On blockchains, cryptos, and media of exchange. Not there (yet)

Abstract

Ever since the inception of the blockchain technology and bitcoin (Nakamoto, 2009), the first and foremost of so-called cryptocurrencies, the prospect within the 'crypto' community has been one of growing decentralisation and an impending threat to traditional monetary policy and its legal monopoly. Here we discuss the potential use of bitcoin and other competing 'cryptos' as media of exchange and argue that we are still far from seeing a dethroning of major currencies, in spite of the undermining effect that cryptos might have on monetary policy and central banking.