Digital Currency Research Articles

Does institutional quality matter for central bank digital currency adoption?

This study investigates whether institutional quality influences the adoption of Central Bank Digital Currencies (CBDC). To address this question, data from 85 countries spanning from 2013 to 2021 was analysed. This study employs logistic, probit, and ordinary least squares regressions to assess the impact of the independent variables. The results indicate that institutional quality significantly affects CBDC adoption, with higher institutional quality associated with a greater likelihood of adoption. An in-depth analysis reveals that 'voice and accountability' is the most critical factor within the institutional indices that significantly explains CBDC adoption. A higher value for 'voice and accountability' correlates positively with a higher probability of CBDC adoption. The findings of this study hold important implications for researchers, analysts, and policymakers.

Objects of Currency Legal Relationships in the context of Countering Restrictive Measures Imposed by Unfriendly States

The paper analyzes the process of expanding the list of objects of currency legal relations, including related to the policy pursued by the Russian Federation to counter restrictive measures imposed by the United States and unfriendly states and international organizations that have joined them. The author analyzes the category of «currency values». The author concludes that the category of currency values appeared due to legal and technical reasons: the use of the term «currency values» makes it possible to make the text of the document more concise, eliminating unnecessary enumeration of objects of currency legal relations. The author highlights that the current concept of attributing objects of currency legal relations to currency values leads to a hidden depreciation of the national currency of the Russian Federation. It is emphasized that the recognition of digital financial assets and hybrid digital rights based on them as objects of currency legal relations blurs the line between these digital rights and digital currency. At the same time, within the framework of currency relations, digital financial assets should be considered as an analogue of securities rather than as a currency. The reason why digital financial assets are recognized as an object of currency legal relations, but digital currencies are not, is that the latter do not have a person bound by them. The prognosis is made that due to the existing request and subject to the adoption of the necessary regulatory framework, digital currencies may become the object of currency legal relations and be used to a limited extent for cross-border settlements.

Perkembangan Digitalisasi Mata Uang Dari Perspektif Hadist Dan Hukum Di Indonesia

The development of the world, the more developed the financial world is to help humans manage and conduct financial transactions. The advancement of financial technology today is due to weakness factors in the previous financial world where modern or digital finance is more profitable and follows the times to make it easier for humans to transact. Currently the world is facing digitalization of almost all sectors used by humans and the financial world is inevitable, especially digital currencies that offer advantages such as faster transactions between countries with cheap fees, Decentralised so that it is not driven by any central bank is different from fiat where the strength of the currency depends on the country's policy, and digital currencies that are more transparent so that transactions can be tracked by anyone and are minimal from fraud

The Digital Pound: A Plan Designed to Fail?

The UK authorities have consulted on the issue of the ‘digital pound’, a retail central bank digital currency (CBDC) for general use in payments by UK households and firms. The stated ambition is a new form of central bank money, used alongside Bank of England notes and commercial bank deposits. There are inherent contradictions in these plans. Promoting adoption requires that users should be able to freely and conveniently receive and send digital pound payments and that account services can compete effectively with commercial bank transaction accounts. Containing the risks of retail CBDC to financial stability requires doing the opposite: limiting the use of the digital pound and handicapping account providers in their competition with commercial banks. To resolve this contradiction, ambition should be scaled back, focusing on specific and narrow use cases that cannot be easily addressed using commercial bank transaction accounts.

Development and Practice of Digital Currency, Challenges and Opportunities: The Case of Digital RMB

mid the vigorous development of the digital economy, the digital RMB is gradually becoming a key issue in the field of financial technology. The digital transformation of the RMB provides the financial industry with a strategic opportunity to shift from informatization to digital operations, aiming to enhance the efficiency of the financial system in serving the real economy, expand financial inclusion, and lay the foundation for the internationalization of the digital RMB. As the influence of the digital RMB continues to expand, the challenges encountered in its development, such as market adaptability, technical challenges, mechanism constraints, and the complex international environment, have become increasingly prominent. Therefore, in advancing the digital RMB, it is essential to continuously improve the monetary and financial legal system and regulatory framework, and to emphasize the importance of strengthening the construction of an international cooperation system, in order to promote the healthy development of the digital RMB and address the challenges of globalization.

