F ei as, Luís Ped o; Ce dei a, Jo ge; Lou enço, Diogo
A icle
Hayekian hu dles: Challenges o c yp ocu ency as a iable
basis o a new mone a y o de
Economies
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Sugges ed Ci a ion: F ei as, Luís Ped o; Ce dei a, Jo ge; Lou enço, Diogo (2025) : Hayekian hu dles:
Challenges o c yp ocu ency as a iable basis o a new mone a y o de , Economies, ISSN
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Recei ed: 31 Oc obe 2024
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Published: 7 Janua y 2025
Ci a ion: F ei as, L. P., Ce dei a, J.,
& Lou enço, D. (2025). Hayekian
Hu dles: Challenges o
C yp ocu ency as a Viable Basis o a
New Mone a y O de . Economies,
13(1), 12. h ps://doi.o g/10.3390/
economies13010012
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A icle
Hayekian Hu dles: Challenges o C yp ocu ency as a Viable
Basis o a New Mone a y O de
Luís Ped o F ei as 1, Jo ge Ce dei a 2,3,* and Diogo Lou enço 3
1Facul y o Economics, Uni e si y o Po o, Rua D . Robe o F ias s/n, 4200-464 Po o, Po ugal
2IS-UP, Facul y o A s and Humani ies, Uni e si y o Po o, Via Pano âmica s/n, 4150-564 Po o, Po ugal
3CEF.UP, Facul y o Economics, Uni e si y o Po o, Rua D . Robe o F ias s/n, 4200-464 Po o, Po ugal
*Co espondence: jce [email p o ec ed]
Abs ac : The ise o c yp ocu encies o e he pas decade has p omised o challenge he
dominance o ia money sys ems and eshape mone a y policy. Howe e , ecen de el-
opmen s, including ma ke ola ili y and he collapse o key exchanges like FTX, ha e
e oded public us , aising skep icism o a easible ansi ion o a c yp o-based mone a y
sys em. This pape explo es why c yp ocu encies ha e no me he expec a ions o hei
p oponen s, pa icula ly hose who saw hem as a s ep owa ds F ied ich Hayek’s ision
o compe i i e cu ency issuance. While c yp ocu encies e lec some aspec s o Hayek’s
model, hei ins abili y—especially in Bi coin-like asse s—unde mines hei ole as a eli-
able al e na i e o ia money. The pape also conside s how cen al bank independence
and egula o y gaps u he hinde he de elopmen o a obus c yp ocu ency amewo k.
Despi e he con inued ele ance o Hayek’s ideas in oday’s mone a y landscape, he en-
enched s uc u es o mode n cen al banks and he ise o Cen al Bank Digi al Cu encies
sugges ha a decen alised cu ency o de emains unlikely in he nea u u e.
Keywo ds: c yp ocu encies; Hayek; cu ency compe i ion; cu ency adop ion; mone-
a y e olu ion
1. In oduc ion
In ecen yea s, he landscape o money c ea ion and mone a y policy appea s o be
unde going one o he mos signi ican changes since he widesp ead adop ion o ia money
egimes. C yp ocu encies ha e g own in impo ance bo h in he po olios o indi iduals
and in he minds o policy-make s, eme ging as a challenge o ex an ins i u ions (Ad ian &
Mancini-G i oli,2019). Howe e , despi e ea ly op imism, ecen de elopmen s—including
sha p mo emen s in ma ke alue and he collapse o majo exchanges like FTX—ha e led
o diminished public us , a ec ing discussions a ound he ole o digi al cu encies in he
mone a y sys em (The Economis ,2023).
This a icle posi ions he de elopmen o c yp ocu encies wi hin he b oade his o y o
money, explo ing why hey ha e no me he expec a ions o hei p oponen s, pa icula ly
hose who saw hem as a possible ealisa ion o F ied ich Hayek’s ision o mone a y
compe i ion in his in luen ial 1976 Dena ionalisa ion o Money (Hayek,1990). In his wo k,
Hayek ques ioned whe he mone a y policy should emain a go e nmen al monopoly,
p oposing an al e na i e sys em whe e p i a e banks also compe e by issuing cu encies.
While many o his con empo a ies deemed his ision u opian, his ideas ha e been b ough
o he o e when analysing he eme gence o c yp ocu encies (Bas,2020). We ind ha ,
while hese asse s embody some aspec s o Hayek’s ision—namely being a decen alised
al e na i e o go e nmen -issued money—, hei cu en o m—pa icula ly Bi coin-like
Economies 2025,13, 12 h ps://doi.o g/10.3390/economies13010012
Economies 2025,13, 12 2 o 17
asse s—su e s om a le el o ola ili y ha unde mines hei ole as a s able al e na i e o
ul illing he adi ional unc ions o money as a s o e o alue, a medium o exchange, and
a uni o accoun . S ill, we ind ha al e na i es like s ablecoins a e mo e p omising.
