This module aims to:

Provide students with a comprehensive understanding of the evolving landscape of digital currencies, including their economic implications and the role of central banks, enabling them to critically analyse and engage with the current and future dynamics of the financial system.

Equip students with specialised knowledge and practical insights into digital currencies and crypto-assets, fostering a deeper theoretical understanding and preparing them for professional and academic paths in this rapidly developing field.

Expose students to a blend of practical applications, with a focus on traditional micro and macroeconomic frameworks, and recent scientific contributions in the field of digital currencies.

(LO1) Students will be able to succinctly define digital currencies, outline their historical evolution and discuss the role of decentralised finance within in the financial ecosystem.

(LO2) Students will be able to explain and discuss the underlying technologies of digital currencies, focusing on mechanisms such as blockchain technology, particularly in the context of Bitcoin.

(LO3) Students will be able to understand the benefits of CBDCs and critique their rationale and design, discussing their potential impacts on monetary policy through the analysis of various transmission channels.

(LO4) Students will be able to identify regulatory challenges facing digital currencies and discuss strategic responses by policymakers, by reviewing existing regulatory frameworks and highlighting their weaknesses.

(LO5) Students will be able to discuss the impact of innovations in digital finance and predict future trends by analysing case studies on the adoption of digital currencies.

(LO6) Students will be able to critically evaluate and articulate the ethical considerations, security risks and privacy issues associated with digital currencies, fostering a comprehensive understanding of the societal implications and responsibilities of deploying these technologies.

(S1) Problem solving skills
Students will analyse real-world challenges related to the integration of digital currencies into existing financial systems, applying theoretical frameworks to propose innovative solutions.

(S2) Adaptability
The module exposes students to the rapidly evolving field of digital currencies, including emerging technologies and regulatory landscapes.

(S3) Numeracy
Analysing case studies and financial models related to digital currencies and their markets enhances students' ability to work with numbers and complex mechanisms.

(S4) Commercial awareness
Discussions on the economic implications of digital currencies and the role of central banks develop students' understanding of the current financial ecosystem and its potential challenges.

(S5) Teamwork
Collaborative case studies foster the ability to work effectively in diverse teams, sharing insights and synthesising collective knowledge.

(S6) Organisation skills
Managing research, presentation and project deadlines in a complex and fast-moving subject area improves students' ability to organise workload and priorities effectively.

(S7) Communication and Written Skills
Engaging in debates and presenting findings on digital currency topics enhances students’ verbal and written communication skills, which are critical for articulating complex ideas clearly.

(S8) IT Skills
Direct interaction with digital currency technologies, including blockchain simulations or cryptocurrency wallet management, strengthens students’ technical competencies.

(S9) International awareness
By examining digital currencies on a global scale, the module teaches students about international financial systems and the importance of cultural considerations in finance.

(S10) Lifelong learning skills
A key objective of this module is to teach students on how to conduct their own research. Students will gradually learn how to approach and solve new problems by practicing the tutorial questions and completing their assessments.

(S11) Ethical awareness
The module teaches students to navigate the ethical considerations of digital currencies, focusing on privacy, security and financial inclusion.

2 hour lecture x 10 weeks
1 hour seminar x 5 weeks
125 hours self-directed learning

During self-directed learning time, students will be required to study the introduced scientific findings on digital currencies, as well as models and frameworks. The report will enhance their learning in an applied context.

Core Topics:

1. Introduction to digital currencies
Definition, history and decentralised finance
Different types of digital currencies (cryptocurrencies, CBDCs, stablecoins, etc.)

2. Technology behind digital currencies
Blockchain technology
How cryptocurrencies work (e.g. Bitcoin, Ethereum)

3. Monetary Policy and Central Bank Digital Currencies (CBDCs)
Rational for CBDCs
Design and potential monetary policy impact of CBDCs

4. Regulatory Challenges

5. Innovations and Future Trends
Decentralised finance (DeFi) and its impact on traditional finance

6. Case studies of businesses, financial institutions and countries adopting digital currencies

Incorporating these topics will provide students with a robust foundation in digital currencies, covering both the technical aspects and the broader economic and regulatory challenges. The course syllabus feeds into the 'Topics in Money and Banking' module in the second semester, which offers a more in-depth look into the banking sector. Since students will have already been exposed to models, financial and macroeconomic data, this will support their learning in the more banking-focused 'Topics in Money and Banking' module.