TRANSAKSI CRYPTOCURRENCY DITINJAU DALAM PERSPEKTIF HUKUM POSITIF DAN HUKUM ISLAM

The Globalization system has had a huge impact on modern society, especially in the fields of science, technology, information and communication, all of which are developing rapidly. The most famous currency is Bitcoin or cryptocurrency. Because there are now no clear boundaries and no recognition of the existence of cryptocurrencies in Indonesia, these cryptocurrencies are facing a number of polemics regarding their use throughout the world, including in that country. The debate over whether Bitcoin is halal or haram in Islam continues among scholars who study the Koran, hadith, ijma and other Islamic books. One important area of expertise in the world of information security is cryptography. Today, professionals in the fields of computer science and mathematics discovered a new application of encryption that could improve the quality of life of local communities: the buying and selling of digital currencies known as cryptocurrencies. Digital currencies that are not subject to government regulation are known as cryptocurrencies; this does not include official cash. This cryptocurrency is the forerunner to the creation of digital currency which is now known as Bitcoin currency, which can be used like other types of money. And the result of the discussion is that whether scholars allow cryptocurrency or not. This research uses a qualitative method where this method focuses on in-depth observation. Therefore, the use of qualitative methods in this research can produce a study of a phenomenon that is more comprehensive with literature research. Based on the background information provided previously, the author identifies problems that require further investigation. Among other things, what is the meaning of cryptocurrency in the current understanding and context and what is Islamic law regarding the use of cryptocurrency as a transaction tool.

Multi-central bank digital currencies arrangements: a multivocal literature review

PurposeThe present study aims to systematically synthesize the academic and industrial literature on multi-central bank digital currencies (m-CBDCs) arrangements.Design/methodology/approachThe study adopted a unique multivocal literature review methodology that considers both white and grey literature. For white literature searches, the study relied on Scopus, Web of Science (WOS), and Google Scholar bibliometric databases; for grey literature searches, the study used the Google search engine.FindingsThe findings of the study illustrated that M-CBDC arrangements, through various design options, have the potential to revolutionize the contemporary international payment system. M-CBDC arrangements will lead to more integrated financial systems and promote economic growth. However, m-CBDC arrangements will also have serious macroeconomic implications, such as contagion and currency substitution risks.Research limitations/implicationsThe present review is one of the earliest reviews of m-CBDC arrangements. In addition, the findings of the study offer valuable insights for both academicians and policymakers.Originality/valueThe study is also one of the pioneer studies in management studies that apply a multivocal literature review methodology.

Centralized use of decentralized technology: Tokenization of currencies and assets

This paper presents a thorough examination of centralized use of a decentralized technology (blockchain) in monetary and financial systems at the national level. A comparative study is conducted to summarize the regulatory and legislative frameworks of currency/asset tokenization in seven major economies (US, EU, UK, Switzerland, Australia, Japan, and South Korea). China is then used as a case study to explore how blockchain technology is adopted to enable central bank digital currency, bond tokenization, and “currency bridge”. Based on various contexts analyzed, we extend the Technology Acceptance Model, highlighting the roles of perceived benefits, perceived risks, and collaborative leadership in building trust in and promoting adoption of tokenization. Policymakers and practitioners are recommended to follow a gradual, eclectic, and collaborative approach to tokenization.

Prediksi Harga Bitcoin Menggunakan Algoritma Long Short Term Memory (LSTM)

Cryptocurrency is a digital currency made from sequence code or called blockchain, one of the cryptocurrencies is bitcoin. Prediction is a process that projects or imagines what might happen in the future based on data in the past or factors that influence the current situation. Bitcoin price prediction uses a deep learning approach with the Long Short Term Memory method. Long Short-Term Memory is a type of model from the Recurrent Neural Network (RNN) algorithm, a method designed to process data and can overcome the problem of price movements that have long-term dependencies that cannot be handled by traditional RNN models, the LSTM model has the ability “Remembers” information over long periods of time, so as to recognize patterns and trends. In this study, the prediction period used a dataset from 12 December 2020 to 14 April 2024. The evaluation results for the RMSE method for train data were 17318.40 and for test data were 27921.84 and for the MAPE method for train data it was 3.24% and for test data it was 3.24%. 5.36%. This shows that the RMSE and MAPE values in the data train are relatively small because they are vulnerable to the bitcoin price being too wide.

Research on the Impact of Digital Currencies on the Internationalisation of the Renminbi and the Role of Promotion

The internationalisation of the RMB faces many opportunities and risks under the current new international development situation. It is precisely for this reason that the Chinese government should take every step carefully, and it should seize the opportunity now that the hegemony of the US dollar is loosening. The Chinese government is at the forefront of the development of the digital RMB and has already put it into practice many times. It has China's unique dual operation system, controlled anonymity and so on. The Chinese government should maintain the advantage, continuously improve the digital RMB standard, and vigorously develop the settlement system of digital RMB. This paper is based on the current status of the preliminary development of the central bank digital currency, analyses the advantages of the Chinese government's legal tender digital currency, for the study of the impact of the digital currency on the process of RMB internationalisation has a certain reference value.

