Abstract
Bitcoin is a decentralized virtual currency based on P2P technology. It enables the unique distribution of electronic value from one person to another without the existence of a centralized issuer. Virtual currency circulates in an open-looped system as if it were real money, whereas existing electronic money circulates in a closed-looped system. The decentralization issue of virtual currency raises a question concerning the seigniorage profit, which ought to be under state monopoly. In this article, we explain why the seigniorage profit is attributable to the state for what reason currency issuance should be decentralized. We also discuss the ideal public policy for virtual currency in order for decentralized currency to achieve justice as fairness.
