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ROLE OF CRYPTOCURRENCIES IN CROSS-BORDER TRANSACTIONS
1. Introduction to Cryptocurrencies
1.1 Definition and History
Cryptocurrency can be described as a new kind of tender that is digital and virtual in nature with
elements of cryptography to enable it to secure information about the transactions that it carries
out. Cryptocurrencies were invented and designed in approximately the late 2000s, starting with
the biggest and most well-known cryptocurrency – Bitcoin. This digital currency is not a creation
of any government or financial institution but it was developed by a pseudonym known as
“Satoshi Nakamoto”. However, the concept of Bitcoin came as a new creation and implemented
the use of blockchain as a distributed open ledger for all the transactions that take place within a
given network. This development aimed at solving the dilemma of double spending where exact
expenditures list by the user is debited twice in sequential orders without the aid of a central
body of control which was recommended by Nakamoto in his introduction of the online currency
known as Bitcoin (Nakamoto, 2008). Because of the fast growth of Bitcoin and the realization of
its potential, more advanced forms of Cryptocurrency have been created which are referred to as
altcoins. Many of these altcoins had several developments and enhancements over the initial idea
of Bitcoin. For example, Ethereum is in mainstream notoriety for effectively popularizing smart
contracts which are self-effacing contracts whereby the terms of the contract are directly coded.
Another popular altcoin, which has established a clear focus, is Ripple that is aimed at providing
instant cross-border payments (Blandin et al. , 2020). Cryptocurrencies also depict a progressive
skepticism in the traditional financial systems especially after 2008 financial crisis as analyzed h
pattern of their historical formation. Cryptocurrencies emerged as new experiment digital assets
with ordinally very low prices and are recognisable mostly to tech-savvy millions and pioneers.
Nonetheless, they have changed their status and become highly-standardized and well-priced
financial assets traded in the marketplace. At the end of 2020, the cryptocurrencies had gone
through many high and low but were still an exciting subject for all the investors, be them small
or large-scale (Howell et al. , 2020).
Although they are volatile in nature, they could be effective in targeting one particular class of
investors that are the speculative ones. It is important to explore the reason why people invest
their money in the market: the profits are high, despite the market‟s riskiness. Such fluctuations
are caused by the regulatory announcements relating to the company and its industry, changes in
the technology and sentiments of the trading market (Klaus, 2019). The often-discussed
possibilities of high returns in case of the best outcomes keep investors involved and inspired
ensuring their further active investment in cryptocurrencies. Cryptocurrencies history to examine
their current place in monetary system: History of cryptocurrencies is thus, one of the crucial
aspects that would help to determine their status in the monetary system. Despite Bitcoin is the
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first decentralized digital currency that appeared in the marketplace, the current technologies
present in the digital currency space are quite varied, and the emergence of cryptocurrencies can
be attributed to a range of further technological, economical, and social properties worldwide.
Most coins moreover, utilize a revolutionary technology called blockchain, which therefore,
provides more secure means of maintaining a record of transactions. This is not only concerned
with digital currencies but also the prospects for using in many fields of economy, for example,
in supply chains, healthcare and others. A historical overview of cryptocurrencies furthermore,
indicates that they can become an instrument changing classical configurations of financial
relations and form new economic interactions. For example, Decentralized finance (DeFi) that
are applications and services that work without central authorities let users lend, borrow, and
trade assets on blockchain-based application. This innovation hence, challenges globally,
structured financial systems, because it makes banking and credit more available and assessable
to people. Smart contracts within the decentralized finance system eliminate the use of
middlemen, and this boosts the efficiency of transactional processes (Garratt & Lee, 2020).
In this paper, it is more so established, that the economic influence of cryptocurrencies is not
isolated in the realm of finance and money-sharing. The distributed structure of the networks and
the level of anonymity that they offer has prompted questions about compliance with the law or
even potential for malice. Various governments and regulatory authorities across the total globe
are still researching on how they can prosecute the Cryptocurrency markets appropriately to offer
a mean defense to consumers and to locate a balance in between stability and innovation. It will
be observed that the regulators will have a very influential role to determine whether the
cryptocurrencies are sustainable in the long run or will be accepted by society. The term
cryptocurrency therefore, defines a new kind of digital or virtual money that plays the role of
transferring information in transactions by applying cryptographic principles. When Satoshi
Nakamoto introduced the first variant of Bitcoin, this led to the advancement of new methods of
digital financial operations that use the blockchain as the main record-keeping tool. The
subsequent development of many other cryptocurrencies, such as Bitcoin which has fascinating
functions, has enriched the cryptocurrency world. Based on the historical liberalism, one can
conclude the increasing doubtfulness of the classical financial models and the possibility of
cryptocurrencies to affect the classical financial dizmension. It is moreover, interesting why
some people think that cryptocurrencies have no future while others believe that they are gaining
more and more influence in the monetary system; to answer these questions, it is necessary to
understand the subject and its history.
1.2 Popular Cryptocurrencies
As mentioned earlier, many cryptocurrencies have been developed since Bitcoin, but few have
stood out because of the characteristics they possess, the popularity that they have gained, and
the advancements in the technology that they possess. The advent of Bitcoin is renowned as the
first most recognized cryptocurrency with qualities like digital gold due to scarce like and store
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of value (Liu & Tsyvinski, 2021). Bitcoin is theerfore, the most established digital currency in
the market and exhibits high liquidity and market dominance along with adequate security,
providing established investors with a medium of entry for newer currencies. Ethereum is
another popular cryptocurrency that is famous for presenting the idea of smart contracts which
are basically contracts in form of code that execute themselves (Jürrip Tallinn et al. , 2018).
