TY - JOUR
T1 - Bitcoin price growth and Indonesia's monetary system
AU - Narayan, Paresh Kumar
AU - Narayan, Seema
AU - Eki Rahman, R.
AU - Setiawan, Iwan
N1 - Publisher Copyright:
© 2018 Elsevier B.V.
Copyright:
Copyright 2019 Elsevier B.V., All rights reserved.
PY - 2019/3
Y1 - 2019/3
N2 - Concerned by the volatility of Bitcoin price growth (BPG), Bank Indonesia—Indonesia's central bank—discourages trading cryptocurrencies. We examine the relationship between Bitcoin price growth (BPG) and Indonesia's monetary aggregates (inflation, real exchange rate, and money velocity). In doing so, we develop the conceptual link between Bitcoin and monetary aggregates. We find strong and robust evidence that BPG leads to inflation growth, currency appreciation, and a reduction in money velocity. Our results have policy implications for other central banks in terms of achieving stability of the monetary system if BPG is indeed a concern for those countries.
AB - Concerned by the volatility of Bitcoin price growth (BPG), Bank Indonesia—Indonesia's central bank—discourages trading cryptocurrencies. We examine the relationship between Bitcoin price growth (BPG) and Indonesia's monetary aggregates (inflation, real exchange rate, and money velocity). In doing so, we develop the conceptual link between Bitcoin and monetary aggregates. We find strong and robust evidence that BPG leads to inflation growth, currency appreciation, and a reduction in money velocity. Our results have policy implications for other central banks in terms of achieving stability of the monetary system if BPG is indeed a concern for those countries.
KW - Bank Indonesia
KW - Bitcoin
KW - Monetary aggregates
KW - Volatility
UR - http://www.scopus.com/inward/record.url?scp=85057412806&partnerID=8YFLogxK
U2 - 10.1016/j.ememar.2018.11.005
DO - 10.1016/j.ememar.2018.11.005
M3 - Article
AN - SCOPUS:85057412806
SN - 1566-0141
VL - 38
SP - 364
EP - 376
JO - Emerging Markets Review
JF - Emerging Markets Review
ER -