DECO 25A13 - Cryptocurrencies and Blockchain: New Challenges for Banks and Central Banks

This course aims at providing an understanding of the recent developments in cryptocurrencies and blockchain technology and their consequences on the banking sector and central banks. Cryptocurrencies and Fintech questions the banking system in its essential intermediary role but also central banks as provider of legal tender currency. Cryptocurrencies like BTC built on blockchains, work on a decentralized scheme disrupting our hierarchical system. This is a serious challenge for Central Banks and regulators since the banking and financial system greatly influences the state of the economy. Cryptocurrencies - the Bitcoin in particular - were born as a way to develop an alternative to the existing system judged corrupted and biased by human action. Cryptocurrencies are more than just the design of a new monetary system, it offers an alternative design for the organization of the society based on decentralization and trust. The course investigates the consequences of their further adoption on banks and central banking together with the response of Central Banks and regulators. After a review of our traditional banking and financial system, the course will introduce cryptocurrencies starting with Bitcoin, the Ethereum, stablecoins and CBDCs. The last part of the course will be dedicated to the emergence of different regulatory frameworks at the international level.

Nathalie JANSON

Séminaire

English

Spring 2024-2025

Press Review: 30% Team Presentation: 30% Final Paper: 40%