Ethereum had realized that through this, the network could support a broad scope of
decentralized applications (DApps) apart from mere transactions that different developers can
build upon. Through the programmable blockchain transaction feature, Ethereum has become a
home to many of the early adopter decentralized applications or Dapps in DeFi as well as NFTs
(Catalini & Gans, 2020). Ripple (XRP), on the other hand, sets its aim at providing immediate,
global payments to certain banks and financial establishment, setting it apart from Bitcoin and
Ethereum as the platform stress speed and minimal cost per transaction (Gouveia, 2021).
Another crucial factor is that Ripple does not depend on mining, which helps it extensively save
on energy in contrast with such cryptocurrencies as Bitcoin, which have major proof of work.
This efficiency hence, has lured various linkages to cooperate with different banks and other
financial institutions wishing to ease international operations. Some other existing
cryptocurrencies are as follows: Litecoin, this is commonly known as the digital silver to
Bitcoin‟s digital gold and its transactions are confirmed faster compared to Bitcoin, another
digital currency is the Cardano cryptocurrency which was designed to provide a more secure and
scalable blockchain platform by relying on research (Baur et al. , 2021). These cryptocurrencies
explain the potentials seen in the use of cryptocurrencies and different developments of block
chain in as much as each seeks to solve some of the constraints in an existing technology. The
use of these cryptocurrencies cannot be explained by appreciations in technology alone but rather
by the numerous opportunities they hold to solve different economic and financial issues. These
digital currencies remain the pioneers of leading cryptocurrencies that have great potential for
defining the future of the digital financial system (Corbet et al. , 2020).
1.3 Blockchain Technology
Therefore Bitcoin and Ethereum, are based on the blockchain technology, which is a distributed
ledger system that allows recording transactions within and between multiple computers while
maintaining their security and confidentiality. The blocks include a list of transactions and are
combined in a linked manner sequential to the creation of the block through use of chains
referred to as cryptographic hashes (Narayanan et al. , 2016). This structure mandates that no
single individual or entity can manipulate previous transaction records without endorsement
from the other members of the blockchain network; thus the high levels of security of this
technology against fraud and manipulation. Therefore, some of the key benefits of using the
blockchain technology include that it offers decentralised systems where people can engage in
trustless transactions. In comparison, while conventional financial systems require a third party
such as a bank to authenticate and confirm the transactions, blockchain offers end-to-end user
transactions. The decrease in their dependency on the third parties can also reduce the transaction
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costs and enhance the effectiveness of financial activities (Catalini & Gans, 2020). For instance,
Bitcoin opens up possibilities of secure and uncomplicated transactions of value aided by the
Blockchain technology but not requiring a central authority; a plus in such areas that have weak
or even nonexistent authorities. The blockchain of Ethereum expands these properties by
including smart contracts self-executing contracts wherein the terms of the contacts are encoded
into the logic of the contracts. In simple terms, smart contracts contain the terms governing a
particular relationship, and once specific conditions are triggered, the contract executes and
enforces the relationship without the need for intermediaries; this improves the efficiency of
transactions (Cong & He, 2019). Besides, there are developments made that seek to address the
scalability issue is through sharding, which looks to split the blockchain into a number of smaller
manageable factions referred to as shards. Every shard maintains a part of the transactions, and
this makes the network to work with different transactions at the same time (Peterson, 2021).
Proof-of-stake (PoS) consensus mechanisms that are more energy-efficient than proof-of-work
(PoW) systems are therefore preffered by Bitcoin. In doing so, PoS lowers the computational
complexity involved in validating transactions within this technology, thereby ensuring
blockchain and digital currencies‟ sustainability (Das et al. , 2020). In general, blockchain
eradicates the prospect of analog crime, becomes more transparent, and possesses the ability to
revolutionize different sectors of the economy. It has continued to evolve and being used across
the globe, there is a clear indication that this is necessary in the future of digital finance and
beyond (Garratt & Lee, 2020).
2. Benefits of Cryptocurrencies
2.1 Lower Transaction Fees
However, with crypt currencies, one of the greatest advantages of working with cross border
payments is the ability to enjoy reduced transaction charges. Mobile money also known as M-
commerce suffers from a number of challenges that limits its growth and the use of technology in
the banking system these include, The following are the traditional banking systems and money
transfer services that have high charges for international transactions especially for transactions
that involve conversion of money from one currency to other. While traditional methods of
remitting money require a middleman to complete the transaction, cryptocurrencies directly
enable individuals to transact with one another, thus eliminating the requirement for expensive
facilitators during cross-border transactions (Frost, 2020). For instance, bitcoin is or rather was a
decentralized unit of digital currency in which fees paid by the users is based on the current
demand of the network and not a fixed percentage and is often cheaper than other existing
financial services wherein nakamoto (2008). Through the realisation and implementation of
blockchain technology in the usage of cryptocurrencies, the solidity of the process helps in
increasing its transparency and its inability to allow the imposition of further undisclosed
charges. Since the use of Cryptocurrencies does not involve any intermediaries such as banks
and payment processors, several fees incurred with cross-border transactions are avoided
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(Peterson, 2021). For instance, Ripple (XRP) aims to enable cross-border payment at a low cost
through its cryptocurrency using a bridge of different fiat money to dodge the expensive charges
loyalized by formal banks (Gouveia, 2021). Furthermore, understanding the efficiency of their
capacity in the processing of transactions that have no restrictions to geographical locations leads
to reduced cost of operations. This efficiency is therefore important as it helps to expedite the
remittance services that allow migrants to send money back to their home countries. These
transactions cost much less than transferring money through a bank hence the recipients of the
money can benefit greatly especially when they rely on such funds to sustain themselves (Baur et
al. , 2021). Relatively, the coins ensure that such individuals can be able to make the
international transfers at lesser prices when compared to normal fees charged. Freedom from
higher transaction fee charges thus makes it more suitable in the processing of the cross-border
transaction compared to the existing financial systems. Beyond the narrow self-organizational
benefits of cryptocurrencies, its cost efficiency also prompts profound social interoperability and
economic enfranchisement potential in the world (Catalini & Gans, 2020).
