Abstract
Bitcoin—the first virtual currency based on blockchain technology—was born out of an anarcho-libertarian dream to create a monetary system that—by relying on ‘trustless trust’—would be completely independent of the state and established financial institutions. Today, there is no doubt that blockchain technology will transform payments, the financial industry, and many other areas. However, this chapter argues that in regard to payments, this transformation will be far from the libertarian ideal. Rather, blockchain will enable the rise of new powerful intermediaries and it will be embraced by established payment services providers, who will use blockchain to modernize their services. As a result, decentralized virtual currencies like Bitcoin will remain on the periphery of the mainstream payments landscape.
| Original language | English |
|---|---|
| Title of host publication | Regulating Blockchain |
| Subtitle of host publication | Political and Legal Challenges |
| Editors | Philipp Hacker, Ioannis Lianos, Georgios Dimitropoulos, Stefan Eich |
| Place of Publication | Oxford |
| Publisher | Oxford University Press |
| Chapter | 14 |
| Pages | 259-274 |
| Number of pages | 26 |
| ISBN (Print) | 9780198842187 |
| Publication status | Published - 2019 |
Keywords
- Bitcoin
- blockchain
- virtual currency
- cryptocurrency
- cryptocurrency intermediaries
- money
- payment systems