ABSTRACT
This chapter discusses how monetary systems can be more democratically accountable and the role of bitcoin in the de-monopolization of money creation by central and commercial banks. Inflation, the debasement of money, currency depreciation and monetary confiscations are examined as well as the evolution of money from commodity-based systems to fiat money and cryptocurrencies. The functions and properties of money under alternative monetary systems including seigniorage are discussed along with international monetary arrangements in terms of their advantages and costs for advanced economies and developing nations and emerging economies. The chapter presents the emergence of bitcoin and its potential for monetary autonomy, privacy and financial inclusion. The debate about rules versus discretion in monetary policy is examined as is the rationale and experience of autonomous central banks that seek to delink the conduct of monetary policy from the general democratic process.