Fu he mo e, we also discuss he challenges posed by cen al bank independence and
he egula o y milieu, which hinde he de elopmen o a obus c yp ocu ency amewo k.
As cen al banks con inue o expand hei disc e iona y oles, we ind ha Hayek’s ideas
emain ele an , bu he en enched s uc u es o mode n mone a y sys ems sugges ha a
decen alised cu ency o de is unlikely in he nea u u e.
This a icle is s uc u ed as ollows. Fi s , we cla i y ou esea ch ques ions and ou
me hodological s a egy. Second, we p o ide an o e iew o he his o ical and ins i u ional
con ex o s a e-issued money, highligh ing he main ins i u ional and echnological changes
ha shape ou mode n unde s anding o i . We hen del e in o Hayek’s (1990) p oposal o
a compe i i e mone a y issuance sys em and i s links o c yp ocu encies. We hen p esen
a gumen s ou lining why his p oposal, in i s c yp og aphic o m, appea s imp ac ical.
Finally, we conclude by syn hesising he indings and discussing he b oade implica ions
o his esea ch.
2. Resea ch Ques ions and Me hodological S a egy
This a icle o e s a heo e ical e lec ion, g ounded in he li e a u e and suppo ed by
a selec ion o empi ical obse a ions, aiming o illumina e he con empo a y ele ance o
F. A. Hayek’s p oposal o a p i a e, compe i i e cu ency issuance sys em. I speci ically
add esses he ollowing main ques ions:
1. Do cu en c yp ocu ency ma ke s do e ail wi h Hayek’s o iginal ision o com-
pe i i e p i a e cu encies?
2. To wha ex en do exis ing c yp ocu encies mee —o p omise o mee —Hayek’s
c i e ia o s able, compe i i e cu encies?
3. How ha e ins i u ional de elopmen s since Hayek’s ime—such as he de elopmen
o cen al bank independence and ancilla y egula o y amewo ks—a ec ed he ele ance
o his p oposals?
4. Is a gene ally accep ed, decen alised, compe i i e cu ency issuance sys em mo e
easible oday han in Hayek’s day?
To add ess hese ques ions, ou analy ical ounda ion is Hayek’s Dena ionalisa ion
o Money. This wo k a icula es a concep ual amewo k ela ing cu ency adop ion and
compe i i eness o a ibu es like pu chasing powe s abili y. This amewo k is ex ended
and en iched by si ua ing he ise o c yp ocu encies in he his o y o cu encies and
by engaging wi h ecen heo e ical and empi ical li e a u e, especially illumina ing he
eal-wo ld a ibu es o digi al cu encies, like hei ola ili y, ba ie s o adop ion, and he
p esen egula o y landscape.
The analysis applies his en iched amewo k o c i ically examine p esen -day digi al
cu encies, including Bi coin-like asse s, s ablecoins, o Cen al Bank Digi al Cu encies
(CBDCs). While his s udy does no aim o de elop a quan i a i e analysis, empi ical
obse a ions a e selec i ely included o bu ess key poin s. Fo ins ance, we collec and
analyse da a on he ola ili y o a ious digi al asse s o unde sco e hei limi a ions as
s able s o es o alue.
3. F om he Age o ia Cu encies o C yp ocu encies
Unde s anding how go e nmen s ha e managed money h oughou his o y is c ucial
o g asping he con ex in which c yp ocu encies ha e eme ged and Hayek’s a gumen .
By ex ending his analysis beyond Hayek’s ime, we shed ligh on ele an ins i u ional
e o ms and echnological ad ancemen s ha ha e aken place since he 1970s. These
Economies 2025,13, 12 3 o 17
de elopmen s ha e pa ed he way o he ise o c yp ocu encies, o e ing new possibili ies
and challenges o he u u e o mone a y sys ems.
3.1. (S a e) Money P io o he Collapse o he B e on Woods A angemen s
I is unclea exac ly when money became “ he dice o poli icians” (Hayek,1999, p. 240),
bu he e is b oad consensus ha he s a e’s ole in mone a y policy has been a de ining
ea u e o mode n economies. The e is no unanimous de ini ion o money, despi e i s
c ucial ole in any mode n economy (Banco de Po ugal,n.d.). Ali e al. (2014) de ine
money as “some hing” (p. 264) ha simul aneously se es as a medium o exchange wi h
which paymen s a e made, a s o e o alue ha allows pu chasing powe o be de e ed
in o an unknown u u e da e, and a uni o accoun agains which he alue o o he i ems
is measu ed.
