  We introduce blockchains and distributed ledgers and describe their potential
applications to money and banking. The analysis compares public and private
ledgers and outlines the suitability of various types of ledgers for different
purposes. Furthermore, a few historical prototypes of blockchains and
distributed ledgers are presented, and results of their hard forking are
illustrated. Next, some potential applications of distributed ledgers to
trading, clearing and settlement, payments, trade finance, etc. are outlined.
Monetary circuits are argued to be natural applications for blockchains.
Finally, the role of digital currencies in modern society is articulated and
various forms of digital cash, such as central bank issued electronic cash,
bank money, bitcoin and P2P money, are compared and contrasted.
  Keywords: blockchains, distributed ledgers, digital currencies, modern
monetary circuit; credit creation banking; interconnected banking network.
