Central bankers and mainstream monetary economists have become intrigued with the idea of reducing, or even entirely eliminating, hand-to-hand currency. Yet the arguments for phasing out cash or confining it to small denomination bills are, when not entirely mistaken, extremely weak. In a new paper, Cato scholar Jeffrey Rogers Hummel argues that proponents of restricting cash appreciably oversell any advantages and ignore or understate the severe disadvantages.
In less than a decade, cryptocurrencies have moved from the fringes of financial market activity to a $300 billion asset class traded on exchanges and owned by mainstream investors. Yet a great deal of regulatory uncertainty still surrounds cryptocurrencies. A new paper from Cato scholar Diego Zuluaga discusses how cryptocurrencies fit established regulatory practice, and proposes a framework to provide greater regulatory certainty to market participants and enable the growth of this new technology while fulfilling the policy objectives of the relevant regulatory agencies.