Distributed Ledger Technology and the Future of Money and Banking: Banking is Necessary, Banks Are Not. Bill Gates 1994

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Abstract

Nakamoto, S. (2008). Bitcoin: A peer-to-peer electronic cash system.
https://bitcoin.org/bitcoin.pdf outlined an alternative to the current monetary
system in which banks are replaced by a peer-to-peer system to issue and transfer
digital money: the Bitcoin. While Bitcoin has attracted a substantial investment
volume, the system has not achieved the status of a viable alternative monetary
system. However, the distributed ledger technology (DLT) underlying the payment
system is being applied successfully by financial institutions and is likely to have
important implications for the future of money and banking. In this paper we
therefore focus on the most advanced distributed ledger application in the
financial industry: R3 Corda. This paper is structured as follows. In the first section,
we relate the debate about systems of money creation to the rise of Bitcoin. Next,
the development of R3 Corda is discussed and the lessons learned for monetary
reform. We conclude with an assessment of the scope and likelihood of monetary
reform as a consequence of DLT applications by central banks.
Original languageEnglish
Article number20190095
Pages (from-to)1-37
Number of pages37
JournalAccounting, Economics, and Law
Volume1
Issue number1
Publication statusPublished - 4 Jan 2021

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