Encouraging Sustainable Behavior in Urban Tourism through a Localized Gamified Digital Currency Model

Encouraging Sustainable Behavior in Urban Tourism through a Localized Gamified Digital Currency Model

CRYPTOCURRENCIES: ECONOMIC IMPACT AND REGULATORY CHALLENGES

The rise of cryptocurrencies, such as Bitcoin, has stimulated international discussions over how the banking system will look in the future, especially by showing its important connection to issues of bank stability, interest rates, and monetary policy. This research paper delves into the numerous ways that cryptocurrencies affect the traditional financial ecosystem, basing its findings on central studies investigating their economic, legal, and environmental implications. The paper explores the potential for cryptocurrencies to disrupt conventional banking systems, monetary policies, and regulatory structures through an analysis of the challenges and opportunities posed by decentralization. Also, it looks at cryptocurrency mining from an environmental perspective, paying attention to sustainable practices and technological advancements required to minimize ecological outcomes. This study comprehensively examines how digital currencies intersect with traditional financial systems, among which some insights are given as regards to coexistence of different types of money in current monetary frameworks that may lead to more inclusive finance systems having higher efficiency levels as well as stability. Finally, it stresses that while benefiting from them on one side, there is also a need for an equilibrium approach that addresses the risks inherent in these currencies together with their surroundings.

Exploring individuals’ purchase willingness for cryptocurrency in an emerging context

This study aims to investigate the influencing factors of consumers’ willingness to buy cryptocurrency in Malaysia. The targeted population of this study was Malaysian citizens who had knowledge about digital currency such as cryptocurrency. In this study, the data collection process was completed using an online survey questionnaire from several social media groups in Malaysia. They were sent a survey invitation to take part in, and after their approval, their responses were gathered. Five-point Likert scale has been used, where ‘1’ stands for “strongly disagree” and ‘5’ stands for “strongly agree”, to find out the item-wise questionnaire. The final sample size was n = 620. Moreover, 5% significance level and SPSS software were used to analyze the data and evaluate the hypotheses. The outcome of this study exposes that the perception of the price value of the cryptocurrency, perceived trust, and perceived security measure positively and significantly affect consumers’ willingness to buy cryptocurrency. Overall, these variables can explain 49.50% (R2 = 0.495) of the variance in predicting consumers’ willingness to buy cryptocurrency. It is found that among the three determinants, perceived trust (β = 0.569) in cryptocurrency had the highest impact on the intention among Malaysian consumers compared to other variables. This study contributes to the limited existing literature concerning Bitcoin and digital currencies, offering insights that can aid scholars in comprehending the significance of cryptocurrency and delineating its predominant impacts within the Malaysian cryptocurrency space.

Oil shocks and currency behavior: A dual approach to digital and traditional currencies

Given the financial markets' growing preference for examining digital platforms, this study explores the dynamic relationship of oil shocks with both conventional and digital currencies. It provides a novel approach for evaluating the relationship between aggregate oil, demand, and supply shocks using three conventional currencies (Japanese Yen, Chinese Yuan, and Euro), cryptocurrencies (Bitcoin, Ethereum, Tether), and DeFi tokens (Maker, Chainlink, and Basic Attention Token). We use wavelet analysis to test the asymmetric association among variables from June 22, 2018, to July 11, 2023. The outcomes of continuous wavelet confirm the volatile behavior of oil shocks and studied currencies. In particular, a nonlinear wavelet coherence is observed between oil shocks and DeFi tokens, cryptocurrencies, and traditional currency in the short, medium, and long term. Moreover, crypto and conventional currencies are found to respond more strongly to external events than DeFi tokens. Given the empirical findings and the rapid transformation of digitalized finance with ongoing currency restructuring, this study plays a critical role by actively influencing the adaptation of regulatory frameworks to align with dynamic changes in associations, serving as a strategic guide for regulatory bodies to navigate the complexities of emerging financial paradigms.

Probabilistic deep learning and transfer learning for robust cryptocurrency price prediction

Forecasting the price of Bitcoin (BTC) with precision is a complex endeavor, given the market’s inherent uncertainty and volatility, influenced by a diverse range of parameters. This research is driven by the central goal of introducing a specialized deep learning model tailored to predict digital currency prices, with a specific emphasis on BTC. To address this challenge, a pioneering strategy has been established, leveraging probabilistic gated recurrent units (P-GRU). This approach integrates probabilistic attributes into the model, facilitating the generation of probability distributions for projected values. The effectiveness of this method is assessed using one year of BTC price history, sampled at a five-minute interval. In parallel, a comparative analysis is conducted against alternative models, including GRU, long short-term memory (LSTM), and variants thereof (time-distributed, bidirectional, and simple models). In pursuit of optimizing model efficacy, a bespoke callback mechanism is deployed. This callback, driven by R2-score tracking, captures optimal model weights based on validation data. Moreover, a transfer learning paradigm is adopted to broaden the study’s horizons. A pre-trained model on BTC data is harnessed to predict prices for six other prominent cryptocurrencies: Ethereum, Litecoin, Tron, Polkadot, Cardano, and Stellar. Consequently, a distinct model is tailored for each cryptocurrency. The outcomes of this investigation conclusively underscore the superior performance of the proposed methodology. In the midst of a volatile and uncertain market landscape, the proposed approach outshines its counterparts, showcasing an enhanced ability for cryptocurrency price forecasting.

