Revolutionary: The Central Bank of Finland bets on Bitcoin

Researchers at the Central Bank of Finland have described Bitcoin's economic system as "revolutionary."

In a new article published on September 5, economists at the Bank of Finland unveiled the results of an investigation into the details of Bitcoin's infrastructure, as well as its conclusion that technology is a "protocol-driven monopoly."

In general, the three authors (Gur Huberman, Jacob Leshno and Ciamac Moallemi) claim that this feature offers a degree of protection against the manipulation of the bad actors thanks to the dynamics of protocol layers.

The group writes :

"Bitcoin is a monopoly run by a protocol, not by an administering organization. Family monopolies are managed by discretionary management organizations to determine and then change prices, offers, and rules. Monopolies are often regulated to prevent or at least mitigate their abuse of power. "

Other notable statements contained in the document include the argument that, because of this situation, Bitcoin itself "can not be regulated".

"Bitcoin can not be regulated. There is no need to regulate it because as a system it is committed to the protocol as it is, and the transaction fees charged to users are determined by the users, regardless of the efforts of the miners, "say the authors.

Although the document itself indicates that the views it contains do not represent the official position of the Bank of Finland, the publication is certainly noteworthy given the central bank's involvement with technology to date.

Last year he organized a blockchain seminar that included regulators, local academics and companies in an effort to support local research. This initiative also received government support. The Finnish city of Kouvola, for example, received 2.4 million euros to test the shipments mediated by blockchain.

The authors of the article concluded by advocating for further research by other scholars.

"The apparent functionality and utility of [Bitcoin] should further encourage economists to study this wonderful structure," they said.

Source: CoinDesk