2.2 Faster Processing Times
Cross-border practices are substantially facilitated through the use of cryptocurrencies, especially
due to the fact that dealing with cryptocurrencies is much faster in comparison with the
traditional banking system. Cross border money transfers using the traditional mechanisms can
take a few days to be completed because of multiple intermediaries, checking routines and
settlement intervals (Narayanan et al. , 2016). Indeed, the elimination of the management of
transnational fluctuation through monetary value is a truly remarkable development in the field
of cryptocurrencies, which the development of the blockchain made possible to achieve nearly
instantaneous transactions with no regard to geography. Transactions in the Bitcoin network, for
instance, can take approximately 10 minutes to be verified, whereas Ethereum and Ripple can
take less than 5 minutes based on the research conducted by Blandin et al. , 2020. A major
reason why blockchain technology is capable of handling a large number of transactions is due to
the fact that it is a distributed system, meaning it does not require third party entities. Within
each transaction, an array of nodes determines the consensus mechanisms for quick confirmation
and settlement procedures (Garratt & Lee, 2020). This characteristic is especially beneficial in
international transactions, where most computers based systems are slowed down by the fact that
working hours in different parts of the world are different and intermediate banks may be in
different territories. Venturing into the details of cryptocurrencies such as Ripple (XRP), these
are designed specifically to enhance cross-border payment systems. Currently, Ripple‟s
consensus can process transactions in many seconds and thus reveals much higher efficiency in
comparison with traditional system that takes days for the same operation (Gouveia, 2021). This
speed is vital for the businesses that may engage in the international operation where the money
has to be sent or received at a certain interval to cater for the business requirements. For instance,
firms that participate in international commerce would prefer faster payment processing as this
cuts away methods that are associated with likelihood of settlement delays which eventually
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affect the business and supply chain (Howell et al. , 2020). Also, the efficiency of the currency
transactions through the use of blocks can greatly improve the liquidity in the development of
this systems in the Third World countries where the common banking services are unavailable.
In that way, cryptocurrencies can free people and small companies from having to engage with
large firms in order to transfer money quickly and without any need for an intermediary like a
bank (Catalini & Gans, 2020). This therefore enhanced transaction velocity perhaps captures the
essence of what cryptocurrencies have in store for financial systems globally, which is to fast
embrace cutting edge reforms in their operations.
2.3 Increased Security
Cryptocurrencies present secure methods than the traditional technique for executing cross
border payments, and this is because of the incorporation of blockchain. Since blockchain is a
decentralized and cryptographic platform that prevents unauthorized access and manipulation of
records through cryptography, the transactions are well protected, transparent, and permanent.
Each transaction is stored in a block and is connected to the previous block forming a structure
that cannot be changed, and hence, it cannot be fraudulent or hacked (Narayanan et al. , 2016).
This security feature will be most useful for cross border transactions which are normally
associated with high risk of fraud because of the many length and linkages involved in the
traditional financial value chain (Catalini & Gans: 2020). There are some benefits of the kind of
security in cryptocurrencies, where transaction is accomplished with the help of public and
private keys. Such keys allow any holder to enable a certain transaction by authenticating it, thus
greatly minimizing chances of forging and embezzlement (Nakamoto, 2008). For instance,
through use of a public ledger, the identities of the individuals involved in the transaction are not
easily recognizable and the use of Bitcoin offers double security, that is privacy. This
cryptographic security is stronger than the financial systems and tends to be most less secure
when authenticating the identities of those involved (Peterson, 2021). In addition, the structure of
blockchain implies the absence of a single decision-making center, and various activities occur
simultaneously. For instance, in the conventional financial structures, central databases contain a
lot of corporate and individual data and are vulnerable to hacking and exposing consumers‟
secrets with hefty financial repercussions. Unlike centralized networks, a blockchain network has
numerous nodal parties all over the world meaning that it can be almost impossible for hackers to
change the records of any transaction without the consensus of the entire network (Garratt &
Lee, 2020). They feared that if the core functions were not made more decentralized, then the
overall security and transaction integrity may be undermined. Cryptocurrencies also, provide for
security and decrease the threat of charges back and the presence of fraud within the framework
of international transactions. Cryptocurrency transaction has the added benefit than as soon as it
is loaded on the block chain, it cannot be reversed without the consent of the recipient and this
would help the merchants avoid fraudulent charge back. This feature is particularly useful in
international purchases and sales where customers or sellers are likely to engage in fraudulent
activities or even when there is a disagreement since the jurisdiction of different countries differs
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(Gouveia, 2021). Thus, it can be stated that practice of cryptocurrencies as a form of money is
rather safe because these financial instruments offer quite high level of security compared with
traditional currencies. The use of cryptography and decentralised nature of blockchain
technology make it highly immune to fraud and cyber hacking allowing for secure global
financial transactions (Catalini & Gans, 2020).
