Upon successful completion of this unit, you will be able to:

  • Compare and contrast central bank digital currencies with cryptocurrencies like Bitcoin;
  • Describe the role of fractional reserve banking in modern economies;
  • Discuss theoretical models of banking systems in cryptocurrency-based economies;
  • Discuss the impact on fractional reserve banking in the free market given a scenario where the central bank is no longer lender of last resort;
  • Describe some proposed models for cryptocurrency-based banking;
  • Explain how shadow banks engage in fractional reserve banking;
  • Describe the features of Bitcoin that make it resistant to manipulation; and
  • Explore what Bitcoin finance would look like under a Bitcoin standard.