Crypto-Assets Activity around the World : Evolution and Macro-Financial Drivers
On-chain crypto-assets transaction volumes have grown rapidly, particularly during the COVID-19 pandemic. Crypto-assets activity appears to be a global phenomenon, although it still remains modest relative to gross domestic product for most countri...
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Washington, DC: World Bank
2022
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| Online Access: | http://documents.worldbank.org/curated/en/738261646750320554/Crypto-Assets-Activity-around-the-World-Evolution-and-Macro-Financial-Drivers http://hdl.handle.net/10986/37115 |
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okr-10986-371152022-03-10T05:10:51Z Crypto-Assets Activity around the World : Evolution and Macro-Financial Drivers Feyen, Erik H.B. Kawashima, Yusaku Mittal, Raunak THE BASEL COMMITTEE ON BANKING SUPERVISION BITCOIN INFLATION EXPECTATION FINANCIAL AND MONETARY STABILITY STORE OF VALUE FINANCIAL SECTOR POLICY DIGITAL CURRENCY On-chain crypto-assets transaction volumes have grown rapidly, particularly during the COVID-19 pandemic. Crypto-assets activity appears to be a global phenomenon, although it still remains modest relative to gross domestic product for most countries. Panel regressions across more than 130 countries show that the variation in countries’ monthly crypto volumes is mostly driven by globally relevant factors such as real U.S. longer-term inflation expectations, U.S. real Treasury yields, and gold and crypto-asset prices, rather than recent country-level macroeconomic developments. Cross-sectional regressions offer tentative evidence that crypto activity is higher in countries with higher information and communications technology adoption and higher reliance on remittances. Taken together, the findings shed new light on the drivers behind crypto activity and offer support to the notions that crypto-assets are perceived as a risk asset, a potential macro hedge, and a potential tool to support cross-border transactions. However, the results come with caveats: a significant portion of the sample period includes extraordinarily loose global financial conditions; the crypto volume data have a short history, rely on important limiting assumptions, and do not represent all crypto activity; and crypto-assets represent a fast-evolving, increasingly diverse asset class and industry. 2022-03-09T20:32:36Z 2022-03-09T20:32:36Z 2022-03-08 Working Paper http://documents.worldbank.org/curated/en/738261646750320554/Crypto-Assets-Activity-around-the-World-Evolution-and-Macro-Financial-Drivers http://hdl.handle.net/10986/37115 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
THE BASEL COMMITTEE ON BANKING SUPERVISION BITCOIN INFLATION EXPECTATION FINANCIAL AND MONETARY STABILITY STORE OF VALUE FINANCIAL SECTOR POLICY DIGITAL CURRENCY |
| spellingShingle |
THE BASEL COMMITTEE ON BANKING SUPERVISION BITCOIN INFLATION EXPECTATION FINANCIAL AND MONETARY STABILITY STORE OF VALUE FINANCIAL SECTOR POLICY DIGITAL CURRENCY Feyen, Erik H.B. Kawashima, Yusaku Mittal, Raunak Crypto-Assets Activity around the World : Evolution and Macro-Financial Drivers |
| description |
On-chain crypto-assets transaction
volumes have grown rapidly, particularly during the COVID-19
pandemic. Crypto-assets activity appears to be a global
phenomenon, although it still remains modest relative to
gross domestic product for most countries. Panel regressions
across more than 130 countries show that the variation in
countries’ monthly crypto volumes is mostly driven by
globally relevant factors such as real U.S. longer-term
inflation expectations, U.S. real Treasury yields, and gold
and crypto-asset prices, rather than recent country-level
macroeconomic developments. Cross-sectional regressions
offer tentative evidence that crypto activity is higher in
countries with higher information and communications
technology adoption and higher reliance on remittances.
Taken together, the findings shed new light on the drivers
behind crypto activity and offer support to the notions that
crypto-assets are perceived as a risk asset, a potential
macro hedge, and a potential tool to support cross-border
transactions. However, the results come with caveats: a
significant portion of the sample period includes
extraordinarily loose global financial conditions; the
crypto volume data have a short history, rely on important
limiting assumptions, and do not represent all crypto
activity; and crypto-assets represent a fast-evolving,
increasingly diverse asset class and industry. |
| format |
Working Paper |
| author |
Feyen, Erik H.B. Kawashima, Yusaku Mittal, Raunak |
| author_facet |
Feyen, Erik H.B. Kawashima, Yusaku Mittal, Raunak |
| author_sort |
Feyen, Erik H.B. |
| title |
Crypto-Assets Activity around the World : Evolution and Macro-Financial Drivers |
| title_short |
Crypto-Assets Activity around the World : Evolution and Macro-Financial Drivers |
| title_full |
Crypto-Assets Activity around the World : Evolution and Macro-Financial Drivers |
| title_fullStr |
Crypto-Assets Activity around the World : Evolution and Macro-Financial Drivers |
| title_full_unstemmed |
Crypto-Assets Activity around the World : Evolution and Macro-Financial Drivers |
| title_sort |
crypto-assets activity around the world : evolution and macro-financial drivers |
| publisher |
Washington, DC: World Bank |
| publishDate |
2022 |
| url |
http://documents.worldbank.org/curated/en/738261646750320554/Crypto-Assets-Activity-around-the-World-Evolution-and-Macro-Financial-Drivers http://hdl.handle.net/10986/37115 |
| _version_ |
1764486584607965184 |