3. Challenges and Risks
3.1 Regulatory Issues
The first major concern of cryptocurrencies is regulatory risk which is rather expressed as lack of
legal clarity and coherence. Today, various approaches towards cryptocurrencies and
decentralised systems have been established: from complete illegality to legislation and
incorporation into a country‟s financial system. The presence of fragmented or limited
regulations poses much challenges towards a smooth integration of cryptocurrencies across
global markets (Frost, 2020). For example, some countries, including Japan and Switzerland
have willingly accepted the use of cryptocurrencies and even set down clear laws and regulations
for the usage of the digital coins, while others such as China and India have followed rigid
measures, if not an outright ban to the usage of the cryptocurrencies (Garratt & Lee, 2020). Lack
of standard measures makes it even more difficult in adhering to the laws, particularly for those
undertaking transnational business or experiencing transnational movements themselves. Based
on this, cryptocurrencies are currently in a legal limbo, and hence investors cannot ascertain
whether the assets should be legal tender or subjected to tax, AML regulations and consumer
protection laws. This has a negative impact on the acceptance of cryptos because it hinders other
genuine companies and business organizations from adopting digital currencies for the fear of
running afoul of the laws that govern the country they operate in (Blandin et al. , 2020).
Moreover, unstable regulation may result in negative consequences, because those who want to
contribute to schemes related to money laundering or financing illicit operations can successfully
apply to this rule and come into the legal industry (Gouveia, 2021). It is also important to ponder
on an aspect regarding to the regulatory issues of the cryptocurrencies. Those, depending on
legal status, may be considered as currencies, commodities or securities and the classification
means different legislative treatment. For instance, the US Securities and Exchange Commission
(SEC) has developed a rigid stance in setting general guidelines and categorizing some
cryptocurrencies as securities, meaning that they have to undergo relentless regulatory
compliance, which hinders trade across borders (Howell et al. , 2020). This kind of classification
challenge does not only have legal implications that shape the legal status of cryptocurrencies but
also impacts the nature of the different markets where they are traded, and the actions of
investors in these markets as well. Due to these challenges, there have been calls made for the
increase in international cooperation and synchronization of legislation governing
cryptocurrencies. For instance, the straightforward integration of monetary policies applied to
cryptocurrencies can help manage the operating risks given that more homogeneous levels of
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regulation are established across borders (Narayanan et al. , 2016). Measures like these would
have to be implemented as a policy coherence strategy since adoption of cryptocurrencies is
surrounded by different challenges which need to be understood . Consequently, both the horns
of the dilemma point towards untangling regulatory challenges as key to instating cryptocurrency
systems, which need to be integrated with the global financial system while protecting against
digital currency misuse.
3.2 Market Volatility
Market volatility is thus a grave challenge associated with the use of cryptocurrencies in cross-
border transactions. Cryptocurrencies are hence, known for their price volatility, with values
often experiencing dramatic fluctuations within short periods. This volatility can be attributed to
various factors, including speculative trading, market sentiment, regulatory news, and
macroeconomic events (Baur et al., 2021). For example, Bitcoin, the largest cryptocurrency by
market capitalization, has seen its price swing from a few thousand dollars to over ,000 within a
couple of years, illustrating the extreme volatility inherent in the market (Liu & Tsyvinski,
2021). This volatility therefore, poses a substantial risk for both businesses and individuals using
cryptocurrencies for cross-border transactions. For businesses, accepting payments in a highly
volatile currency can lead to significant financial instability, as the value of received payments
can change dramatically between the time of transaction and conversion into fiat currency
(Gandal & Halaburda, 2019). This risk thus, is particularly pronounced in long-term contracts or
delayed settlements, where price fluctuations can erode profit margins or result in substantial
losses. For individuals, especially those relying on remittances, the volatility of cryptocurrencies
can undermine their utility as a stable medium of exchange. The sources such as remittances
have been known to reduce drastically in value due to the changing market rate thus offering
financial support to families that rely on those amount to sustain themselves on a daily basis
(Catalini & Gans, 2020). Such volatility hence, poses a big question mark to the efficacy of
cryptocurrencies as a stable one that will provide people money they spend in their day to day
lives. There has been attempts to limit these fluctuations to include creating stable digital
currencies, which are backed by more stable real assets such as fiat currencies or a commodity.
They are pegged with a specific element – be it another crypto, a country‟s currency, etc. , to
minimize fluctuations in price but while enjoying some characteristics linked to
cryptocurrencies, such as lesser fees and time required for transactions when compared to
traditional cross-border payment systems: (Peterson, 2021). However, it is crucial to understand
emerging challenges related to regulatory and operational frameworks through which stablecoins
function to solve problems, despite their stability. The modest levels of stability characteristic of
the cryptocurrency market hence are an unresolved issue that hinders the broader adoption of
these payment systems. To mitigate this problem therefore, there is the need for new financial
tools, the ability to manage risks effectively, and adequate legal requirements that would
maintain stability but retain the opportunity that is presented by cryptocurrencies. In the future, it
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will be crucial to enhance long-lived and secure cryptographic platforms that would enable
cryptocurrencies to be a part of the financial structures globally (Komalani & Khosravi, 2021).
