What is New about Cryptocurrencies? A Visual Analysis

In the context of recent developments with cryptocurrencies, as well as the potential rise of central bank digital currencies, we present a new visualisation of money. Using three novel figures, we distinguish between the relevant mechanisms, technologies, record- keeping, and transactions of various forms of money, as well as the classifications of different types of money; this enables the resolution of omissions and ambiguities in other recent such visualisations (CPMI 2018; Bech and Garratt 2017; Bech and Garratt 2017; CPMI 2015; Wadsworth 2018a; Wadsworth 2018b). This reveals the novelty of cryptocurrencies, which use the software-based cryptographically secured record- keeping, that support the issue of money with a credible commitment to a limited quantity of issue. We conclude with a discussion of policy implications stemming from our analysis.