State Control of Digital-Fiat-Electronic Currency Transmission in an Economy: The Case for a Hybrid Currency

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Published: 2023-03-06

Page: 92-96


Eke, Chukwuemeka Ifegwu *

Department of Economics, University of Abuja, Abuja, Nigeria.

Osi, Uchechukwu Mary

Department of Economics, University of Abuja, Abuja, Nigeria.

Sule, Magaji

Department of Economics, University of Abuja, Abuja, Nigeria.

Ibrahim Musa

Department of Economics, University of Abuja, Abuja, Nigeria.

*Author to whom correspondence should be addressed.


Abstract

We develop a multi-currency model to depict a typical three-currency-scenario system is introduced as a fundamental financial system to study discuss how to create the necessary instruments that will allow state actors gain control of cryptocurrency and gradually introduce a hybrid version. We use a framework allows for a co-integration of fiat, electronic and cryptocurrency from which financial value emerges in an economy. The ideal system for imposing systemic controls for policy implementation and stability is obtained via a mathematical value. The objective of the paper is to outline clearly without ambiguity policy guidelines that can be put in place to enable the state control the transmission of fiat-electronic-cryptocurrency. A system of ten equations is developed to scientifically and in an unbiased format distill a sound argument for the creation of a hybrid currency. The prescriptions suggest an interesting solution for this policy challenge confronting several central banking authorities. The major policy objective would be energizing the ecosystem so as to create a hybrid currency.

Keywords: Digital currency, fiat currency, financial system


How to Cite

Ifegwu, E. C., Mary, O. U., Magaji, S., & Musa, I. (2023). State Control of Digital-Fiat-Electronic Currency Transmission in an Economy: The Case for a Hybrid Currency. Asian Journal of Economics, Finance and Management, 5(1), 92–96. Retrieved from https://globalpresshub.com/index.php/AJEFM/article/view/1780

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