Abstract
Abstract Recent technological developments have led to economic changes that have an impact on the macroeconomic and microeconomic levels in developing countries, as well as in developed ones. The introduction of cryptocurrencies (Bitcoin is the first cryptocurrency, made public in 2009) into the economy through blockchain technology, generated a series of benefits, but also significant risks for citizens, companies and states. The main purpose of this article is to present the operating mechanism of the blockchain system and cryptocurrencies, their advantages and disadvantages and the attempts of the international authorities to regulate the crypto market. The authors will present also few case studies of tech start-ups that leveraged the versatility of blockchain principles into viable business propositions. Romania makes no exception in this field, so the authors will analyze and present the current status of this industry.
Highlights
The technological evolutions that have taken place in the last 20 years have allowed the realization and issuance of virtual money, as an alternative to the traditional financial system, which with the crisis of 2008 generated a lot of mistrust and concern from the population
This article aims to review the advantages and disadvantages of cryptocurrencies and the authorities' attempts to react and regulate this technological innovation that will benefit users and investors and avoid generating negative effects such as terrorist financing, money laundering, tax evasion, etc., as well as a study focused on main tech start-ups active in this sector in Romania, performing a market survey based on available public sources
Some countries have expanded and adapted the laws on organized crime, money laundering and terrorist financing so that they can cover the issue of cryptocurrencies, so that they are able to require financial institutions and banks to meet the requirements imposed by the laws issued. In this case we find Canada and Australia who have developed and adopted laws on transactions with cryptocurrencies and institutions operating in this field, on money laundering and terrorist financing
Summary
The technological evolutions that have taken place in the last 20 years have allowed the realization and issuance of virtual money, as an alternative to the traditional financial system, which with the crisis of 2008 generated a lot of mistrust and concern from the population. Citizens' reluctance regarding banking services has led to a reevaluation and the possibility of adopting a virtual currency, independently, with lower transaction costs. Internet access has encouraged the widespread use of the blockchain system and cryptocurrencies. The virtual currency, Bitcoin, put into circulation in 2009 represented a financial revolution. Blockchain technology has been rapidly adopted in applications in various industries, creating platforms designed to store, transmit and manage digital information. The nature and volatility of cryptocurrencies lead to an increase in their popularity and especially in their use
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