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title: 'Trends in crypto-currencies and blockchain technologies: A monetary theory and regulation perspective'
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Introduction
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It has been 20 years since Bill Gates opined: ‘Banking is essential, banks are not’. The early 21st century has seen a proliferation of fintech (financial technology) firms, providing a wide and varied array of services, from payments and local and international money transmission through to financing through peer-to-peer lending and crowdfunding. Venture capital funding in the UK for fintech related business has increased to over \$500 million in 2014, while the sector is estimated to contribute more than GBP 20 billion to the economy[^1]. A number of countries have stated their intention to create an eco-system in which such businesses can grow, which can only mean the continued growth of the sector in the foreseeable future.

In parallel to these innovations, which aim at reducing the friction of making payments and transfers in fiat currency, which have been facilitated by electronic money (“e-money”), there has also been a rise in the use of virtual and crypto-currencies. While the former have traditionally been utilised in virtual economies, such as those of an online game or community [@lehdonvirta2014virtual], the latter 