Are You Ready for Digital Currency?

Smith, Antoinette L.; Weismann, Miriam F.

doi:10.1002/jcaf.21999

Cited by 14 publications

(8 citation statements)

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“…Second, Proposition 2 only applies if the financial incentive is the rationale for platform participation. It's conceivable to have a simultaneous increase in token value and platform participation for MSPs designed for illegal activities, which is a pressing issue in the blockchain community (Shoshitaishvili et al 2014;Smith and Weismann 2014;van Hout and Bingham 2014). For instance, almost half of all bitcoin transactions have an illegal background (Foley et al 2019).…”

Section: Overarching Results and Implicationsmentioning

confidence: 99%

The token’s secret: the two-faced financial incentive of the token economy

et al. 2020

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Multi-sided platforms are omnipresent in today's digital world. However, establishing a platform includes challenges: The platform utility usually increases with the number of participants. At an early stage, potential participants expect the platform utility to be low and lack an incentive to join (i.e., "chicken and egg" problem). Blockchain-enabled utility tokens hold the promise to overcome this problem. They supposedly provide a suitable financial incentive for their owners to join the platform as soon as possible. In the first half of 2018, investors seemed to believe in the presumption and spent more than US$ 17.6 billion in token sales. To date, we know little about this financial incentive in the context of the token economy. For this purpose, we model the token value development and the associated incentives in a multi-sided blockchain-enabled platform. The resulting findings suggest that blockchain-enabled utility tokens can help to overcome the "chicken and egg" problem. However, these tokens lead to contradictory incentives for platform participants, and can even inhibit platform usage. The contribution of our work is twofold: First, we develop one of the first models for token value development. Second, our research contributes to a deeper understanding of the utility token's financial incentive.

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Section: Overarching Results and Implicationsmentioning

confidence: 99%

The token’s secret: the two-faced financial incentive of the token economy

et al. 2020

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“…Under‐socialized use cases also foster visions of blockchain futures in which the Bitcoin community and its primary culture are serendipitously divorced from the technicity and technology made possible by their efforts, in a process that amounts to labor alienation in cyberspace (Dodd, ; Kristian, ). It appears taken for granted that the most adept and entrepreneurial Bitcoin programmers, cryptographers, and traders will identify roles for themselves in the Brave New World of corporate DLT entrepreneurship (Ali et al, ; Doguet, ; Fanning & Centers, ; McWaters et al, ; Smith & Weismann, ; Surowiecki, ; Taft, ; Tsukerman, ; Turpin, ; Walport, ; Welch, ).…”

Section: Current Intrepretations Of Bitcoin’s Past Present and Futurementioning

confidence: 99%

“…Blockchain cryptography emerges from the interview as a technical accomplishment born of social innovations supporting new types of monetary exchange (see for example Angel & McCabe, ; Dodd, ; Kristian, ; Maurer et al, ; Reijers & Coeckelbergh, ) that aim to eliminate the need for costly and prohibitive intermediation by governments, banks, and clearing houses (Ali et al, ; Brennan & Lunn, ; Doguet, ; Fanning & Centers, ; Smith & Weismann, ; Turpin, ; Walport, ; Welch, ). Participants in the Bitcoin ecosystem are said to be united by this stance of anti‐intermediation , even if their reasons for being allied to this cause are at philosophical odds, as in the oft‐cited example of Libertarian versus Socialist rationales for assembling cryptocurrency networks (Ali et al, ; Dodd, ; Godsiff, ; Lemieux, 2013).…”

Section: Blockchain Futures Imagined With Bitcoinmentioning

confidence: 99%

“…Future company buying decisions could be equally influenced by present‐day arguments in favor of blockchain adoption, which tend to cast this dynamic innovation as an “invisible hand” that will deftly remodel organizational inefficiencies, perpetuating seamless supply chains, smooth‐running cities, intelligent manufacturing plants, faultless identity registers, and crime‐resistant financial systems (Ali, Barrdear, Clews, & Southgate, ; Bateman, ; Brennan & Lunn, ; Doguet, ; Fanning & Centers, ; McWaters et al, ; Smith & Weismann, ; Surowiecki, ; Taft, ; Tsukerman, ; Turpin, ; Walport, ; Welch, ).…”

Section: Introductionmentioning

confidence: 99%

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Blockchain futures: With or without Bitcoin?

