An efficient currency recognition system is vital for the automation in many sectors such as vending machine, rail way ticket counter, banking system, shopping mall, currency exchange service etc. The paper currency recognition is significant for a number of reasons. a) They become old early than coins; b) The possibility of joining broken currency is greater than that of coin currency; c) Coin...

This paper analyzes the feasibility of various types of currency unions, such as a dollar bloc, Euro bloc, Yen bloc, and basket currency bloc in East Asia, and empirically estimates welfare effects of a currency union for East Asian economies. Judging from optimum currency area (OCA) criteria, including the symmetry of output and price shocks across countries, commitment to price stability, and...

The paper uses a dual-currency search theoretic approach to demonstrate that it is possible to induce the acceptance of a local currency in a dollarized economy. In the model, we assume that a foreign currency is in full circulation and the government policy tool is the convertibility of the local currency to the foreign currency. We show that the economy can achieve equilibria where two monies...

♣ The authors are grateful to Doo Yong Yang, and participants in the 5th APEF International Conference on 5-6 July 2006 at Kangwon National University, Korea for their useful comments and suggestions. RIETI Discussion Papers Series aims at widely disseminating research results in the form of professional papers, thereby stimulating lively discussion. The views expressed in the papers are solely...

Designed to compete with fiat currencies, bitcoin proposes it is a crypto-currency alternative. Bitcoin makes a number of false claims, including: bitcoin can be a reserve currency for banking; hoarding equals saving; and that we should believe bitcoin can expand by deflation to become a global transactional currency supply. Bitcoin’s developers combine technical implementation proficiency with...