Impacts of Financial Innovations in an Open Economy and Implications of Blockchain Technology

Satoshi Nakamoto announced the white paper of bitcoin, "Bitcoin: A Peer-to-Peer Electronic Cash System," which embodies ideas of the distributed ledger in October 2008 and based on the ideas, the first bitcoin was mined in March 2009. Since then, there have been vast on-going discussions w...

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Bibliographic Details
Published in:Policy File 2018
Main Authors: An, Sungbae, Kim, Hyosang, Shin, Kotbee, Jang, Huisu, Kim, Jisu
Format: Report
Language:Korean
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Korea Institute for International Economic Policy
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Summary:Satoshi Nakamoto announced the white paper of bitcoin, "Bitcoin: A Peer-to-Peer Electronic Cash System," which embodies ideas of the distributed ledger in October 2008 and based on the ideas, the first bitcoin was mined in March 2009. Since then, there have been vast on-going discussions whether bitcoin can be used as a means of exchange like fiat money. Meanwhile, the price of bitcoin skyrocketed in 2017, so bitcoin and other crypto-assets made a splash on public interest with a lack of legal regulations. Governments worried the overheated market that could become a bubble and tried to impose regulations for market soundness. With the recent development of fintech and the emergence of the fourth industrial revolution, it is difficult to separate the impact of the blockchain technology as financial innovation in the current discussions. This research report summarizes the economic effects of financial innovations in retrospect and examines the blockchain technology considered as a part of financial innovation.