F om a leas he 13 h cen u y, Eu opean mone a y au ho i ies commonly decla ed
coins made o p ecious me al—namely gold and sil e —as legal ende , assigning hem a
speci ic uni o accoun alue ha was o en di e en om hei in insic alue (Redish,
1993). By he ea ly mode n pe iod, ule s had he powe o de ine he uni o accoun and
con ol he min , enabling hem o manipula e cu ency alue ia seignio age. Acco ding
o Redish (1993), his p ac ice was equen , pa icula ly while al e na i e e enue sou ces,
such as axa ion, emained unde de eloped.
Du ing he 16 h cen u y—wi h he eme gence o goldsmi h banks (Ali e al.,2014)—
pape no es began o eplace p ecious me al coins as a medium o exchange (Redish,
1993). Ini ially, hese no es we e ully backed by me al coins and ac ed as eceip s o gold
deposi s ha banks we e en us ed wi h. Al hough no in insically aluable, hey could be
edeemed o a ixed quan i y o an unde lying commodi y, acili a ing he ans e o la ge
sums o money wi hou he need o physically anspo hea y me als (Eu opean Cen al
Bank,2012).
The de elopmen o ac ionally backed pape money and p i a e no e-issuing banks
e en ually led o he es ablishmen o cen al banks, ypically p i a e ins i u ions wi h a
monopoly o e he issuance o no es g an ed legal ende s a us (Redish,1993). F ac ional
ese e banking, by educing ese e a ios, made he banking sys em mo e e icien , bu i
also in oduced sys emic isks, p omp ing he eme gence o cen al banks o s abilise he
sys em (Redish,1993). Ali e al. (2014) a gue ha cen al banks a ose because o he in insic
link be ween money and paymen sys ems: o money o unc ion as a medium o exchange,
a sys em ha acili a es he ans e o alue (
i.e.
, a paymen sys em) mus be in place.
Addi ionally, a means o eco ding s o ed alues (
i.e.
, a ledge ) is equi ed i ansac ions
a e o be clea ed wi hou physically exchanging cu ency. Ca s ens e al. (2022) u he
his insigh , s a ing ha when economic agen s make paymen s, hey a e simul aneously
us ing bo h he money and he paymen sys em ha execu es he ansac ion. As he
numbe o banks inc eased, he need o e iciency led o he c ea ion o a clea ing bank,
holding he accoun s o all pa icipa ing ins i u ions (Ali e al.,2014).
Despi e hese ad ances, he mone a y sys ems o Wes e n economies e ained some
ea u es o hei ea lie oo s (Redish,1993). Me al coins emained in ci cula ion, and
he con e ibili y o pape money in o commodi ies like gold emained a co ne s one o
mone a y sys ems un il he 20 h cen u y. The gold s anda d, which linked money supply
o gold ese es, unde pinned much o he p ospe i y o he A lan ic economy (Redish,
1993). O e ime, he link be ween he money supply and ancho commodi ies weakened,
bu i emained signi ican . By he ea ly 20 h cen u y, managing gold ese es became
inc easingly di icul , culmina ing in he abandonmen o he gold s anda d du ing Wo ld
Wa I, ollowed by i s b ie eins a emen in he 1920s and inal collapse in he wake o 1929.
Economies 2025,13, 12 4 o 17
The pos -Wo ld Wa II e a saw he c ea ion o a new in e na ional mone a y o de , he
B e on Woods sys em. Signed in 1944, he acco d pegged na ional cu encies o he Uni ed
S a es dolla , i sel con e ible in o gold a a ixed a e o $35 pe ounce. Howe e , his
sys em did no las , wi h P esiden Richa d Nixon suspending he dolla ’s con e ibili y
in o gold in Augus 1971. This ma ked he de ini i e end o he commodi y-backed
mone a y e a and he a i ma ion o he ia money sys em ha p edomina es oday.
3.2. A Snapsho o he Age o Fia Cu encies
Following he collapse o he B e on Woods sys em, mos de eloped na ions a ou ed
lexible exchange a es (C oce & Khan,2000). This, in e alia, o e ed he oppo uni y o
implemen disc e iona y mone a y policies (C oce & Khan,2000). These policies allow
go e nmen s o in luence mac oeconomic ou comes by con olling bo h iscal and mone a y
policy ins umen s (Bandaogo,2021). Howe e , hese new ound possibili ies b ough hei
own challenges, such as he ime-inconsis ency p oblem o mone a y policy, o en iden i ied
as an impo an cause o The G ea In la ion o he 1970s (Bandaogo,2021) which p omp ed
Hayek o o iginally w i e and publish Dena ionalisa ion o Money.Jo dan (2022) emphasises
ha his pe iod p o ides a clea his o ical lesson: when cen al banks and iscal au ho i ies
collabo a e, mone a y policy is used o—ei he di ec ly o indi ec ly— inance de ici s,
leading o high in la ion and concomi an consequences, like esou ce misalloca ion, as
explained by C oce and Khan (2000) and Jo dan (2022).
