Professor Michael Mainelli, Matthew Leitch, and Dionysios Demetis
Journal of Financial Transformation, Number 47, Capco (April 2018), pages 89-100.
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Cryptocurrencies have the potential to become effective currencies that give a higher level of macroeconomic control, thanks to the information that is available about holdings and transactions, and the potential for automated control mechanisms. However, these cryptocurrencies need to be designed properly and tested before launch. This paper reports the early results of an economic model that simulates a variety of behaviors by economic agents and some simple control mechanisms. An economic simulation model is likely to be a valuable tool in developing effective cryptocurrency systems and interacting with regulators.