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Full-Text Articles in Finance and Financial Management
Redefining Banking Through Defi: A New Proposal For Free Banking Based On Blockchain Technology And Defi 2.0 Model, Francesco Spinoglio
Redefining Banking Through Defi: A New Proposal For Free Banking Based On Blockchain Technology And Defi 2.0 Model, Francesco Spinoglio
Journal of New Finance
This article aims to offer a new free banking proposal with a 100% cash ratio that uses the DeFi 2.0 model. The current monetary system, based on Central Banking with fractional reserve, has created a huge debt spiral and has distorted the entire production system, which produces deep recurring socioeconomic crises that increasingly impoverish citizens. This paper presents an innovative proposal that aims to take advantage of blockchain technology using the Defi 2.0 model. It would be a first attempt to merge centralized finance with the DeFi world, laying the foundation for a fairer and more decentralized monetary society.
Cryptocurrency, Decentralized Finance, And The Evolution Of Money: A Transaction Costs Approach, James L. Caton Jr, Cameron Harwick
Cryptocurrency, Decentralized Finance, And The Evolution Of Money: A Transaction Costs Approach, James L. Caton Jr, Cameron Harwick
Journal of New Finance
We leverage a transaction costs narrative to provide a theoretically unified presentation of the evolution of exchange, with the latest evolutionary frontier being cryptocurrency and decentralized finance. We show that with each new development in the evolution of money, the new form or medium of exchange must reduce transaction costs relative to relevant alternatives. The development of blockchain and cryptocurrency reduced the cost of transferring currency by removing the need for a trusted third party to intermediate funds while also providing the benefit of anonymity/pseudonymity. Likewise, decentralized finance does not require a third party to intermediate savings and investment and …