Abstract
Monetary and financial policies are a set of decisions and actions taken by monetary and government
authorities in order to influence a set of economic activities. Monetary policies control money supply in line with liquidity management for economic sustainability and stability, and digital currencies are new technologies used to replace financial transactions. Due to the spread of cryptocurrencies in transactions and the increasing investment in this area, we investigate the relationship between monetary and liquidity base variables with digital currencies, so the purpose of this study is to investigate the Granger causality relationship between digital currency and monetary and liquidity base variables in It is Iran. In this research, the studied period is from 1380 to 1400. In order to investigate the Grangerian causality relationship, the error correction model is used.First, the variables are tested in terms of meaning and the presence of structural failure with Biperon method. The results show that the price of Bitcoin in 2017 has a structural failure and it is tested despite its static failure. Finally, the results of the Granger causality test showed that the monetary base has a significant effect on liquidity in the long and short term, and liquidity has an effect on the monetary base in the short term, but has no relationship in the long term. Also, Bitcoin has no short-term or long-term relationship with any of the variables