Shadow Exchange Rates – Changing the Winds with Headwinds and Tailwinds

Abstract

This paper summarizes the arguments and counterarguments within the academic discussion on the issue of double exchange rates – official exchange rates and unofficial exchange rates – produced by the cryptocurrency bitcoin (BTC). The policy conclusion of this research is that cryptocurrency exchange rates ought to be monitored by authorized organizations because of unsustainable price volatility. The relevance of the decision of this scientific problem is that some unofficial exchange rates are likely to have higher volatility caused by BTC’s bubble and burst than by the official exchange rate.