Decrypting new age international capital flows

Clemens Graf von Luckner, Carmen Reinhart and Kenneth Rogoff

Journal of Monetary Economics, 2023, vol. 138, issue C, 104-122

Abstract: This paper employs high frequency transactions data on the world's two oldest and most extensive centralized peer-to-peer Bitcoin markets, enabling trade in the currencies of more than 160 countries. We develop an algorithm that allows us, with high probability, to detect “crypto vehicle transactions” in which crypto currency is used to move capital across borders, and/or to exchange one fiat currency for another. The data suggest that the use of Bitcoin has become an increasingly important channel to receive remittances and evade capital controls in emerging markets. Two event studies on Venezuela and Argentina provide supporting evidence.

Keywords: Cryptocurrencies; Bitcoin; International capital flows; Transactions; Speculative bubbles (search for similar items in EconPapers)
JEL-codes: E42 E51 E58 F21 F24 F32 F38 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Decrypting New Age International Capital Flows (2023)
Working Paper: Decrypting New Age International Capital Flows (2023)
Working Paper: Decrypting New Age International Capital Flows (2023)
Working Paper: Decrypting New Age International Capital Flows (2021)
Working Paper: Decrypting New Age International Capital Flows (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:moneco:v:138:y:2023:i:c:p:104-122

DOI: 10.1016/j.jmoneco.2023.05.015

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