Impact of applying technology of digital currency on searching and bargaining costs towards resistance economy

Subject Areas : Financial engineering

maryam Farzanehrafat ¹ , amir gholami ² , Seyed Mohammad Mehdi Ahmadi ³

1 - Department of Economics, College Management and Social Science, Tehran North Branch, Islamic Azad University, Tehran, Iran.
2 - Department of Economics, College Management and Social Science ,Tehran North Branch, Islamic Azad University, Tehran, Iran.
3 - , Department of Economics, College Management and Social Science, Tehran North Branch, Islamic Azad University, Tehran, Iran.

Received: 2022-02-14 Accepted : 2022-04-23 Published : 2023-03-21

Keywords: resistance economy, block chain, Digital currency, Bargaining cost, Searching cost, Transaction cost theory,

Abstract :

Block chain technology as a promising innovation in the cyber space brings new opportunities. It serves not only the computer world but also other areas like the economy. The purpose of this study is to determine the effect of using block chain as the backend technology for digital currency on reducing costs in economic transactions, which has done in the period of 2019-2021. The hypothesis of the research claims that block chain enables us to reduce searching and bargaining costs towards resistance economy. This research benefits from a pluralistic method to study the impact of applying block chain technology in the field of economy. In doing so, three different methods were used in order to investigate the research hypothesis including theoretical analysis, interview with 20 experts and statistical inference. the findings indicated that applying block chain technology results in reduction of searching and bargaining costs. block chain immutability and decentralizing characteristic reduce searching and bargaining costs more than other features and the existence of distributed ledger has impact on decreasing both searching and bargaining costs. Moreover, block chain can be aligned towards the goals of the resistance economy by bringing new technology into the economy and reducing the costs.