Researchers from the Federal Reserve Bank of new york said in a paper that cryptocurrencies such as Bitcoin are not new currencies, but new currency exchange mechanisms. ?

This paper was published in the journal Freedom Street Economics. The authors are Michael Lee and Anthony Martin from the Bank Research and Statistics Group of the Federal Reserve. The newspaper said. Bitcoin and other cryptocurrencies are usually described as a new type of currency, which we think is a misunderstanding. Bitcoin may be a currency, but it is not a new currency. Bitcoin has existed for centuries, but the ability to conduct electronic transactions without a trustee is brand new. Therefore, Bitcoin is not a new currency, but a new currency exchange mechanism, which can support various forms of currencies and other types of assets. ? In order to support this argument, this paper classifies currency and currency exchange methods. It divides currencies into three categories, namely legal tender, asset-backed currency and debt-backed currency. The difference between asset-backed currency and creditor-backed currency lies in the difference between secured creditor's rights and unsecured creditor's rights.

The paper points out? Legal tender is essentially a worthless thing. These items are valuable because people believe that they will be accepted in exchange for valuable goods and services. A typical example is paper money. Paper printed with twenty-dollar bills is almost worthless. However, the consumer can buy coffee with paper money, because the barista thinks she can buy valuable things with paper money.

Bitcoin is just another example of legal tender. ? The researchers also divided currency exchange mechanisms into three categories, namely, physical transfer, electronic transfer through trusted third parties and electronic transfer without third parties. Physical transfer is equivalent to direct payment with paper money or coins. Electronic transfer through a trusted third party is the use of most electronic payments today, and the absence of third-party electronic transfer is the unique feature of cryptocurrencies such as Bitcoin. By comparison, the paper points out that Bitcoin is not a new currency, and the popular stable currency is only one of the asset-backed currencies. This exchange method without third-party electronic transfer did not exist before 2009, and it is a real innovation of cryptocurrency. ?