20 PagesPosted: 19 Apr 2018
Date Written: April 9, 2018
Abstract
Cryptocurrencies have entered the economy as alternative money, as speculation objects, and as utility tokens for innovative service-platforms. Cryptocurrencies are increasingly scrutinized by regulators, and the literature on the regulation of cryptocurrencies is emerging. In this paper, it is asked how regulatory efforts may interfere with the core of the cryptocurrencies – their protocols as enforced by the decentralized operators. It is found that regulations are likely to induce protocol changes by interfering with the operators' choices. Regulation may induce the development of regulatory-compliant cryptocurrency protocols, but also protocols specially designed to circumvent regulation.
Keywords: Blockchain, Cryptocurrencies, Financial Regulation, Regulation, Payment Systems
JEL Classification: G28, K22, L51, E42
Suggested Citation:Suggested Citation
Østbye, Peder, Will Regulation Change Cryptocurrency Protocols? (April 9, 2018). Available at SSRN: https://ssrn.com/abstract=3159479 or http://dx.doi.org/10.2139/ssrn.3159479
Peder Østbye (Contact Author)
Norges Bank ( email )
P.O. Box 1179
Oslo, N-0107
Norway
