A Hayekian flatcoin: Commodity-reserve logic for a blockchain monetary standard

Abstract This paper proposes a Hayekian flatcoin, i.e. a blockchain-based currency whose value is defined by a continuously adjusted basket of commodities and maintained through competitive private issuance. It begins from the observation that contemporary stablecoins reproduce the inflationary bias of state-issued money by pegging to fiat currencies. Much of the cryptocurrency literature draws on F. A. Hayek’s 1970s writings, notably Choice in Currency and Denationalisation of Money , to justify this practice, yet it neglects his 1943 essay A Commodity Reserve Currency , which offers a concrete mechanism for a money of stable purchasing power. Revisiting that earlier proposal and drawing on later Austrian monetary theory and historical evidence of commodity standards, the paper shows how modern blockchain technology can implement Hayek’s rule-bound design. The result is a proposed monetary standard that would use blockchain infrastructure to implement Hayek’s commodity-reserve logic. A Hayekian flatcoin could offer an inflation-resistant alternative to fiat-backed stablecoins and illustrate how entrepreneurial innovation can extend the market order in the digital age.