We construct daily databases of crypto bans and policy statements concerning central bank digital currencies (CBDCs) to estimate their effect on crypto trading volumes for an unbalanced panel of 116 countries from November 2016 to December 2021. We find that trading volume falls by up to 55% in the week after the announcement of a ban, and by up to 25% after a CBDC-supportive speech by senior central bank officials. For the strictest bans, this reduction persists over the subsequent quarter, driven by a reduction in trading by institutional investors. The results suggest that crypto market participants pay significant attention to government policy on digital assets.(c) 2022 Elsevier B.V. All rights reserved.

Copestake, A., Furceri, D., Gonzalez-Dominguez, P. (2023). Crypto market responses to digital asset policies. ECONOMICS LETTERS, 222 [10.1016/j.econlet.2022.110949].

Crypto market responses to digital asset policies

Furceri, D;
2023-01-01

Abstract

We construct daily databases of crypto bans and policy statements concerning central bank digital currencies (CBDCs) to estimate their effect on crypto trading volumes for an unbalanced panel of 116 countries from November 2016 to December 2021. We find that trading volume falls by up to 55% in the week after the announcement of a ban, and by up to 25% after a CBDC-supportive speech by senior central bank officials. For the strictest bans, this reduction persists over the subsequent quarter, driven by a reduction in trading by institutional investors. The results suggest that crypto market participants pay significant attention to government policy on digital assets.(c) 2022 Elsevier B.V. All rights reserved.
2023
Copestake, A., Furceri, D., Gonzalez-Dominguez, P. (2023). Crypto market responses to digital asset policies. ECONOMICS LETTERS, 222 [10.1016/j.econlet.2022.110949].
File in questo prodotto:
File Dimensione Formato  
1-s2.0-S0165176522004232-main.pdf

Solo gestori archvio

Descrizione: Articolo completo
Tipologia: Versione Editoriale
Dimensione 435.56 kB
Formato Adobe PDF
435.56 kB Adobe PDF   Visualizza/Apri   Richiedi una copia

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10447/590699
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 3
  • ???jsp.display-item.citation.isi??? 3
social impact