ABSTRACT
Cryptocurrencies are one of the most interesting phenomena on the recent history of finance. The idea of a self-regulating mechanism to issue and manage the fundamental pillar of finance – money – is fascinating. However, the lack of a central authority involves even a lack of responsibility about the functioning of the system. Moreover, the monetary theory shows how the amount of money in a financial system is able to affect its functioning, with the need of monetary authorities and monetary policies. This chapter addresses the behaviors of central banks toward cryptocurrencies and blockchain technology. It describes how different central banks are trying to figure out if and how the threats of cryptocurrencies can turn into an opportunity to evolve the concept of money, taking benefit of the new technologies, without dismantling the functioning of the monetary systems. The Analysis of Central Bank Digital Currencies (CBDC) includes the ECB project of a digital Euro, the point of view of the Fed, and the approach of the Chinese government.