3.3 Fraud and Scams
Growing fraudulent activity and scams are remains to be a big issue in the cryptocurrency world,
especially when it comes to the cross-border payments. Lastly, while using pseudonyms in the
cryptocurrency transactions has its pros with regards to the privacy of their identities, it also
becomes easy for fraudsters to work in anonymity. This anonymity makes it possible for
different conอาชenes such as Ponzi schemes, phishing scams, and fake ICOs (Garratt & Lee,
2020). Cryptocurrencies are relatively less monitored and more open to manipulation due to their
decentralized nature and unregulated market, which increases the chances of fraudsters going
scot-free and away from the reach of the law enforcement agencies (Blandin et al. , 2020). It is
possible to distinguish several types of deceit that are most commonly used in cryptocurrency
scams, and one of them is phishing, when a hacker tricks a victim into providing him with a
private key or other valuable information. Once the fraudsters infiltrate, they can transfer the
thoughts of the victims into their own pockets, and because of the unalterable characteristics of
the blockchain, it is very difficult to recover all kinds of losses (Narayanan et al. , 2016). Crude
fake ICOs have been employed by some individuals to get money from investors in the hope of
making good returns only for the individuals behind the fake Initial Coin Offerings to vanish
with the cash. These kinds of scam have resulted in lots of lose and have also discouraged
potential investors due to the increased rate of fraudsters (Gouveia, 2021). However, the use of
decentralized finance (DeFi) platforms that provide diverse services to customers without
involving any middlemen as intermediaries has again opened up new ways of deceiving people.
Some of these risks include the hacker attacks with potential smart contract vulnerabilities,
platform exploitation, and exit scams – which in DeFi scenario, users could lose their assets with
no means of getting them back (Peterson, 2021). The nature of decentralised finance applications
at times are complex and new-age which makes it difficult for the user to fully grasp what risks
are involved and as a result; they become susceptible to fraud. Cryptocurrency scammers are
therefore, a cause for concern for the general public, regulatory bodies, and other players in the
industry who are trying their best to fight them. For instance, there is a more elevated legal
scrutiny in the operation of new accounts, commonly referred to as Know Your Customer (KYC)
and Anti Money-Laundering (AML) requirements to raise the understanding of virtual currency
transactions. Further, there are some blockchain analytics firms that offer tools for tracking
fraudulent activities and providing effective ways to detect and minimize illicit schemes (Catalini
& Gans, 2020), these steps are thus, important in establishing the credibility of the blockchain
and encouraging more adoption of digital assets. While cryptocurrencies have many benefits
when used to make cross-border payments, they therefore, carry some risks and issues associated
with fraud and scams. Solving such problems is possible only with the help of various measures
related to the demonstration of activities, the use of technologies, and raising the awareness of
users. Some of these drawbacks may include the following: Through improved security and
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improved transparency, the Crypto currency industry can be taken as evidence to address fraud
risks and promote a safer environment for cross border transactions (Garratt & Lee, 2020).
4. Cryptocurrency Adoption
4.1 Business Adoption
Acceptance of cryptocurrencies in the business sector in recent years, the acceptation of
cryptocurrencies by the business world is steadily growing as a result of the rising necessity of
reliable and cheap payment methods. As the environment in which they work is steadily
changing, businesses are gradually realizing potential advantages of cryptocurrencies to deliver
more efficient and secure services with lower fees and shorter time for transactions processing
(Catalini & Gans, 2020). For example, when conducting international business activities, the
amount and speed of transactions can be significantly limited by the costs of banking services.
With the help of cryptocurrencies these companies can optimize the process of paying for goods
and services across borders and cut down on the overhead expenses thus optimizing the
international trade costs in terms of its efficiency (Frost, 2020). In addition, with the expansion
of the blockchain technology surroundings, the companies receive the possible decision to
develop and implement new strategical models. For instance, decentralized finance (DeFi) is a
novel way of providing financial services, and it is an example of decentered innovation since it
is not offered by conventional financial institutions; rather, it helps businesses attain capital more
efficiently at lower costs (Peterson, 2021). Furthermore, the feature of decentralization in
blockchain can be useful in supply chain management since transparency in the supply chain
leads to the optimisation of the value chain through the provision of real time tracking and
verification of goods through the same platform hence promoting trust among the trading parties
(Garratt & Lee, 2020). Companies are also realizing on smart contracts, which are digital
contracts that automatically execute when certain behavioral states have been achieved. The
application of smart contracts can help avoid or mitigate conflicts of interest by directly
implementing the provisions of a contract without the involvement of third parties (Cong & He,
2019). This means that the firms will be in a position to make serious cuts in their expenses as
well as presence of a smooth operation especially in sectors like; property, indemnify among
others. None the less, the increased use of cryptocurrencies in business has some drawbacks, so
we can outline several challenges for the further expansion of such solutions. In terms of general
challenges, regulatory issues are still a major concern due to the lack of clarity over the legal
requirements regarding the use of AI in different jurisdictions which also continue to change
over time (Blandin et al. , 2020). Finally, kronea operational problem and critical risk include the
unpredictability of cryptocurrency prices that exposes firms to financial risks and thus makes it
difficult for firms to estimate cash outlays (Liu & Tsyvinski, 2021). To avoid such risks, some
companies are using stable coins, which are backed by reliable and stable assets such as fiat
money and have the merits of cryptocurrency but with its volatility removed (Peterson, 2021).
There are a number of compelling strategic benefits of accepting digital currencies in business It
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is thus, important to identify the regulatory and volatility issues as major problems that need to
be solved to open the way for the broader use of cryptocurrencies in business. It is therefore
expected that cryptocurrencies will continue to be adopted by businesses, both what‟s gearing
new innovations and efficienty in a number of sectors given further advancements in regulatory
structures and market solutions like stablecoin (Catalini & Gans, 2020).
