Cryptocurrencies: Are Disruptive Financial Innovations Here?

Abstract

Digital currencies, virtual currencies, in-game currencies, etc., have gathered a lot of attention, despite the difficulties of definition, from all corners of society for many years. Cryptocurrency has gained unprecedented attention since the birth of Bitcoin in 2009. Bitcoin is an online system of making and receiving payments in bitcoins. The system distinguishes itself by providing an opensource, cryptographically secure, confidentiality-preserving platform for transactions and/or making payments. The number of transactions as well as the number of accounts (held by individuals and businesses) is steadily increasing. A whole industry of service-providers has sprung up alongside. We consider the development of Bitcoin and its sister currencies as an important disruptive financial innovation which is here to stay unless throttled by ill-considered legislative or regulatory actions. Potential problems are analyzed and solutions offered. The overall assessment is that cryptocurrencies and variants of virtual currencies are a welcome development, they will offer competition to the existing modalities of money and governmental regulation, they will provide alternative means to economic agents for their transactions, and their innovative existence should be encouraged so that their beneficial features outperform any deleterious ones.

Portfolio optimization in the era of digital financialization using cryptocurrencies

“…These innovations included the technology behind the blockchain or ledgers and the decentralized ways of governance. Many authors have argued that the blockchain technology that works behind the cryptocurrencies is a potential breakthrough in financial innovation ( Glaser and Bezzenberger, 2015 ; Su et al., 2019 ; Vora, 2015 ). Olusegun Vincent& Olaniyi Evans (2019) also conducted an empirical study, showing that higher levels of financial inclusion and development were observed in China, India, Nigeria, and South Africa, for higher levels of cryptocurrency, internet usage, and mobile subscriptions .…”

Motivations of Retailers Accepting Cryptocurrency Payments and Their Implications on Retail Customer Experience

“…In addition, there are more than 17 thousand cryptocurrency ATMs in 68 countries worldwide, and their number is increasing day by day (Coin ATM Radar, 2021). Businesses are inclined to accept cryptocurrency payments in addition to traditional payment methods to attract the attention of new generation consumers and achieve positive results on sales and marketing efforts (Vora, 2015;Andrei et al, 2019). The increasing adoption and spread rates of digital currencies have become the priority policies of some states and their international organizations.…”

“…(Ciaian and Rajcaniova, 2016). Also, businesses are inclined to accept cryptocurrency payments and traditional payment methods to attract the attention of new generation consumers and achieve positive results on sales and marketing efforts (Vora, 2015;Andrei et. all, 2019).…”

The use of ict in teaching English grammar in secondary schools

“…2. Vora (2015) claims that cryptocurrencies and variants of virtual currencies are a welcome development, they will offer competition to the existing modalities of money and governmental regulation, they will provide alternative means to economic agents for their transactions, and their innovative existence should be encouraged so that their beneficial features outperform any deleterious ones. Bitcoins are here to stay suggest the above mentioned author, unless considered illegitimate by governments or banned by regulatory actions.…”