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The Identity, Fungibility and Anonymity of Money
Author(s) -
Berg Alastair
Publication year - 2020
Publication title -
economic papers: a journal of applied economics and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.245
H-Index - 19
eISSN - 1759-3441
pISSN - 0812-0439
DOI - 10.1111/1759-3441.12273
Subject(s) - fungibility , currency , anonymity , electronic money , cash , digital currency , cryptocurrency , medium of exchange , unit of account , monetary economics , identity (music) , quality (philosophy) , economics , unit (ring theory) , business , commerce , payment , finance , computer security , computer science , philosophy , physics , epistemology , acoustics , mathematics education , mathematics
The fungibility of money is a characteristic which contributes to the quality of money. Fungibleness is itself related to the technical ability to associate a unit of currency with its past instances of exchange. This history is analogous to the identity of money. The identity of an individual unit of exchange is increasingly important as cash becomes less common, and banks require more information about the provenance of money. Private currencies, including Bitcoin and Libra, are themselves subject to tracking. The prior financial – and potentially political – activities of a user determine the fungibility of the currency they hold. Different money technologies provide varied levels of privacy, while cryptocurrencies offer users the potential to choose the level of information they share.