance, with their unique protocol features such as automated contract execution, high levels of network and process transparency, and uniquely distributed governance. But such institutional analysis needs to be complemented by polycentric analysis of how blockchains change. We characterize such change as resulting from internal sources and external sources. Internal sources include constitutional (protocol) design and collective-choice processes for updating protocols, which help coordinate network participants and users. External sources include competitive pressure from other cryptocurrency networks. By studying two leading networks, Bitcoin and Ethereum, we illustrate how conceptualizing blockchains as competing and constitutional polycentric enterprises clarifies their processes of change.

Modern exchange theories model a large market, but do not explain single exchange. The paper considers the phenomenon of single exchange and formulates the general exchange problem in the form of a system of two equations, subjective and objective. Subjective equilibrium is given by the Walras-Jevons marginal utility equation. Objective equilibrium equations by Walras and Jevons are averaged over all transactions in the market and can only give a rough general picture without explaining the specific price of an individual exchange. An exchange micro-condition must be found that, when averaged, will give the Walras market equilibrium macro-condition. The study of the internal structure of exchange leads to the need to consider power. The concept of generalized power is introduced. It is generalized power that serves as the primary comparable and measurable objective basis of exchange. The power theory of exchange provides the objective price-equation. It is demonstrated that money is a measure of generalized power in exchange and a certification of generalized power in subsequent exchanges. The proposed theory is able to uniformly explain any exchange, including a single one, which is impossible with the existing theories of exchange.

New  technologies  always  pose  a  challenge  for  rigid  legal  regulations.  The  law  is  often  not adapted  to  the  pace  of  technological  advancements  of  society  and  the  socio-economic  changes which  result  due  to  new  technology.  Smart  contracts,  which  are  decentralised  applications implemented  on  a  Blockchain  platform,  use  if/then  logic  to  create  self-executing,  selfenforcing  and  state-contingent  contracts,  where  ‘this’  and  ‘that’  are  predetermined  by  the  smart contract’s  author. Considering  its  novelty  as  a  concept,  a  relatively  small  body  of  literature  has  sought  to investigate  the  law  in  relation  to  smart  contracts,  rather  than  the  more  general  blockchain phenomenon.  Specifically,  however,  there  is  an  apparent  desire  amongst  scholars  and professionals  in  this  field  that  wish  to  come  to  a  consensus  on  whether  legal  jurisdictions  should pave  the  way  for  specific  legal  rules  which  regulate  smart  contracts  or  whether  smart  contracts’ enforceability can be  aligned with the  existing traditional  principles  of contract  law.  This  study  incorporates  an  analysis  of  the  main  thread  of  arguments  and  discussion  regarding smart  contracts  which  seem  to  be  whether  or  not  they  are  contracts  in  the  legal  sense,  whether they  are  a  disruptive  innovation  in  the  legal  system  and  what  their  benefits  and  potential  threats are.  It  will  then  seek  to  provide  a  separate  analysis  of  the  English  law  of  contract  and  the Maltese  law  of  contract.  This  will  be  fundamentally  important,  not  just  because  the  definitions vary,  but  also  because  the  former  is  based  on  case-law  while  the  latter  is  based  on  written  law. The  conclusion  reached  is  that  traditional  contract  law  remains  relevant  in  most  transactions even  if  they  are  entirely  structured  by  way  of  smart  contracts,  and  the  author  ultimately concludes  that  where  a  smart  contract  carries  all  the  indicia  of  a  traditional  contract,  it  would be  deemed to be  legally valid and enforceable  in terms  of law.