FEASIBILITY OF SPOT CURRENCY TRADING UNIFIED WITH FIAT CURRENCIES AND ITS CHALLENGES - AN EDUCATIONAL PROCESS FOR STAKEHOLDERS

Abstract

Cryptocurrencies refer to electronic money that is transferred digitally and unbackable in computers through a platform called the blockchain. In other words, virtual money is encrypted with electronic codes and they can thus register transactions; hence, all digital currencies, including bitcoin and wallet coins can be a means of payment to replace physical money for providing goods and services, and can be used instead of fiat currencies at the national and transnational levels. There are various advantages for this replacement, such as reducing the production of banknotes and metal coins, but this development in the structure of monetary payments leads to legal and political challenges, and it is necessary to address this issue in the present research. As an introduction, the equality of the fiat and spot currencies should be measured and the possibility of applying the effects of fiat currency to spot currency and its advantages and disadvantages should be also analyzed and explained. Obviously, analyzing this issue and generalizing the characteristics of physical to virtual money will be effective and pioneering for domestic and international trade, and identifying the challenges of unification can provide a suitable platform for adopting preventive measures in terms of eliminating and controlling possible risks. On this basis, the present research analyzed the topics through data collection and desk analysis.