4.2 Consumer Adoption
Technological adoption has engulfed the consumer market and as people open up to the degrees
of cryptocurrency, they embrace the probabilities of low costs and hidden details of their
transactions, and quick formulation of complex transactions. Cryptocurrencies are an example of
a distributed financial system that can bypass a number of traditional banking practices and offer
consumers more power in their spending without the need for the middle man (Frost 2020).
Based on the interviews conducted, many consumers, especially those who have never been able
to access financial services in their locality or region, are able to participate in the economic
market of the world through the use of cryptocurrencies (Narayanan et al. , 2016). Another factor
that makes the idea of the consumer adopting cryptocurrencies is the more acceptance of the
cryptocurrency by the merchants and the service providers. Currently, prominent organizations
such as Microsoft Accept Bitcoin & Other Cryptocurrencies As Payment, Overstock, Shopify are
adapting to accepting Bitcoin and other digital currencies for any of their sales or products which
has made it easier for customers to use cryptocurrencies for buying goods and services. Also, the
expansion of multiple cryptocurrencies integration into payment giants like PayPal and Square
have enhanced the conventional user experience through the familiar platforms to purchase, sell
and hold digital currencies (Garratt & Lee, 2020). Another aspect that creates awareness and
leads to the adoption of financial services by the consumer is the rising trends in the
decentralized financial platforms also known as DeFi which present financial solutions without
the use of middlemen. Some consumers deposit money to these platforms, others take loans, lend
their money or exchange assets through these platforms in a cheaper and better returns than
traditional banks (Peterson, 2021). The fact that people can avail these services from any part of
the world and without restrictions is also benefi cial to the cause of financial inclusion and to
allow people to take control of their finances with ease. But before we look at how consumers
engage in cryptocurrencies, let us first consider the some of the challenges. These characteristic
hampers the use of cryptocurrency as a medium of exchange because consumers use their worth
for goods, and this worth may change within a short duration (Liu & Tsyvinski, 2021). Also, the
virtual wallets‟ administration and reflected Blockchain technology might inspire less competent
users‟ negative experiences. To counter these problems, education and humane user interfaces
are important so that consumers can make the right decision on cryptocurrencies (Gouveia,
2021). Other factors that have an influence on consumer uptake are the government regulations
include: Concerns regarding the novel of cryptocurrencies and potential scrutiny from regulatory
authorities are valid concerns that can be a source of concern for consumers (Blandin et al. ,
2020). Lack of proper regulation and guidelines from governments and other body that oversee
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use of these currencies, more efforts need to be made in order to garner more confidence among
the common users. Although the use of cryptocurrencies in consuming processes is growing
rapidly, cumbersome issues such as high volatility, usability and regulation should be solved to
enhance the continuous consumption. Since more terminals are accepting cryptocurrencies and
better interfaces come into play, the buying side should continue to grow conceivable, providing
an alternative to conventional financial systems.
4.3 Government Stance
As for today, governments have taken quite diverse approaches towards cryptocurrencies, based
on the country‟s policies, their attitude to cryptocurrencies as to the financial reality, and general
concerns of stability. So these stances include positive and allowing or negative that exclude the
use of digital currencies and some policy stances consider the risk-reward threat-d opportunity
frame work hence more of Garrat & Lee (2020). It is therefore necessary to take into account
these positions for estimating the subsequent tendencies of cryptocurrencies in the sphere of
cross-border payments, furthermore their penetration into the global financial system. Some
governments have adopted cryptocurrency since it is a tool that has the capability to bring
changes to the community and in the global market. For instance, Japan has put into place a legal
structure that not only allows the operations of cryptocurrency trading platforms but also fosters
their emergence, which has established Japanese economy in the digital currency market
(Blandin et al. , 2020). Likewise, to avoid the negative consequences that can stem from the
decentralization of currency, states have taken measures to encourage blockchain and
cryptocurrency companies to relocate to the Swiss region known as the „Crypto Valley‟. Such
positive attitudes are usually followed by set principles concerning legal requirements on march
and consumers defense, creating equal and suitable conditions for development and new
enactments (Frost, 2020). On the other hand, several governments have also exercised restraint
or prohibition, in areas considered by them to be still sensitive, such as financial security, money
washing, or consumer defense. For instance, China has put restrictions on the use of
cryptocurrencies through policies that prohibited ICO and cryptocurrency exchanges among
others (Gouveia, 2021). The restrictive regulatory approach can thus be attributed to the Chinese
government‟s desire to retain control over China‟s financial architecture and capitulation.
Likewise, India has its shares of volatility in this regard owing to the policy flip-flopping
between the restrictionisms during liberalization and a potential regulated approach as
highlighted by Howell et al. (2020). However, there are many nations that can be considered to
be in the middle between full legalization and an outright ban, struggling to decide on the proper
legislation pertaining to cryptocurrencies and methods of preventing the negative effects of these
innovations, the US regulations are a mixture of federal and state rules and which make the
regulation of these markets a bit complicated. A number of Financial Bodies like the Securities
and Exchange Commission of America SEC& the commodities futures trading commission of
America CFTC have taken an active part in the regulation of the market and specifically some
segments of the crypto market more precisely in protection of investors and market manipulation
Page 13 of 23
prevention as noted by Catalini and Gans in their study. Yet, laws regarding SLPs are not quite
the same among different states, which causes difficulties for business actors and consumers.
