Digital Currency Research Articles

Current Development and Future Outlook of China CBDC (e-CNY): A Literature Review

The great success of Bitcoin has drawn the attention of the world to the field of digital currency. Stablecoins and CBDC have come out right after cryptocurrencies. This study focuses on analyzing CBDC, especially China CBDC (e-CNY), elaborating and comprehending arguments from several outstanding essays in this field. In this study, the author summarizes the development history of e-CNY, concludes the competitive advantages of e-CNY over other types of payment methods, points out the potential shortcomings of e-CNY, and implements possible solutions. In order to provide reliable suggestions and recommendations, the author has compared e-CNY with several existing CBDC from different countries and regions in the world, including CBDC from Singapore, Canada, and England. In the short run, China CBDC can enhance finance monitoring and reduce M0 supply. In the long run, it could stimulate the internationalization of the RMB and boost the evolution of the global monetary system.

The impact of Fintech innovations on digital currency adoption: a blockchain-based study in India

Purpose The purpose of this study is to integrate customer value theory (CVT) and protection motivation theory (PMT) to understand the factors that have an impact on customer experience, e-trust and intention to recommend, which influence the adoption behaviour of digital currency users. Design/methodology/approach A purposive sampling technique was used, and data were gathered through an online survey of 414 respondents. The measurement and structural models were tested using partial least squares structural equation modelling to establish linkages between the constructs. Findings Functional, emotional and social values positively impact customer experience. Furthermore, perceived severity, perceived vulnerability, response efficacy and self-efficacy had a positive impact on e-trust. E-trust positively affects customer experience and intention to use the digital currency directly. The study demonstrated that perceived value and protection motivation factors play a significant role in influencing the use of digital currency. Practical implications For managers and policymakers interested in the Indian digital currency market, it is suggested that functional utility and emotional and social benefits can enhance user satisfaction. In an e-trust model, user education to increase risk and protection awareness, effectiveness of responses and self-efficacy are critical to building e-trust. Originality/value Building on CVT and PMT’s usage in the broader financial services domain, this research empirically confirms the significance of perceived value and protection motivation factors while adopting digital currency. It provides an extensive and multifaceted approach to comprehending customer involvement and trust in digital financial services, thus enhancing the theoretical and empirical knowledge of both the fintech and blockchain industries.

Do CBDCs promote financial inclusion and strengthen the monetary regulations?

Digital currencies are impacting the financial lives of people and countries around the world; particularly developing countries see the retail Central Bank Digital Currencies (CBDCs) as an opportunity to increase financial inclusion and introduce new monetary policy implementation mechanisms. The decision to launch a digital currency mainly depends upon the goals and objectives being set by the Central Bank of any respective country. Digital currencies help to implement monetary policy more effectively to achieve the financial system stability. Kazakhstan is the leading economy in the Commonwealth of Independent States region; the digital payments market is changing rapidly in Kazakhstan, being driven by fintech innovations and public investments in payment technologies. In this article, we thoroughly discussed how launching of “Digital Tenge” is promoting financial inclusion and strengthening the monetary regulations across Kazakhstan. We took the case of Kazakhstan because it’s the first country from Central Asia which took the initiative of launching digital currency, and the National Bank of Kazakhstan has already announced that implementation of “Digital Tenge” would be completed in Kazakhstan by the end of 2025. The implementation of a “Digital Tenge” as a CBDC in Kazakhstan would expand the range of financial services being available to the nation. Having direct authority over the digital currency will empower the National Bank of Kazakhstan to adopt more efficient monetary policy, exerting influence over interest rates, money supply, and general economic stability. Furthermore, by providing digital financial services to marginalized communities, the digital Tenge would also help to solve the difficulties of financial inclusion in Kazakhstan. The article provides the possible policy routes for the governments of developing countries and the financial regulators about adopting CBDCs for promoting financial inclusion and to strengthen the monetary regulations.

DiFastBit: Transaction Differentiation Scheme to Avoid Double-Spending for Fast Bitcoin Payments

Bitcoin is a payment system that generates a decentralized digital currency without ensuring temporal constraints in its transactions; therefore, it is vulnerable to double-spending attacks. Karame has proposed a formalization for a successful double-spending attack based on meeting three requirements. This focuses on fast payment scenarios where the product is delivered immediately after the payment is announced in the mempool, without waiting for transaction confirmation. This scenario is key in Bitcoin to increase the probability of a successful double-spending attack. Different approaches have been proposed to mitigate these attacks by addressing one or more of Karame’s three requirements. These include the following: flooding every transaction without restrictions, introducing listeners/observers, avoiding isolation by blocking incoming connections, penalizing malicious users by revealing their identity, and using machine learning and bio-inspired techniques. However, to our knowledge, no proposal deterministically avoids double-spending attacks in fast payment scenarios. In this paper, we introduce DiFastBit: a distributed transaction differentiation scheme that shields Bitcoin from double-spending attacks in fast payment scenarios. To achieve this, we modeled Bitcoin from a distributed perspective of events and processes, reformulated Karame’s requirements based on Lamport’s happened-before relation (HBR), and introduced a new theorem that consolidates the reformulated requirements and establishes the necessary conditions for a successful attack on fast Bitcoin payments. Finally, we introduce the specifications for DiFastBit, formally prove its correctness, and analyze DiFastBit’s confirmation time.

