Can digital currency technology help reduce transaction costs and improve access to financial services for underbanked populations?
Subject Areas : Agriculture Marketing and Commercialization
1 - Algeria
Keywords: Digital Currency, Financial Services, Transaction Costs,
Abstract :
Research on the impact of digital currency technology on exchange costs is progressing, with studies highlighting various aspects. Blockchain technology is seen as a mechanism that can reduce transaction costs by enforcing contract execution through encryption, bringing transactions closer to the conditions of a perfectly competitive market. Additionally, digital currency issuance can influence currency circulation speed and money multiplier, affecting financial system risk and supervision. While the influence of Bitcoin on exchange rates is noted to be negligible, the importance of embracing decentralization and digital money for cost reduction and transparency in enterprises is emphasized. Furthermore, the introduction of central bank-issued digital currencies (CBDCs) is being explored, with different design options impacting transaction costs for various stakeholders. Research on the impact of digital currency technology on exchange costs is progressing, with studies highlighting various aspects. Blockchain technology is seen as a mechanism that can reduce transaction costs by enforcing contract execution through encryption, bringing transactions closer to the conditions of a perfectly competitive market. Additionally, digital currency issuance can influence currency circulation speed and money multiplier, affecting financial system risk and supervision. While the influence of Bitcoin on exchange rates is noted to be negligible, the importance of embracing decentralization and digital money for cost reduction and transparency in enterprises is emphasized. Furthermore, the introduction of central bank-issued digital currencies (CBDCs) is being explored, with different design options impacting transaction costs for various stakeholders.
_ Bjerg, O. (2016). How is Bitcoin money? Theory, culture & society, 33(1), 53-72.
_ De Meijer, C. R. (2016). The UK and Blockchain technology: A balanced approach. Journal of Payments Strategy & Systems, 9(4), 220-229.
_ DuPont, Q., & Maurer, B. (2015). Ledgers and Law in the Blockchain. Kings Review, 23.
_ Guo, Y., & Liang, C. (2016). Blockchain application and outlook in the banking industry. Financial innovation, 2, 1-12.
_ Ilinka, Antova., Tahar, Tayachi. (2019). Blockchain and Smart Contracts: A Risk Management Tool for Islamic Finance. doi: 10.12785/JIFS/050103
_ Jie, Huang. (2023). Research on Blockchain Architecture and Operating Principles Based on H-DAG. Symmetry, doi: 10.3390/sym15071361
_ Kiviat, T. I. (2015). Beyond bitcoin: Issues in regulating blockchain tranactions. Duke LJ, 65, 569.
_ Liebenau, J., & Elaluf-Calderwood, S. (2016). Blockchain innovation beyond bitcoin and banking. Available at SSRN 2749890.
_ Lindman, J., Tuunainen, V. K., & Rossi, M. (2017). Opportunities and risks of Blockchain Technologies–a research agenda.
_ Mougayar, W. (2016). The business blockchain: promise, practice, and application of the next Internet technology. John Wiley & Sons.
_ Moutaz, Abojeib., Farrukh, Habib. (2019). Blockchain for Islamic Social Responsibility Institutions. doi: 10.4018/978-1-5225-7805-5.CH010
_ Mougayar, W. (2016). The business blockchain: promise, practice, and application of the next Internet technology. John Wiley & Sons.
_ Mori, T. (2016). Financial technology: Blockchain and securities settlement. Journal of Securities Operations & Custody, 8(3), 208-227.
_ Narayanan, A., Bonneau, J., Felten, E., Miller, A., & Goldfeder, S. (2016). Bitcoin and cryptocurrency technologies: a comprehensive introduction. Princeton University Press.
_ Pilkington, M. (2016). Blockchain technology: principles and applications. In Research handbook on digital transformations (pp. 225-253). Edward Elgar Publishing.
_ Pilkington, M. (2016). Blockchain technology: principles and applications. In Research handbook on digital transformations (pp. 225-253). Edward Elgar Publishing.
_ Parra Moyano, J., & Ross, O. (2017). KYC optimization using distributed ledger technology. Business & Information Systems Engineering, 59, 411-423.
_ Rechtman, L., & Marom, D. M. (2017, March). Rectangular versus circular fiber core designs: New opportunities for mode division multiplexing? In 2017 Optical Fiber Communications Conference and Exhibition (OFC) (pp. 1-3). IEEE.
_ Rechtman, Y. (2017). Blockchain: The making of a simple, secure recording concept. The CPA Journal, 87(6), 15-17.
_ Rastogi, Himanshu. (2022). an Overview of Blockchain Technology: Architecture and Consensus Protocols. doi: 10.1002/9781119785569.ch12
_ Sai, A. R., Buckley, J., Fitzgerald, B., & Le Gear, A. (2021). Taxonomy of centralization in public blockchain systems: A systematic literature review. Information Processing & Management, 58(4), 102584.
_ Samadi, M., Schriemer, H., Ruj, S., & Erol-Kantarci, M. (2021, October). Energy blockchain for demand response and distributed energy resource management. In 2021 IEEE International Conference on Communications, Control, and Computing Technologies for Smart Grids (SmartGridComm) (pp. 425-431). IEEE.
_ Tapscott, D., & Tapscott, A. (2016). Blockchain revolution: how the technology behind bitcoin is changing money, business, and the world. Penguin.
_ Tsai, H., Nie, W., Blancon, J. C., Stoumpos, C. C., Asadpour, R., Harutyunyan, B., ... & Mohite, A. D. (2016). High-efficiency two-dimensional Ruddlesden–Popper perovskite solar cells. Nature, 536(7616), 312-316.
_ Witte, J. H. (2016). The Blockchain: a gentle four page introduction. arXiv preprint arXiv:1612.06244.
_ Workie, H., & Jain, K. (2017). Distributed ledger technology: Implications of blockchain for the securities industry. Journal of Securities Operations & Custody, 9(4), 347-355