Kewell

Ward

2017

Strategic Change

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Blockchain technology is considered, in some quarters, to have outgrown its primary association with the Bitcoin payments ecosystem. This belief has fostered numerous predictions of blockchain futures, in which the Bitcoin ecosystem is largely absent. It is nevertheless wholly possible to imagine a future for blockchain in which Bitcoin plays a presiding role. In drawing attention to subtexts of this kind, expectations of the future can prove highly persuasive within the context of technology selection and adoption processes of the present, lending an invisible hand to the design of business models, while also guiding strategic choices and the purchasing decisions made by managers.

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“…Within risk management the existence of Bitcoin also began to be mentioned (Fischbacher-Smith and Smith, 2015), while those interested in maintaining competitive markets have noted potential for new competition from cryptographic currencies within the context of new payments technologies (Zucarro and Bridwell, 2016). Academics in accounting also realised there are interesting implications from Bitcoin for financial reporting (Smith and Weismann, 2014;Grant and Hogan, 2015). One interesting study suggests the criticisms of finance since the financial crisis have triggered enthusiasm for cryptographic currency and thus raise our awareness of how finance should act as a servant of economy and society.…”

Section: Relevant Research On Complementary Currenciesmentioning

confidence: 99%

Small Business Social Responsibility: More than Size

Bendell¹

2017

Journal of Corporate Citizenship

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B e n d ell, Je m (2 0 1 7) C u r r e n cy in n ov a tio n fo r s u s t ai n a bl e fin a n ci n g of S M E s: c o n t ex t, c a s e s t u dy a n d s c al a bility. Jou r n al of Co r p o r a t e Citiz e n s hi p, 2 0 1 7 (6 7). p p. 3 9-6 2. Do w nlo a d e d fro m: h t t p://i n si g h t. c u m b ri a. a c. u k/i d/ e p ri n t/ 3 0 7 0/ U s a g e o f a n y i t e m s f r o m t h e U n i v e r s i t y o f C u m b r i a' s i n s t i t u t i o n a l r e p o s i t o r y 'I n s i g h t' m u s t c o n f o r m t o t h e f o l l o w i n g f a i r u s a g e g u i d e l i n e s .Any it e m a n d it s a s s o ci a t e d m e t a d a t a h el d in t h e U niv e r si ty of C u m b ri a 's in s ti t u tio n al r e p o si t o ry In si g h t (u nl e s s s t a t e d o t h e r wi s e o n t h e m e t a d a t a r e c o r d) m a y b e c o pi e d, di s pl ay e d o r p e rfo r m e d, a n d s t o r e d in lin e wi t h t h e JISC fai r d e ali n g g ui d eli n e s (av ail a bl e h e r e ) for e d u c a tio n al a n d n o t-fo r-p r ofit a c tiviti e s AbstractThe purpose of this paper is to introduce the topic of complementary currencies to the academy engaged in research on corporate responsibility and responsible finance, as well as the broader field of progressive management studies. It responds to the growing awareness that both managers and researchers need to address a systemic challenge of our time, concerning stagnating economies and growing inequality. An underlying cause of that problem is identified as mainstream monetary systems and the implications for inadequate financing of SMEs and microenterprises. The potential of currency innovation, from cryptographic currencies like Bitcoin, to local currencies and then to commercial barter and countertrade are discussed. Given the novelty of these phenomena for management studies in general and corporate responsibility in particular, an interdisciplinary literature review is presented. Then a case study of a complementary currency in an informal settlement in Kenya is presented and implications for the wider adoption of useful new currencies discussed. It concludes therefore that SMEs need certain types of complementary currency more than others and proposes that companies can engage in currencies as part of their corporate responsibility programmes as well as for direct business benefit.

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Are You Ready for Digital Currency?

Cited by 14 publications

References 0 publications

The token’s secret: the two-faced financial incentive of the token economy

The token’s secret: the two-faced financial incentive of the token economy

Blockchain futures: With or without Bitcoin?

Small Business Social Responsibility: More than Size

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