Blockchain Technology and Its Potential to Benefit Public Services Provision: A Short Survey

In the last few years, blockchain has emerged as a cutting-edge technology whose main advantages are transparency, traceability, immutability, enhanced efficiency, and trust, thanks to its decentralized nature. Although many people still identify blockchain with cryptocurrencies and the financial sector, it has many prospective applications beyond digital currency that can serve as use cases for which traditional infrastructures have become obsolete. Governments have started exploring its potential application to public services provision, as confirmed by the increasing number of adoption initiatives, projects, and tests. As the current public administration is often perceived as slow, bureaucratic, lacking transparency, and failing to involve citizens in decision-making processes, blockchain can establish itself as a tool that enables a process of disintermediation, which can revolutionize the way in which public services are managed and provided. In this paper, we will provide a survey of the main application areas which are likely to benefit from blockchain implementation, together with examples of practical implementations carried out by both state and local governments. Later, we will discuss the main challenges that may prevent its widespread adoption, such as government expenditure, technological maturity, and lack of public awareness. Finally, we will wrap up by providing indications on future areas of research for blockchain-based technologies.

The Digital Currency "Armament Race" of Central Banks

The Digital Currency "Armament Race" of Central Banks

Blockchain in Banking: Possible Use Cases and Benefits

Abstract Whilst Blockchain has usually been associated with Web3 and cryptocurrencies, that is, Decentralized Finance (DeFi), this technology can be used in countless other areas, such as banking, Central Bank Digital Currencies (cbdc s), healthcare, smart contracts, financial services, supply chain management, insurance, Internet of Things (IoTs), video games …, not much has been written about applying Blockchain technology to the traditional, Banking and Finance industry. This article will focus on how blockchain is or can be applied to the Banking industry, by analyzing a few possible use cases and its benefits, and, more importantly, it will also focus on whether it is worth it for the Banking industry to use it or not.

Understanding Bitcoin and Blockchain

Blockchain is the technology that enables the existence of cryptocurrency. Bitcoin is the name of the most recognized cryptocurrency, the one for which blockchain technology, as we currently know it, was created. A cryptocurrency is a medium of exchange such as the US dollar, but is digital and uses cryptographic techniques and its protocol to verify the transfer offunds and control the creation of monetary units. Keywords: crypto, digital currency, blockchain, bitcoin.

The Impact of Cryptocurrency on Money Laundering Practices

The coming of cryptocurrencies has, amazingly, changed the face of the financial space. It has opened up opportunities and challenges in the field of money laundering. The deep impact of cryptocurrencies on the practice of money laundering becomes a detailed study. Since digital currencies are embedded with inherent characteristics, such as anonymity, decentralization, and the ease of performing cross-border transfers, criminals have now found new ways to conceal their illicit financial activities. The paper critically reviews how cryptocurrencies are used in money laundering schemes, evaluates the effectiveness of current legal provisions and anti-money laundering measures, and reviews case studies that exemplify real-world applications and challenges to regulatory bodies. Moreover, it offers recommendations on the use of new technologies, like blockchain analytics, toward better detection and prevention of money laundering through cryptocurrency. The paper thus provides a range of useful insights, associated with recommendations for the strengthening of the global regulatory framework in dealing with the increased threat of cryptocurrency money laundering, through a synthesis of the literature review, case analysis, and expert interviews. The paper contributes to this debate by providing insight into the challenges that regulatory authorities face and making recommendations to improve anti-money laundering efforts in the cryptocurrency space. This is done through an in-depth review of recent cases and legislation in this area. The findings were that, though cryptocurrencies pose a great challenge, innovative technology solutions coupled with international cooperation can play a vital role in mitigating the risks associated with cryptocurrency-based money laundering.

Modern Applications of Blockchain Technologies in Contemporary Times: A Systematic Review

Blockchain technology is one of the most innovative and versatile technological advancements of contemporary times, finding applications in various fields such as finance, healthcare, education, and real estate. This paper provides a systematic review of blockchain technology, its historical evolution, fundamental concepts, different types of blockchain, and its various applications. The study also explores the key characteristics of blockchain, including decentralization, transparency, and immutability, and discusses the challenges and limitations faced by the technology, such as scalability issues, security concerns, and regulatory challenges. Additionally, the paper looks into future trends and developments in blockchain technology, particularly advancements in consensus algorithms, integration with other emerging technologies, and the rise of Central Bank Digital Currencies (CBDCs) and Decentralized Finance (DeFi).