In esponse o in la iona y p essu es, many coun ies began o g an hei cen al banks
ins i u ional independence s a ing in he mid-1980s, asking hem wi h main aining p ice
s abili y (C oce & Khan,2000). Ne e heless, cen al banks mus ne e o e look he e ec s
o iscal policy on hei capaci y o ul il his manda e (Jo dan,2022). Independen cen al
banks ope a e unde he p inciples o accoun abili y and anspa ency (Me sch,2017).
Accoun abili y e e s o he poli ical du y o p o ide ex-pos explana ion and jus i ica ion
o au onomous decision-making and is essen ial o legi imise cen al bank ac i i y in
democ a ic socie ies. T anspa ency aims o enhance he e ec i eness o cen al banks’
policies by clea ly communica ing hei objec i es, beha iou s, and decisions o he public.
In ecen yea s, howe e , cen al bank independence has come unde inc easing
sc u iny. Following he 2008 inancial c isis, cen al banks we e compelled o engage in
signi ican disc e iona y and uncon en ional in e en ions wi h subs an ial dis ibu ional
and iscal implica ions (Palley,2019). Mo eo e , in he a e ma h o his c isis, cen al banks’
powe s, asks, and esponsibili ies expanded beyond hose adi ionally associa ed wi h
mone a y policy (Bandaogo,2021;Me sch,2017). As Bandaogo (2021) no es, accoun abili y
has become mo e challenging because, unlike p ice s abili y—easily assessed by compa ing
a ge and eco ded in la ion le els —, new esponsibili ies, such as inancial s abili y o
en i onmen al sus ainabili y and gende di e si y, as highligh ed by Romelli (2024), a e
much mo e abs ac .
The COVID-19 pandemic u he in ensi ied deba es a ound cen al bank indepen-
dence (Bandaogo,2021). P io o his e en , cen al banks had subs an ially dec eased
sho - and long- e m in e es a es—some imes in o nega i e e i o y—by buying go e n-
men and co po a e bonds, he eby inc easing bo h hei balance shee s and isk exposu e
(Jo dan,2022). Following he co ona i us ou b eak, measu es o con ain he sp ead o he
disease we e implemen ed. These measu es se e ely es ic ed business ac i i ies, inducing
bo h iscal and mone a y esponses. Social bene i schemes and s imulus packages we e
in oduced o s abilise he economy, albei a he cos o a subs an ial inc ease in al eady-
high public deb . Meanwhile, cen al banks also sough o main ain ma ke liquidi y and
a oid de la ion.
Economies 2025,13, 12 5 o 17
I is now c i ical o cen al banks o demons a e ha hei ex ao dina y measu es
du ing hese c ises we e empo a y and do no signal he beginning o long- e m iscal
dominance o e mone a y policy (Jo dan,2022). In his con ex , Romelli (2024) analyses
he e olu ion o cen al bank independence ac oss a sample o 155 coun ies be ween 1923
and 2023. The au ho iden i ies a end owa ds enhanced cen al bank independence, wi h
e o ms slowing a e 2008 bu esuming since 2016.
3.3. Money and Paymen Sys ems in he Digi al E a
Mode n paymen sys ems sha e undamen al simila i ies wi h hose used by 16 h-
cen u y goldsmi hs, in ha paymen s a e s ill clea ed by educing he paye ’s balance and
inc easing ha o he ecipien ’s accoun by an equi alen amoun (Ali e al.,2014). I is he
echnologies used o eco d and ans e balances be ween banks ha a e en i ely di e en ,
pa icula ly wi h he ad en o compu e isa ion.
Technological ad ancemen s since he mid-20 h cen u y ha e had a p o ound impac
on paymen sys ems in wo key ways (Ali e al.,2014). Fi s , eco ds and ledge s ha e an-
si ioned om pape o elec onic o ma s, inc easing he speed o comple ing ansac ions
and educing ope a ional isks. Second, he de elopmen o low-cos digi al echnologies
spu ed he c ea ion o new paymen schemes, making paymen s mo e accessible o use s.
Mobile money schemes—whe e money is s o ed as a c edi on a sma ca d o a ledge
while elying on na ional cu encies—a e jus an example o hese inno a ions (Ali e al.,2014).
These schemes ha e been especially ans o ma i e in egions wi h limi ed adi ional banking
in as uc u e, p o iding access o inancial se ices o unde se ed popula ions. E en in
de eloped economies, mobile money has gained ac ion as an al e na i e o adi ional
banking, d i en by i s con enience and lowe cos s (Ali e al.,2014).
