The Impact of Digital Currency on Monetary Policy

• Main Authors: Sung, Hsu-Kuo, 宋序國
• Other Authors: Yu, Min-Teh
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/g93dcf

碩士 === 國立交通大學 === 財務金融研究所 === 105 === In the face of the development of digital currency, whether in the form of the decentralized private currency or central bank issued fiat money, networked computational transformation will become the mainstream of the currency innovation in the future. Especially when most applications are designed in the concept of decentralized mechanism, the traditional intermediary functions of commercial bank will be challenged greatly, thus affecting the effect of monetary policy of central banks and furthermore impacting on the country’s money supply and demand, the direction of interest rate and stability of inflation. By starting with classifying and defining the types of digital currency, next analyzing its characteristics, principles, techniques and empirical market data, finally exploring different central banks’ policy orientation about digital currency, the purpose of this paper is to analyze the feasibility of the replacement of legal tender by decentralized digital currency and finally to examine the impact of the cryptocurrency on central bank’s monetary policy. We think that the decentralized digital currency can’t replace legal tender and circulates only in limited scope as a complementary tool of cash. In general, decentralized digital currency has negative impacts on monetary policy, such as weakening the effectiveness of monetary policy instruments, reducing the accuracy of monetary aggregates, weakening the supervisory capacity of the payment system and damaging the seigniorage income, but has a positive impact on improving the efficiency of currency circulation.