Publication Date

Spring 5-15-2021

School

School of Business; School of Engineering and Computational Sciences

Major

Computer Science

Keywords

bitcoin, cryptocurrency, reserve assets, blockchain, economics, macroeconomics, economy, decentralization, ethereum, crypto, currency, dollar, inflation, cybersecurity, cryptography, investing, inflation hedge, federal reserve, petrodollar, satoshi nakamoto, finance, digital assets, NFTS, wallets, cryptocurrency wallets, altcoin, satoshi, HODL, FOMO, FUD, Bitcoin Maximalist, forking, DeFi, decentralized finance, bitcoin mining

Disciplines

Corporate Finance | Finance and Financial Management | Portfolio and Security Analysis | Technology and Innovation

Abstract

Reserve assets include commodities, currencies, or other capital held by institutions as a hedge against the fluctuations of external factors. While the United States’ rise to power helped establish the US dollar as the most predominant reserve asset of the past fifty years, current events & the fast pace of technological advancement has exposed some limitations in the system. Blockchain technology has allowed for assets with cryptographically verifiable integrity that fundamentally depart from the US dollar standard and has potential to overhaul reserve assets as we know it. The course of this research details the downsides of legacy reserve assets, the cryptographic innovations that make cryptocurrencies a viable alternative, and an adoption framework for interested institutions.

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