A novel central bank digital currency framework design for offline and foreign transactions based on blockchain

Purpose Fiat money production necessitates physical commodities, increasing costs and its flow is challenging to monitor, making it vulnerable to criminal exploitation. Cryptocurrencies offer decentralized solutions, but their decentralization has led to illegal activities. Current cross-border transactions face high costs, resource intensity and lack of instant currency transfers. Offline transactions are essential in unreliable networks. Design/methodology/approach Here, the authors proposed the methodology to perform offline transactions based on card, quick response (QR) code and a foreign transaction framework with universal identification (UID) to perform cross-border transactions using blockchain-dependent central bank digital currencies (CBDCs). Implications for the financial system are also analyzed. Findings The proposed CBDC framework reduces illegal transactions, corruption and the cost of producing fiat money; eases overseas transactions; and eventually increases international tourism, trade and business between countries. It also reduces the processing fees. Offline framework found useful for performing retail-level transactions. Research limitations/implications The research methodology may face limitations due to diplomatic relations, political instability, sanctions and the need for robust offline transaction infrastructure. Practical implications The proposed CBDC framework simplifies debt and insurance management, tax collection, international trade, tourism and global stock market participation. However, implementing CBDCs in low-income countries presents challenges like extensive training, infrastructure and user acceptance issues. Social implications The adoption of CBDCs can enhance financial stability by reducing corruption and illegal transactions through improved traceability and monitoring, thereby curbing activities like terrorism. Originality/value Common framework for foreign transactions is based on the UID, and offline transaction framework is based on the sender’s QR code for multiple user applications.

Financial Legal Aspects of Legal Regulation of Digital Currency Circulation

Financial Legal Aspects of Legal Regulation of Digital Currency Circulation

Theoretical and legal issues of defining digital currencies as an administrative and legal phenomenon

The last decade has seen a rapid growth of innovations in the field of IT technologies, one of the consequences of which was a change in the approach to the payment system – for the first time in human history, electronic records rather than real funds were provided in exchange for goods and services, which made it possible to represent money and currencies in a virtual form. The emergence of cryptocurrencies and the development of electronic payment systems have created the basis for the emergence of digital currencies, a technological innovation that performs the exchange functions of money, but operates outside the modern banking sector and has developed outside the supervision of monetary regulators. Since the first digital currency, bitcoin, was created, the digital currency market has been growing rapidly and has already become significant for the global economy. Currently, digital currencies are widely used in the economic and legal environment of Ukraine. Despite certain attempts by the national legislator to regulate relations in the field of digital currencies, a number of aspects remain unaddressed by the legislator, there is legal uncertainty regarding activities related to digital currencies, there is no regulation of the procedure for the activities of entities providing services in the field of digital currencies, and, most importantly, the terminology for defining the definition of digital currencies in the legal plane is not regulated at the doctrinal level. This is important in the context of the development of administrative law and the related phenomenon of "digital currency". The purpose of the paper is to study the theoretical and legal issues of defining digital currencies as an administrative and legal phenomenon. The paper examines the definition of the category «digital currency» – a digital object intended for payment functions contained in the form of a set of electronic data (digital code or designation) in an information network operating on the basis of distributed ledger technology, the circulation of which is regulated by administrative law. The analysis has shown that there are numerous approaches to understanding legal relations in the field of digital currency circulation. These relations are based on the principles of discretion and equality of the parties with a mandatory method of legal regulation. Therefore, administrative legal relations in the field of digital currencies are social relations regulated by administrative law regarding the possession, use and disposal of digital currencies in accordance with the rules of administrative law.

Digital Currencies in Light of Artificial Intelligence, Effects and Negatives: Iraq is An Example

The digital monetary system in the modern era is based on money. It occupies a leading position in economic studies and in all current economic transactions. It is a digital cash system, an advanced system for electronic money that was invented by unknown parties in 2008. The main goal behind its invention was to get rid of the capitalist system and the official authorities’ control over the issuance of digital currencies and to come up with a new technology that, with its technological confidence, replaces the role of control and supervision in central banks, that is, in light of artificial intelligence. Dealing with it has been banned in Iraq because it leaves effects and problems on the economic level that cannot be easily overcome. This topic was addressed through two sections. The first dealt with research into encrypted digital currencies in terms of their economic nature, while we devoted the second section to researching and clarifying how to invest in them and their negative and positive economic effects digital currencies electronic money, artificial intelligence.

