CRYPTO-CURRENCIES - AN INTRODUCTION TO NOT-SO-FUNNY MONEYS

We introduce the distributed ledger (blockchain) technology of crypto-currencies. We examine the 'monetary' attributes of crypto-currencies, and describe some of the reasons they have been adopted. The paper discusses the mechanics of Bitcoin - the original crypto-currency - to illustrate the fundamental elements of decentralized crypto-currencies. We then provide a high-level summary of the implications of crypto-currencies for consumers, financial systems, and for monetary and regulatory authorities. We argue that crypto-currencies are unlikely to supplant traditional fiat currencies and we anticipate an enduring role for financial intermediaries in facilitating credit.