A Primer on Bitcoin Cross-Border Flows: Measurement and Drivers
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Summary:
The rapid growth of crypto assets raises important questions about their cross-border usage. To gain a better understanding of cross-border Bitcoin flows, we use raw data covering both on-chain (on the Bitcoin blockchain) and off-chain (outside the Bitcoin blockchain) transactions globally. We provide a detailed description of available methodologies and datasets, and discuss the crucial assumptions behind the quantification of cross-border flows. We then present novel stylized facts about Bitcoin cross-border flows and study their global and domestic drivers. Bitcoin cross-border flows respond differently than capital flows to traditional drivers of capital flows, and differences appear between on-chain and off-chain Bitcoin cross-border flows. Off-chain cross-border flows seem correlated with incentives to avoid capital flow restrictions.
Series:
Working Paper No. 2024/085
Subject:
Balance of payments Blockchain and DLT Capital flows Currencies Financial activity tax Money Taxes Technology
Frequency:
regular
English
Publication Date:
April 5, 2024
ISBN/ISSN:
9798400274879/1018-5941
Stock No:
WPIEA2024085
Format:
Paper
Pages:
43
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