Opinion: The existence of cryptocurrencies has an impact on government finances and regulatory policies

New York University School of Law Max Raskin, McGill University Fahad Saleh, and New York University Stern School of Business David Yermac recently published a paper pointing out that the existence of bitcoin-like decentralized cryptocurrency has had a good impact on government fiscal and regulatory policies. . First, citizens receive welfare gains through the existence of cryptocurrencies because they offer diversified choices; in addition, private digital currencies, as a local investment competition, can generate lower inflation by suppressing monetary policy. Second, the author believes that cryptocurrencies encourage local investment and complement, rather than substitute for, the investment. In the process of providing alternative local laws, they will constrain monetary policy and reduce inflation again, resulting in higher return on investment, thereby increasing overall investment. Finally, the government itself benefits from allowing the use of cryptocurrencies in the local economy, as it earns income through taxation, thereby benefiting from higher levels of local investment.