Dear all Publish, people 

I have written a policy paper for African Institute for Decentralised Finance and Blockchain (AIDBLOCK) regarding cryptocurrencies and international financial institutions such as the IMF, BiS, and G20. 

At the moment, I am in the process of finalizing a new paper focusing on crypto and public monetary policies regarding central banks, governments, and CBDCs. 

In the 2019 study "How do Private Digital Currencies Affect Government Policy?" by Max Raskin, Fahad Saleh, and David Yermack, analyze the implications of private digital currencies on three key areas of government policy - taxation, the regulation of illegal goods and services, and central banking. According to the researchers, private digital currencies have the potential to significantly impact taxation systems, mainly due to the anonymous nature of transactions made using these assets. By allowing users to conduct transactions without revealing their identities, digital currencies can make it more difficult for governments to track and collect taxes.

Their study suggests that governments may need to adapt their taxation strategies in response to the increasing adoption of digital currencies. One method could involve shifting the focus from taxing income to taxing consumption. The authors also propose that governments explore alternative tax strategies, such as implementing a wealth or land value tax. Furthermore, the adoption of blockchain technology could assist governments in tracking and collecting taxes more efficiently by providing a transparent and immutable record of transactions.

Regarding monetary policy, the rise of private digital currencies could also affect central banks' ability to implement monetary policy. Since digital currencies operate outside the traditional financial system, they may reduce the effectiveness of conventional monetary policy tools, such as interest rates and open market operations. The authors suggest that central banks may need to adapt their policy tools and even consider issuing CBDCs to maintain control over monetary policy. However, implementing CBDCs also presents several challenges, including balancing user privacy and data security and the potential for increased surveillance and reduced financial privacy. 

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