Bitcoin is part of a wider range of opportunities to creating cryptocurrencies based on\nblockchains. Research has shown that the existing cryptocurrencies are very volatile and\noften illiquid. A cryptocurrency endorsed by a Central Bank, as the starter of a private\nblockchain, will most likely show more stability. It may even take the form of legal tender.\nHowever, since almost all countries have their own currency already, the governments will\nnot feel the need for an additional currency. One exception is Palestine. It enjoyed the\nprivilege of having its own currency in the past. The purpose of this research is the evaluation\nof the feasibility of a cryptocurrency as legal tender. The authors recommend a new\nPalestinian Pound built on a private blockchain using Hyperledger. In practice it would not\ndiffer from any other fiat (legal) currency. The current weakness of not having its own\ncurrency could be turned into a strength by becoming the most advanced economy where\ntransactions are transparent and efficient. This paper fills a research gap by analyzing the\nopportunities of a cryptocurrency that is actual legal tender and endorsed by a monetary\nauthority.
Loading....