‘Revolutionary’: Finland Central Bank Paper Heaps Praise on Bitcoin

Researchers at Finland’s central bank have dubbed bitcoin’s economic system “revolutionary.”

In a new staff paper released on September 5, economists at the Bank of Finland revealed the results of an investigation into the ins and outs of bitcoin’s infrastructure, as well as their finding that the technology constitutes a “monopoly run by a protocol.”

Overall, the three authors – Gur Huberman, Jacob Leshno and Ciamac Moallemi – contend that this characteristic offers a degree of protection against manipulation by bad actors by virtue of the protocol-layer dynamics.


The group write:

“Bitcoin is a monopoly run by a protocol, not by a managing organization. Familiar monopolies are run by managing organizations with discretion to determine and then change prices, offerings and rules. Monopolies are often regulated to prevent or at least mitigate their abuse of power.”

Other notable assertions featured in the paper include the argument that, because of this state of affairs, bitcoin itself “cannot be regulated.”

“Bitcoin cannot be regulated. There is no need to regulate it because as a system it is committed to the protocol as is and the transaction fees it charges the users are determined by the users independently of the miners’ efforts,” the authors state.

Though the document itself states that the views enclosed don’t represent the official stance of the Bank of Finland, the publication is undoubtedly a notable one given the central bank’s involvement with the tech to date.

Last year, it organized a seminar on blockchain that included regulators, local academics and companies in an effort to support local research – a move spurred further along by the government as well. The city of Kouvola in Finland, for example, received €2.4m to test blockchain-powered shipping. 

The paper’s authors closed by advocating for deeper research by other academics.

Must READ:   Americans Are Taking Out Mortgages to Buy Bitcoin

“[Bitcoin’s] apparent functionality and usefulness should further encourage economists to study this marvelous structure,” the three write.

Image Credit: Kiev.Victor / Shutterstock.com

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [email protected].

3 Replies to “‘Revolutionary’: Finland Central Bank Paper Heaps Praise on Bitcoin”

  1. Hi this is kinda of off topic but I was wanting to know if blogs use WYSIWYG editors or
    if you have to manually code with HTML. I’m starting
    a blog soon but have no coding skills so I wanted to get advice from someone
    with experience. Any help would be enormously appreciated!

  2. May I simply just say what a relief to discover someone who truly knows what they are discussing online.
    You certainly know how to bring an issue to light and make it important.
    A lot more people need to read this and understand this side of the
    story. I was surprised that you’re not more popular because you
    surely have the gift.

Leave a Reply

Your email address will not be published. Required fields are marked *