not backed by any authority i.e. not fiat currencies. In Section \[sec:value\] we discuss this question in more detail from both the traditional metalist views on currency value generation and more recent (and perhaps less orthodox) monetary theories, such as the Modern Monetary Theory (MMT) in this context. We discuss issues relating to monetary theory and resultant economic policy implications that may arise under each of these frameworks, if crypto-currencies were to interact more widely with the real economy.

In this environment of fast-paced technological evolution, financial innovation is running ahead of regulation. For example, the transaction anonymity provided by transacting in the Bitcoin network is a clear driver for several operational risks, money laundering, fraud and legal risk, as discussed at length in @peters2014opening. Government responses have been mixed, and while they want to be careful not to overburden the budding sector of financial innovation with excessive regulation and curtail growth in the area, there is a need to ensure that the new services are not used to circumvent regulation in traditional banking services. Section \[sec:regulation\] will summarise regulatory interventions in some major economies.

Physical and electronic forms of money, and the development of crypto-currencies {#sec:differences}
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In this 