The relationship between monetary economics and cryptocurrency is as yet unclear. Since the Great Recession of 2008 the world order has been described as operating under a new Keynesian economics. This paper examines how central banks use fractional reserve banking (FRB) combined with market factors to stimulate or suppress aggregate demand through the money supply, a fundamental Keynesian tenet. The economic and operational functions of a central bank are, however, viewed through the lens of the Bitcoin crypto economy which has no such centralised structure or mechanisms. The closest artefact is Bitcoin’s consensus behaviour embodied in a shared algorithm. It is asked and answered would FRB organically emerge in the Bitcoin crypto economy if cryptocurrency exchanges were to act like fiat currency depository institutions.
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A list of papers, articles and other resources to support improved governance, sound macro-fiscal policy and planning, the appropriate application of technology to support development leapfrogging, and robust public financial management.