Discussion Papers

UCL CBT Associates Discussion Papers

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UCL CBT Discussion Papers

Abstract

Cryptocurrencies offer an alternative to traditional methods of electronic value exchange, promis-ing anonymous, cash-like electronic transfers, but in practice they fall short for several key reasons.We consider the false choice between total surveillance, as represented by banking as currently im-plemented by institutions, and impenetrable lawlessness, as represented by privacy-enhancing cryp-tocurrencies as currently deployed. We identify a range of alternatives between those two extremes,and we consider two potential compromise approaches that offer both the auditability required forregulators and the anonymity required for users.