Crypto, Corruption, and Capital Controls: Cross-Country Correlations
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Summary:
Empirical investigation of the factors underlying the growing usage of crypto-assets is in its infancy, owing to data limitations. In this paper, we present a simple cross-country analysis drawing on recently released survey-based data. We explore the correlation of crypto-asset usage with indicators of corruption, capital controls, a history of high inflation, and other factors. We find that crypto-asset usage is significantly and positively associated with higher perception of corruption and more intensive capital controls. Notwithstanding the data limitations, the results support the case for regulating crypto-assets, including know-your-customer approaches, as opposed to taking a laissez-faire stance.
Series:
Working Paper No. 2022/060
Subject:
Balance of payments Capital controls Corruption Crime Technology Virtual currencies
Frequency:
regular
English
Publication Date:
March 25, 2022
ISBN/ISSN:
9798400204005/1018-5941
Stock No:
WPIEA2022060
Pages:
19
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