Legality of Bitcoin in the Perspective of Fiqh Muamalah

This study investigates the legality of Bitcoin from the perspective of Fiqh Muamalah through qualitative analysis and literature review. Fiqh Muamalah, an Islamic jurisprudential framework, regulates economic transactions according to Sharia law. The research examines whether Bitcoin, as a digital currency, aligns with Islamic legal and ethical standards by analyzing scholarly articles, religious texts, and fatwas issued by Islamic scholars. Key considerations include Bitcoin's nature as a currency, its speculative role, and potential for illicit activities. Findings reveal diverse scholarly opinions, with some viewing Bitcoin as permissible under specific conditions, while others raise concerns about its speculative nature and lack of intrinsic value. This study aims to provide comprehensive insights into Bitcoin's legality within Fiqh Muamalah, offering valuable information for policymakers, financial institutions, and Muslim investors.

The Disruption of Cryptocurrencies as a Method of Payment and Its Implications for the Financial System: Evidence from the United States

In the past decade, the emergence of Blockchain has questioned certain financial institutions. Cryptocurrency upsurge was aimed at conducting financial transactions with more efficiency while being safer, easier, faster, and cheaper. Thus, over-intermediation in finance has been highlighted by Blockchain emergence. Here, a SWOT will be carried out to examine Blockchain and cryptocurrencies, their monetary role, their impact on a financial system based on banking intermediation, and their influence on the future of central banking. About the United States, this paper concludes that cryptocurrencies will eventually spread as a method of payment, which could lead them to be the new form of money under some assumptions. The eventual adoption of blockchain technology by central banks through the introduction of official digital currencies could favor the creation of a more inclusive financial system in the future.

Digitization adoption in developing countries: Investigating the factors affecting intention to use digital currency in Vietnam

In the contemporary landscape characterized by technological advancements and a progressive economic environment, the utilization of currency has undergone a paradigm shift. Despite the growing prevalence of digital currency, its adoption among the Vietnamese population faces several challenges, including limited financial literacy, concerns over security, and resistance to change from traditional cash-based transactions. This research aims to identify these challenges and propose solutions to encourage the widespread use of digital currency in Vietnam. This research adopts a quantitative approach, utilizing Likert scale questionnaires, with a dataset of 330 records. The interrelationships among variables are analyzed using partial least squares structural equation modeling (PLS-SEM). The analysis results substantiate the viability of the research model, confirming the hypotheses. The findings demonstrate a positive relationship and the significance impact of factors such as perceived usefulness (PU), perceived ease of use (PEOU), perceived trust (PT), social influence (SI), openness to innovation (OI), and financial knowledge (FK) to intention to use digital currency (IUDC). Thereby aiming to inform policymakers, industry stakeholders, and the wider community, fostering a deeper understanding of consumer behavior and providing solutions to enhance the adoption of digital currency in the evolving landscape of digital finance.

The single supranational BRICS digital currency as a factor of independence from the dollar-centric international financial system

The single supranational BRICS digital currency as a factor of independence from the dollar-centric international financial system

Blockchain technology in financial services: enhancing security, transparency, and efficiency in transactions and services

Blockchain technology revolutionizes financial services by enhancing security, transparency, and efficiency in transactions and services. This paper examines the fundamental aspects of blockchain, including its core concepts and components, and explores its application in financial services. Blockchain's cryptographic hashing, decentralization, and immutability significantly improve security by preventing tampering and reducing fraud risks. Increased transparency through immutable audit trails, real-time updates, and open ledgers fosters trust among customers, regulators, and institutions. Furthermore, blockchain streamlines operations by automating processes, reducing intermediaries, and expediting transactions, resulting in substantial cost reductions and improved efficiency. Despite these advantages, challenges such as scalability, interoperability, regulatory uncertainty, and environmental impact must be addressed for widespread adoption. The prospects of blockchain in financial services are promising, with potential applications in decentralized finance, digital identity verification, and central bank digital currencies. This paper underscores the transformative potential of blockchain technology in creating a more secure, transparent, and efficient financial ecosystem.

Perlindungan Hukum dan Kebijakan Tarif Pajak terhadap Trader Crypto di Indonesia

Cryptocurrency investment in Indonesia has become an increasingly popular topic as people's interest in digital assets increases. Although there is potential for huge profits, there are also risks that need to be considered. The Indonesian government takes a cautious stance in regulating cryptocurrencies. Clear regulations still do not exist, although in 2019, the Commodity Futures Trading Supervisory Agency (BAPPEBTI) issued regulations recognizing cryptocurrencies as commodity futures that can be traded on futures exchanges. Bank Indonesia has issued a statement reminding the public of the risks associated with the use of digital currencies, but there has been no outright ban on their use. There are also concerns regarding the misuse of cryptocurrencies for illegal purposes, such as money laundering and terrorism financing, which are continuously monitored by governments and financial regulatory agencies. Despite regulatory uncertainty, interest in cryptocurrencies continues to grow in Indonesia, and more and more companies and individuals are interested in understanding and using this technology.