Many global organizations like the Financial Action Task Force (FATF) are also considering
making global guidelines for the regulations of cryptocurrencies as they focus on discouraging
crimes while encouraging the right uses of cryptos (Garratt & Lee, 2020). Such measures
therefore, demonstrate the necessity of increasing coordination in the response to the issues
raised by the international character of cryptocurrencies. The attitude of governments can thus,
be far from friendly or rather friendly towards cryptocurrencies, and the impact on legislation
and cross-border cooperation can be significantly affected. Accepting legal policies can help in
the development of the cryptocurrencies industry while the contraries that work against it. While
governments are refining their strategies, it is crucial to navigate carefully between entrenching
more and tighter regulation and promoting new forms of value creation based on permissionless
blockchain infrastructure and decentralized finance (DeFi) (Frost, 2020).
5. Technological Developments
5.1 Blockchain Innovations
The technology behind cryptocurrencies has not been confined to being just a money platform
but it has improved and expanded throughout coming up with new and useful advancements.
Among the key improvements, it is possible to highlight the phenomenon of „the scaling
problem‟ and the emergence of new and more efficient models of blockchain. Traditional forms
of blockchains such as Bitcoin and Ethereum have some limitations among them being
scalability since the basis of the networks is highly restricted thus resulting into high transaction
fees and slow processing time when there is influx of transaction requests (Narayanan et al. ,
2016). In such a way, the consistent introduction of fresh blockchain technological solutions like
sharding, sidechains, as well as layer-2 protocols. For instance, sharding refer to a technique of
dividing a blockchain network into sub-sections known as shards whereby the various shards can
perform processing of transaction without interference from other shards hence enhancing the
throughput of a given network (Zamani et al. , 2018). In Ethereum 2. 0, which is the next big
update of Ethereum network, sharding is brought into the platform to deal with the blockchain
bloat issues and come up with a feasible solution for the use of blockchain in cross-border
payment systems (Buterin, 2020). Further, applications built on layer 2 such as the lightning
network for bitcoin, has enabled micro transactions to be conducted off the parent chain but
recorded on it, thus increasing speed and lowering the cost (Poon & Dryja, 2016). A final major
advancement is the evolution of Consensus mechanisms besides the proof of work (PoW) which
is the original algorithm of bitcoins. PoS and DPoS become more popular as post-halving, more
energy conserving solutions that also provide for the necessary degree of security while requiring
much less computational power (Buterin, 2020). The PoS systems observable in the Cardano and
the impending Ethereum upgrade, tasked the holders of coins to produce new blocks and
authenticate the transactions in accordance to the number of coins they are willing to commit to
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as stakes. This shift not only affects the impact on the environmental factors concerning
blockchain networks but also makes it possible to reduce the cost of operation, hence, walking
towards sustainable network solutions (Narayanan et al. , 2016). Another hot trend area is in the
across-solutions integration, or, to be more specific, interoperability that involves different
networks spread across multiple blockchains. Alprojects such as Polkadot or Cosmos are
working on solutions, which will create compatibility layers for blockchains, enabling the
transfer of value between them. Survival is necessary for any of these blockchains to link to
other frameworks and foster more intricate and extensive purposes for this emerging class of
applications to support actual financial services that can run across the siloed ecosystems (Wood,
2016). All in all, the various innovations befitting the blockchain environment like scalable
protocols thus, consensus mechanisms not based on proof of work, and solutions that enable
integration of various blockchains are some of the key indicators shaping the existing
cryptocurrency world. These advancements help in overcoming drawbacks present in the
previous implementations of blockchain solutions, which has led to cryptocurrencies being more
usable and effective for the international market, especially for the context of international
operations (Narayanan et al. , 2016).
5.2 Smart Contracts
Smart contracts are digital, automated and self-executing software applications that contain the
terms of the agreements in a computer readable form and which are executed on blockchain
platforms. These contracts help in the automating and implementing of solutions once certain
conditions are triggered; no third parties are involved. This innovation has the capacity to
transform concentrated sectors through reliability, visibility, and credibility (Narayanth et al. ,,
2016). Another advantage of smart contracts is that they eliminate intermediaries and centralized
consensus systems through automation. The areas of cross-border operations that can be solved
through smart contracts inclusive of international trade, supply management, and international
settlements. For example, a supplier may be paid for the delivery of goods through a smart
contract that releases payment upon confirmation of delivery, thereby eliminating the necessity
for an extensive verification process, which can be prone to fraud (Szabo, 1997). This
automation not only quickens the velocity at which the transactions can be made but it also
decreases the amount of work that needs to be done and the potential for mistakes to be made
when doing the work. Optimizations in features of blockchain moreover, increase reliability of
smart contracts, including transparency and immutability of the system. Every transaction and
every contractual agreement made takes place on the blockchain, thus honing its ability to show
a portfolio of changes that have been made that can verify the integrity of the records. This
feature is quite helpful and crucial for industries such as real estate, insurance, and financial
services since such businesses can only thrive if there‟s trust and verification (Peterson, 2021).
When integrated with the right features, it helps in minimizing conflict between the users and
also leads to better coordination in attaining the set goals of smart contracts. Ethereum, provide
an environment for a smart contract, integrating decentralized applications (dApps).
Page 15 of 23
Representative programing language is Turing complete and called Solidity; this means that the
developers of the Ethereum platform are able to implement virtually any kind of smart contracts
for different purposes. Ethereum provides all kind of versatilities and functionalities so there are
boost up for novation and create new dApps where smart contract has been used for DeFi,
Digital Identity (Buterin, 2014). Smart contracts thus, have many advantages, but in reality, they
are experiencing several issues essential to be solved for proper use. Contemporary, the actual
enforcement of smart contracts and their legal recognition remain ambiguous in most countries,
which can restrict their application for serious contracts (Garratt & Lee, 2020). Moreover, coding
errors or security flaws that hackers exploit to gain access to and breach a smart contract are also
a nemesis because they have been known to cause major losses especially in decentralized
finance platforms. Smart contracts hence, might help confront such problems and provide more
legal protection that will be important for international trade and probable future financial
systems.
