Cryptocurrencies have transitioned from being a fringe fascination to a mainstream financial force. Bitcoin, Ethereum, and an array of other digital assets now occupy a significant place in global finance. Despite this shift, economic theory has yet to catch up. Traditional monetary frameworks, designed around fiat currencies and central banks, often fall short in addressing the decentralised and algorithm-driven nature of cryptocurrencies.The urgency for economists to construct a robust monetary theory of cryptohas become even more evident with US President Donald Trump’s recent announcement of a proposed national cryptocurrency reserve. Under the plan, the US government would hold Bitcoin, Ether, XRP, Solana, and Cardano as part of its financial reserves, underscoring the growing strategic importance of digital assets.
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