The Impact of Digital Currency Policies on International Trade and Investment

This paper examines the multifaceted impact of digital currencies on regulatory frameworks, cross-border transaction efficiency, and their integration into mainstream financial systems. Through an in-depth analysis of global policy landscapes, compliance challenges, market stability implications, and the burgeoning role of Central Bank Digital Currencies (CBDCs), we uncover the dynamics shaping the future of digital finance. Employing statistical analysis, econometric models, and case studies, we explore the reduction in transaction costs, increased speed and accessibility, and the security concerns associated with digital currencies. Furthermore, we analyze the trends in digital currency adoption and the potential for their integration with traditional financial systems. Our findings highlight the complex interplay between technological advancements and regulatory strategies, offering insights into the opportunities and challenges digital currencies present for the global economy.

The Impact of Digital Currency Policies on International Trade and Investment

This paper examines the multifaceted impact of digital currencies on regulatory frameworks, cross-border transaction efficiency, and their integration into mainstream financial systems. Through an in-depth analysis of global policy landscapes, compliance challenges, market stability implications, and the burgeoning role of Central Bank Digital Currencies (CBDCs), we uncover the dynamics shaping the future of digital finance. Employing statistical analysis, econometric models, and case studies, we explore the reduction in transaction costs, increased speed and accessibility, and the security concerns associated with digital currencies. Furthermore, we analyze the trends in digital currency adoption and the potential for their integration with traditional financial systems. Our findings highlight the complex interplay between technological advancements and regulatory strategies, offering insights into the opportunities and challenges digital currencies present for the global economy.

A Review of Central Bank Digital Currency: Current Status and Changing Trends

Since the emergence of the Central Bank Digital Currency (CBDC), which digitally represents the legal currency of the country in which it is created, significant developments have been experienced in the global financial environment as a result of the changes brought about by the innovations. Although CBDCs offer various advantages, such as cost reduction, financial inclusion, and increasing the efficiency of payment systems, they may create some disadvantages, such as the risk of dysfunctionalization of the banking sector or decreasing the level of security. At this point, it is necessary to be aware of the possible risks it may create and to develop an optimum strategy in case such risks arise to establish a successful CBDC system and benefit from its advantages. In this context, the aim of this study is to analyze all aspects (emergence process, positive/negative sides, projects, use cases, and technical infrastructure to be used) of this digital currency and to make a comprehensive evaluation of CBDC applications around the world. The evaluations show that many countries are not indifferent to this new digital currency, which has a very high development potential, and continue their research intensively in order not to fall behind the steps taken in CBDC.

An interpretable model for large-scale smart contract vulnerability detection

Smart contracts hold billions of dollars in digital currency, and their security vulnerabilities have drawn a lot of attention in recent years. Traditional methods for detecting smart contract vulnerabilities rely primarily on symbol execution, which makes them time-consuming with high false positive rates. Recently, deep learning approaches have alleviated these issues but still face several major limitations, such as lack of interpretability and susceptibility to evasion techniques. In this paper, we propose a feature selection method for uplifting modeling. The fundamental concept of this method is a feature selection algorithm, utilizing interpretation outcomes to select critical features, thereby reducing the scales of features. The learning process could be accelerated significantly because of the reduction of the feature size. The experiment shows that our proposed model performs well in six types of vulnerability detection. The accuracy of each type is higher than 93% and the average detection time of each smart contract is less than 1 ms. Notably, through our proposed feature selection algorithm, the training time of each type of vulnerability is reduced by nearly 80% compared with that of its original.

DIGITAL CURRENCY: RUSSIAN AND CHINESE EXPERIENCE

The rapid development of new technologies, such as big data, blockchain, and artificial intelligence, has propelled the digital economy to the forefront of history, necessitating the ability to adapt, keep up with the times, and improve legal regulations. In 2023, the Russian Federation took significant steps towards the introduction of the digital ruble. Specifically, transactions with the digital ruble were tested for the first time with the participation of real customers, and the State Duma adopted several important legal acts that amend the current legislation and regulate the introduction of the digital ruble in Russia. However, the swift evolution of digital currencies is not exclusive to Russia, many countries are grappling with the development and implementation of a new form of money. This form aims to simultaneously enhance the transparency and reliability of transactions while contributing to the stability of the national currency. In this article, we propose to examine the features of legal regulation and the conduct of transactions with digital currency, using the experiences of both the Russian Federation and the People's Republic of China as examples