Introduction to Cryptocurrency

Cryptocurrencies (or crypto) are digital financial instruments exchanged and recorded on public ledgers (known as blockchains) that do not require central intermediaries (e.g., commercial banks, central banks) for clearing and settlement. Users and transactions are public but pseudonymous, which means users’ identities may be obscured. Initially introduced as payments tools, cryptocurrencies are mostly used as a form of investment.

This In Focus introduces crypto market structure, regulatory frameworks, and policy issues.