The COVID-19 pandemic accele a ed he adop ion o digi al and con ac less pay-
men me hods as ea o physical con ac and a su ge in e-comme ce eshaped consume
beha iou (Commi ee on Paymen and Ma ke In as uc u es,2021). A 2020 s udy by
Mas e ca d (2020) e ealed ha 79% o wo ldwide esponden s had adop ed con ac less
paymen s, wi h conce ns o e sa e y and cleanliness ci ed as key d i e s. Simila ly, by 2021,
64% o adul s wo ldwide had al eady engaged in a leas one digi al paymen ansac ion
(Demi güç-Kun e al.,2022).
3.4. The Age o New Cu ency Schemes and he C yp o Ecosys em
The echnological ad ancemen s o he la e 20 h and ea ly 21s cen u ies ha e no
only e olu ionised paymen sys ems bu ha e also acili a ed he eme gence o al e na i e
cu encies and decen alised s uc u es (Ali e al.,2014). C yp ocu encies, as an o sp ing o
he digi al e olu ion, a e a no able inno a ion in his ega d (Bas,2020). Bi coin, p oposed
in 2008 by he pseudonymous Nakamo o (2008), p opelled he de elopmen o blockchain
echnology (Als on e al.,2022) and enabled pee - o-pee ansac ions wi hou he need o
a us ed in e media y.
In ecen yea s, he scope o he c yp ocu ency ma ke has expanded signi ican ly,
leading o a concep ual shi om he na ow no ion o ‘c yp ocu encies’ o he mo e
inclusi e e m o ‘c yp o asse s’ (Houben & Snye s,2020). This e lec s he complexi y
o he c yp o ecosys em, which now encompasses a wide a ie y o asse s wi h di e en
unc ions. Achie ing a p ecise consensus on e minology has p o en di icul due o he
di e se na u e o hese asse s (Bas,2020).
S ill, Bas (2020) o e s a classi ica ion o c yp o asse s in o ou p ima y ca ego ies:
•
Bi coin and Al coins (i.e., Bi coin-like c yp ocu encies): These a e decen alised
c yp ocu encies whose supply is egula ed by algo i hms ha dic a e he g ow h a e
Economies 2025,13, 12 6 o 17
o he cu ency. New uni s a e ypically gene a ed h ough mining, a decen alised
p ocess whe e pa icipan s con ibu e compu a ional powe o alida e ansac ions;
•
S ablecoins: These c yp ocu encies aim o add ess he ola ili y seen in Bi coin and
al coins by s abilising pu chasing powe . They can be subdi ided in o he ollowing:
Colla e alised S ablecoins: Backed by ese es, hese coins main ain a 1:1 pa i y
wi h a e e ence asse , such as a na ional cu ency. Thei alue depends on he quali y
o he colla e al and he c edibili y o he issue ;
Non-Colla e alised S ablecoins: These ely on algo i hms ha adjus supply o
ensu e hei ma ke p ice s ays in line wi h he alue o he e e ence asse , wi hou
unde lying physical ese es;
•
Tokens: These c yp o asse s a e designed o speci ic unc ions and ope a e only wi hin
he pla o m o which hey we e c ea ed, as opposed o gene al-pu pose cu encies;
•
Cen al Bank Digi al Cu encies (CBDCs): These a e digi al e sions o ia cu encies, issued
by cen al banks and ep esen ing a digi al ex ension o adi ional cu ency sys ems.
The e olu ion o c yp ocu encies and c yp o asse s is no ewo hy, bu i has also
aced signi ican challenges. As shall be a gued mo e comp ehensi ely in subsequen
sec ions, while Bi coin-like c yp ocu encies we e ini ially seen as po en ial al e na i es
o ia money, hei ex eme ola ili y has limi ed hei p ac ical use as a eliable s o e o
alue o medium o exchange. S ablecoins ha e eme ged as a possible solu ion o his
issue, hough hey aise new conce ns ela ed o egula ion and us in hei issue s. The
pa h o wa d o c yp o asse s will depend on esol ing issues ela ed o, among o he s,
scalabili y, egula ion, and public us . As a gued nex , F. A. Hayek’s p escien ision o
compe i i e p i a e cu encies o e s insigh s on hese issues.
4. The Case o a New (Mone a y) Wo ld O de
Hayek’s (1990) p oposal ad oca es o p i a e cu ency issuance and compe i ion. This
sys em aims o educe go e nmen in e en ion and poli icisa ion o mone a y policy. C yp-
ocu encies ha e been linked o he Aus ian economis ’s ision, o e ing an al e na i e
o adi ional ia cu encies. Howe e , c i ics a gue ha his p oposal o e looks ne wo k
e ec s and in o ma ion cos s. The ela ionship be ween Hayek’s ideas and c yp ocu encies
is explo ed in he con ex o mone a y heo y and ins i u ional de elopmen s.
