Cryptocurrency Adoption and Its Role in Reshaping International Financial Systems
Abstract
Bitcoin's skyward trajectory is fueling a lot of talk about its potential ability to change the world. Keywords: financial, crypto, regulationThis article is published via TheCoinRepublic.comThis article retraces how cryptocurrencies are becoming more increasingly accepted in global markets and the effects it can have on traditional financial. With the rapid development of technology and higher levels of globalisation, cryptocurrency is now decentralised system to replace traditional currency with advantages like lower transaction costs, greater security and easier transferability. However, such a complexity as the regulatory uncertainty, volatility and crime potential still needs to get out of your way. This paper uses mixed-methods methodology to combines quantitative analysis on global cryptocurrency adoption rates with qualitative interviews with industry experts and regulators. The data suggest that while bitcoin adoption is rising, its impact is uneven by region, largely reflecting diverging national legal regimes and economic conditions. Countries with economic crises are more likely to turn to crypto as a hedge against inflation and currency depreciation, while developed nations focus on regulatory involvement and progress in blockchain technology. This indicates a major shift in financial systems and it would force long-standing banking companies to evolve, or become obsolete. Perhaps the most transformational use case driven by crypto, is that of decentralised finance (or DeFi), which challenges traditional financial intermediaries. The paper concludes that bitcoin has the potential to democratise world banking; however, its long-term viability depends on regulatory harmonisation, technical improvement and confidence in decentralised systems. The study improves understanding of the evolving role of cryptocurrency specifically in world finance, and suggests future research directions related to governance and security.
