Despite the fact that many countries argue that the value of their national currency against the currencies of other countries is determined by the free market, in fact almost all Central banks influence the markets to exchange and trade currencies.
Many economists and analysts for years to develop a scheme by which it would be possible to determine whether the intervention of the Central Bank, as well as the level of this intervention. The most well known indicators which are used to track and measure this impact is a comparison of the prices of gold and oil in the international market, as well as the famous big Mac index.
However, all these methods are far from ideal due to many drawbacks, such as complexity and high cost of obtaining real market data. Even if you manage to get the right data, they may not be relevant, as they will be already 2-3 years. And finally, the source can be unreliable and you get a useless set of digits.
And in March 2018, at the annual conference of the Royal Economic Society’s, Dr. Gina Pieters (Pieters Gina) reported studies where analysis of bitcoin prices can be used to detect manipulation by Central banks, and to identify the existence of controls over the movement of capital.
This can be done by comparing the value of bitcoin on the major cryptocurrency exchanges. The stronger the deviation rate from the average value, the stronger is the pressure on the currency of the country where cryptocurrency exchange rate which is very different from the global.
«According to the survey, bitcoin is a new tool that allows you to detect the presence of controls over the movement of capital,» says Dr Peters.
In addition, Peters is confident that its methodology can be applied to other economic systems.