4.1. Hayek’s P oposal
F ied ich A. Hayek, a Nobel Lau ea e in Economics, i s published Dena ionalisa ion o
Money in 1976, in he a e ma h o he collapse o he B e on Woods sys em and amids a
pe iod o s ag la ion (Bas,2020). Like o he economis s in he Aus ian adi ion, Hayek
belie ed ha i he managemen o money is in he hands o he go e nmen , he gold
s anda d is he only sa is ac o y sys em (Eu opean Cen al Bank,2012). Ye , in his wo k,
he ques ions he gene ally ye aci ly accep ed belie ha a gi en na ion mus be p o ided
by i s go e nmen wi h i s own dis inc cu ency.
Hayek (1990) ad oca es o he emo al o go e nmen monopolies o e cu ency
issuance, sugges ing ha p i a e banks should be allowed o compe e by issuing hei
own cu encies. He belie ed ha compe i ion among p i a e issue s would lead o g ea e
mone a y s abili y, as compe i i e o ces would d i e banks o main ain he alue o hei
cu encies, as public us would be essen ial o hei success. In his iew, he public would
choose he mos s able and eliable cu ency, leading weake cu encies o be compe ed ou
o use. Hayek a gues ha such a sys em would no only educe he isk o go e nmen -
induced in la ion bu also p omo e indi idual eedom by diminishing go e nmen con ol
o e mone a y policy.
Economies 2025,13, 12 7 o 17
Hayek’s ision hinges on a sel - egula ing mone a y sys em d i en by compe i ion
a he han go e nmen in e en ion. The compe i ion be ween p i a e cu encies would
lead o inno a ions in inancial managemen , mo e esponsi e mone a y policies, and a
cu ency sys em ha e lec s he eal needs o he popula ion.
4.2. Link o C yp ocu encies
In many ways, c yp ocu encies align wi h Hayek’s (1990) ision: hey a e no issued
o con olled by cen alised au ho i ies, no do hey ely on o icial legal ende s a us o
hei accep ance (Fan acci,2019).
Bas (2020) highligh s wo u he no ewo hy pa allels be ween Hayek’s wo k and
he na u e o c yp ocu encies. Fi s ly, he design o mos c yp ocu encies inco po a es
mone a y ules ha ope a e independen ly o poli ical o a bi a y in luences, hus a oiding
disc e iona y policies common in ia sys ems. This mi o s Hayek’s desi e o a cu ency
sys em go e ned by anspa en and p edic able ules a he han by go e nmen in e e -
ence, which he belie ed o isk in la ion and economic ins abili y. Secondly, bo h Hayek’s
heo e ical amewo k and c yp ocu encies shi he ocus away om he c edibili y o
a cen al issue , which is essen ial in ia sys ems, o al e na i e mechanisms o us and
alue. Fu he connec ions be ween Hayek’s (1990) p oposal and c yp ocu encies can
be seen in he way he la e can bypass s a e con ol o e paymen sys ems and capi al
mo emen s (Fan acci,2019).
S ill, Hayek’s ision and he cu en ecology o c yp o asse s a e a om pe ec ly
aligned. As Maye and Bo inge (2024) highligh , in Hayek’s (1990) ision issue s would
egula e issuance ela i e o a e e ence asse , akin o how cen al o comme cial banks
manage o eign exchange ese es. This is mos closely e lec ed in he ope a ion o
s ablecoins, which, as men ioned, main ain a s able alue by pegging hei issuance o a
ese e asse like ia money, e en i being pegged o such an asse migh be, o i sel , an
impo an de ia ion om Hayek’s (1990) undamen al ision (Maye & Bo inge ,2024).
1
In
con as , unpegged Bi coin-like cu encies a e no ied o any unde lying asse o e e ence
alue a all, making hei alue, in p ac ice, much mo e highly ola ile. This ola ili y
has been he ule a he han he excep ion, as demons a ed in Figu e 1and Table 1
2
.
As Alonso e al. (2024) show, he beha iou o Bi coin esembles majo his o ical asse
bubbles, pa icula ly he Tulip Mania (1634–1637) and, o a lesse ex en , he Mississippi
Company Bubble (1719–1720). Thei ailu e o gain widesp ead accep ance as cu encies
could pe haps be seen as e idence o Hayek’s (1990) p emise ha pu chasing powe
s abili y is c ucial o he public accep ance o p i a e cu encies. In any case, some schola s
see Bi coin and simila c yp ocu encies as be e aligned wi h Mil on F iedman’s ision
o a ixed supply o cu ency dis ibu ed wi hou conce n o ma ke luc ua ions
3
, a he
han wi h Hayek’s compe i i e p i a e cu ency sys em (Ame ano,2016;Bas,2020).
