Digital Money Foundations
Digital money and tokenisation are often discussed in terms of technological possibility. This series asks a narrower economic question: when does blockchain or tokenisation add marginal value compared with existing financial instruments, schemes and infrastructures?
The notes examine digital money through moneyness, liquidity, settlement, intermediation, governance, public policy and market coordination.
The economic rationale of blockchain
Economics Advisory,
Blockchain’s distinctive contribution lies in governance and infrastructure economics. Its relevance depends on where it enters the financial transaction stack and whether its marginal benefit exceeds the cost and complexity of adding another layer to the financial system.