# Privacy Coins ### [How Do Private Digital Currencies Affect Government Policy?](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3437529) [[2019-08-20]], revised [[2020-06-17]] *This paper provides a systematic evaluation of the different types of digital currencies. We express skepticism regarding centralized digital currencies and therefore focus our economic analysis on private digital currencies. ==Specifically, we highlight the potential for private digital currencies to improve welfare within an emerging market with a selfish government. In that setting, we demonstrate that a private digital currency not only improves citizen welfare but also encourages local investment and enhances government welfare.==*