Table 1. Desc ip i e s a is ics o daily e u ns.
SP500 Gold Eu o Yen Bi coin Te he
Mean Re u n 0.052 0.032 −0.005 0.016 0.205 0.000
Vola ili y 1.142 1.034 0.559 0.592 3.661 0.395
Min −11.984 −9.354 −2.775 −3.725 −37.170 −5.121
Max 9.383 7.832 3.459 3.820 25.247 5.824
Median 0.070 0.040 0.000 0.023 0.136 −0.001
Skewness −0.383 −0.310 0.013 0.011 −0.130 1.169
Ku osis 13.635 8.531 5.235 6.592 10.532 63.823
Economies 2025,13, 12 8 o 17
(a) Eu o (b) Japanese Yen
(c) Bi coin (d) Te he -USD
(e) S&P500 ( ) Gold
Figu e 1. Daily e u ns (%) o asse s.
Maye and Bo inge (2024) sugges ha a dis inc ion mus be made be ween Hayekian
bankno es—which a e physical and exchanged pee - o-pee —and bank accoun s—which
a e digi al and ans e ed ia a cen alised accoun ing sys em. In e ms o con e ibili y
equi emen s, Hayek’s (1990) s ance is somewha unclea . I he en isioned con e ibili y
in o na ional cu encies o o he unde lying asse s, hen bank accoun s unde his sys em
would esemble adi ional bank accoun s, and hei digi al equi alen could be embodied
h ough s ablecoins. I , howe e , Hayek did no in end o equi e legal con e ibili y,
hen unpegged c yp ocu encies, aside om hei accoun ing mechanism, could also be
classi ied as Hayekian money.
S ablecoins eplace us in a monopolis ic issue wi h a compe i i e p ocess ha
p omo es mu ual o e sigh among di e en issue s, whe he public o p i a e. S ablecoins
inco po a e he mos appealing ea u es o Bi coin and al coins—such as anonymous, as ,
and low-cos ans e s—while mi iga ing hei inhe en ola ili y (Bas,2020). I is wo h
highligh ing ha Figu e 1, panel (d), illus a es he s abilisa ion p ocess desc ibed by Hayek.
Te he ’s alue—measu ed in US dolla s—has, a e an ini ial pe iod o e iden ola ili y,
become ela i ely s able in ecen yea s. This is con i med by he da a displayed in Table 1,
whe e Te he eme ges as he leas ola ile o he asse s conside ed. This is u he ad anced
in Figu e 2and Table 2, whe e we zoom in on one o he Bi coin bubbles iden i ied by
Alonso e al. (2024)—2021, he only yea whe e we ha e in o ma ion o he whole yea
o all six asse s conside ed in ou o iginal da ase . Once again, Te he eme ges as he
leas ola ile o he asse s conside ed, highligh ing i s ela i e ad an age as a s o e o
pu chasing powe . By being pegged o he Uni ed S a es dolla , Te he suppo s Bas’s (2022)
a gumen ha adop ing a s a e ia cu ency was a good business decision un il mid-2021,
as i bene i ed om he signi ican ne wo k e ec s p o ided by hese cu encies. I would
likely con inue o be ad an ageous i he in la iona y p essu es ha eme ged a e wa ds
emain con olled. Bas (2020,2022) s esses he di e ences be ween colla e alised and
non-colla e alised s ablecoins, concluding ha while he o me closely mi o Hayek’s
Economies 2025,13, 12 15 o 17
ha impac mos ly labou , as no ed by Palley (2019). Ye , mains eam esea ch o en
o e looks hese dis ibu ional e ec s. This implici bias may explain why he e is li le
academic u gency o es ablish a comp ehensi e legal amewo k o he c yp o sec o .
Ins ead, he absence o egula ion seems o align wi h a cau ious delay, e ec i ely buying
ime o CBDCs o ad ance as he p e e ed model o u u e digi al inance. This delay
may e lec an unde lying ension be ween he p ese a ion o s a e con ol o e mone a y
policy and he eme gen demand o decen alised inancial sys ems, e i alising some o
he claims wi hin Dena ionalisa ion o Money.
Ul ima ely, whe he Hayek’s ision can ma e ialise emains unce ain. Gi en he
p e ailing s uc u es and he ine ia o es ablished mone a y sys ems, a ansi ion o a
compe i i e, c yp ocu ency-based mone a y o de seems imp obable in he nea e m.
