The PAYTECH Book

Will Central Banks Adopt the New World Economy of Cryptocurrencies?

By Aarón Olmos

Economist and Professor of Cryptocurrencies,

Since the creation of the Central Bank of Sweden (Sveriges Riksbank) in 1688, the need to control monetary flows became evident. Central banks control one of the most important elements in the political and economic game of the states, money. The urgency of creating a means of exchange, divisible, fractionable, reserve of value and unit of account goes back more than 5,000 years in history, but it is with the central bank that money becomes a key piece of the economic dynamics of the nations, as a reflection of the levels of national production, an indicator of the cost of living, a reference for price systems and a focal point for several schools of economic thought.

A Vision of Money

In 1976 Professor Frederick von Hayek, member of the Austrian School and winner of the Nobel Prize for Economics, published his book The Denationalization of Money.¹ This book highlighted the need for a free monetary system and economy of central banks, considering them the cause of the greatest distortions in the economic dynamics of countries with fiscal deficits; here monetary policy, far from correcting the present structural problems, aggravates them. In this sense, Hayek even refers to the need for free choice, on the part of people and companies, for the type of money that represents them. He went on to show a vision of a type of money denationalized and independent ...