Fu u e esea ch migh explo e he heo e ical ques ion o whe he disman ling go e n-
men mone a y monopolies, namely ia c yp ocu ency adop ion, could i sel become a
dis o ion o his o ic inancial no ms, highligh ing he inhe en challenges in dis up ing
long-s anding sys ems.
Au ho Con ibu ions: Concep ualisa ion, L.P.F., J.C. and D.L.; me hodology, L.P.F., J.C. and D.L.;
alida ion, L.P.F., J.C. and D.L.; o mal analysis, L.P.F.; in es iga ion, L.P.F.; w i ing—o iginal d a
p epa a ion, L.P.F.; w i ing— e iew and edi ing, L.P.F., J.C. and D.L. All au ho s ha e ead and ag eed
o he published e sion o he manusc ip .
Funding: This esea ch was inanced by Po uguese public unds h ough FCT (Fundação pa a a
Ciência e a Tecnologia, I.P.), in he amewo k o p ojec UIDB/04105/2020 and he p ojec UID/00727.
The p ojec UID/00727 suppo ed he a icle p ocessing cha ges (APC).
In o med Consen S a emen : No applicable.
Da a A ailabili y S a emen : All he da a used in his a icle was ob ained om Yahoo Finance on 8
Decembe 2024.
Con lic s o In e es : The au ho s decla e no con lic s o in e es .
No es
1
Bas (2020,2022), on he o he hand, claims ha his co esponds o me ely a ansi ional phase. Fo his au ho , colla e alised
s ablecoins may be conside ed Hayekian money when iewed om he pe spec i e o supplie beha iou .
2
These elemen s we e gene a ed in RS udio using commands o e ie e da a om Yahoo Finance o he Eu o and Japanese Yen, as
ep esen a i es o s a e ia cu encies, gold and he S&P500 index, as con en ional inancial asse s, Te he , as he ep esen a i e
o s ablecoins, and Bi coin. The selec ion o hese asse s as e e ences o he la e wo was inspi ed by he wo ks o Aha on
and Demi (2022), Yousa and Ya o aya (2022), and Yousa e al. (2022). Da a we e e ie ed, when a ailable, om 3 Janua y
2009, since his was he da e ha he i s 50 Bi coins we e mined (Wallace,2011), un il 30 June 2024, ma king he end o he las
comple e semes e . The measu e o ola ili y used is daily pe cen age e u ns, cap u ing he day- o-day luc ua ions in an asse ’s
closing p ice ela i e o he p e ious day’s alue.
3In ac , Bi coin’s igid supply ule has been ound o be he cause o i s ola ile and explosi e p ice beha iou by Podho sky (2024).
4
The au ho elies on he wo k o F iedman (1984), who sugges s ha indi iduals would only seek al e na i e cu encies when
hey su e ed om se e e in la ion, as happened in Mexico in he 1980s. Al hough Mexican people bene i ed om he eedom o
use o eign cu encies, pa ial dolla isa ion only occu ed in he ace o hea y in la ion. We could also men ion ha he mass
adop ion o a non-na ional cu ency only occu s in abno mal ci cums ances, such as hose occu ing in Zimbabwe since he
mid-2000s and Venezuela since la e 2018, as epo ed by Cas añeda e al. (2024). S ill, in Pe u, he na ional cu ency is only used
o smalle local ansac ions and paying axes, as esiden s a e ee o use ei he Nue o Pe u ian Soles o Uni ed S a es dolla s.
5Pane a (2023) a gues ha blockchain ansac ions a e ine icien , slow, and cos ly, e e ing o he ‘blockchain ilemma,’ whe e
op imal secu i y, scalabili y, and decen alisa ion canno all be achie ed simul aneously.
6
I should be no ed, as Alonso e al. (2024) a gue, ha adi ional measu es designed o p e en specula i e bubbles a e unlikely
o be e ec i e in he case o Bi coin, due o i s digi al and decen alised na u e. Consequen ly, as hese au ho s a gue, mode n
egula o y app oaches will likely need o adop inno a i e and o wa d- hinking s a egies. We specula e, howe e , ha such
measu es may also expand egula o y bodies’ disc e iona y powe s and concomi an isks.
Economies 2025,13, 12 16 o 17
7
Pane a (2023) also d aws a en ion o he po en ial o unbacked c yp o asse s o ci cum en ing capi al con ols, sanc ions, and
inancial egula ion. The au ho opposes he no ion o s ablecoin issue s, as non-bank inancial ins i u ions, holding cen al bank
ese es, wa ning ha such a mo e could e ode mone a y so e eign y, inancial s abili y, and paymen sys em in eg i y, he eby
socialising c yp o- ela ed isks.
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