5.3 Interoperability Solutions
Interoperability implementation solutions in block chain technology are thus, geared towards the
promotion of efficient communication between the various block chain systems, as well as
transfer of assets. This capability is quite necessary for the adoption of multiple blockchains for
the execution of various functions as well as cross-border trading and many other fields.
Blockchains and cryptocurrencies are rapidly expanding- which means that asia and solidarism
unity it is crucial that all these platforms can communicate with each other, and are compatible
so as to avoid becoming segmented and separated, thus hindering the development and
progression of decentralized technologies (Garratt & Lee, 2020). A number of efforts are
currently being made towards the realization of the blockchain interoperability architecture and a
few of the most popular projects include Polkadot, created by Gavin Wood, an Ethereum co-
founder. The Polkadot facilitates interconnection and interaction of several blockchains referred
as parachains by providing secure and efficiently interconnected environment for them. Its relay
chain is for consensus and connectivity between the parachains and secures and scales the
interconnected networks with different functionalities as required with the connected original
parachains (Wood, 2016). It makes blockchain systems more synergetic whereby diverse
blockchains link up and utilize the virtues inherent to the different but compatible systems. In a
similar manner, Cosmos is another key player in connection with interoperability. Inter-
Blockchain Communication (IBC) is the communication protocol that enables the various
blockchains within the Cosmos network to move assets and data between each other in what can
be referred to as a frictionless manner. This protocol makes it possible to raise the concept of an
“Internet of Blockchains,” where blockchains are combined yet independent and distinguished,
and effortlessly interlink and transact (Kwon et al. , 2019). Cosmos believes that by creating a
linked Blockchain system, it will go a long way in solving scalability and creating an ecosystem
for innovation on the various networks. These interoperability solutions can therefore, be useful
to facilitate cross-chain transactions between different blockchain platforms, platforms which
Page 16 of 23
often involve different cryptocurrencies. For instance, the a user could easily engage in the swap
of assets across different networks from for instance Ethereum to a network that is better
optimized for transactions at even at a faster Solana network without use of centralized
exchanges. This capability improves the speeds, and the cost of international payments, to
achieve higher levels of effectiveness (Narayanan et al. , 2016). However, the issue of full
interoperability raises a number of concerns remains as follows: When it comes to integrating
disparate networks to achieve scalability and/or accommodate the changing organizational
environment, then there are some technical issues that cannot be overlooked; for instance,
security and the consistency between different networks. Moreover, having the common
understanding of standard frameworks and rules for the unified and effective implementation of
interoperability solutions can become essential (Gouveia, 2021). The realized benefits of
blockchain interoperability thus, require enhancing collaborations between blockchain
developers, industry players, and regulatory agencies to address these challenges. IOTAs are
hence, of paramount importance as a determinant of the future landscape of blockchain
integration to support communication and compatibility between various blockchain systems to
make cross border useful. Platforms like Polkadot and Cosmos are right now leading this
revolution, together solving some core problems and giving a roadmap to a full-grown
integration system of blockchains (Garratt & Lee, 2020).
6. Future Prospects
6.1 Potential Growth
The future of cryptocurreicies in international operations is bright due to rising incorporation of
digital currencies, advancing trends in technology, and changing policies regarding business
operations. For example, cryptocurrencies have the following benefits over the existing payment
systems: lower transaction fees, shorter time of the transaction, increased safety, and more,
which makes them effective for dealing internationally (Frost, 2020). The flow of money in
international transfers which was at 0 billion in 2020 is an enormous untapped market where
cryptocurrency could facilitate and significantly decrease costs in transferring money across
borders (Catalini & Gans, 2020). The fact that traditional financial bodies and corporations are
gradually shifting to recognition of cryptocurrencies as bona fide can be pointed to as one of the
key factors of potential boost. Some of the biggest processors like PayPal, Square and Visa have
implemented cryptocurrency features to facilitate the buying, selling and spending of the latter.
This integration goes on to also confirm the relevance of cryptocurrencies thereby making it
easier and more convenient for consumers and commercial entities (Garratt & Lee, 2020).
Moreover, the increase in institutional investors such as hedge funds and asset managers, there is
an increased inflow of legitimacy in cryptocurrency by which confidence has been boosted, and
adoption encouraged further (Howell et al. , 2020). Other factors, such as development
advancements in blockchain technology itself, affect the possibilities of making cryptocurrencies
more mainstream. Solutions linked to Ethereum 2. 0 and the application of layer-2 protocols are
Page 17 of 23
helping to tackle previous limitations about transaction velocities and costs, making
cryptocurrencies more practical for everyday usage, as well as for large-scale ones (Buterin,
2020). In addition to this, as the decentralized finance (DeFi) platforms that are service providers
without involving third parties such as lending, borrowing, and trading platforms for
cryptocurrencies are increasingly being offered and adopted by users and companies, the buying
areas grow also (Peterson, 2021). Such as, the regulation of these coins is one of the most vital
elements that can influence the overall transition of the crypto industry. As with many sectors it
has been the regulatory environment, which has hitherto limited added capital, that is showing
signs of improving in favour of deployments in at least a few of the affected jurisdictions. In the
same way, the recently proposed Markets in Crypto-assets (MiCA) regulation seeks to establish a
coherent legal structure in the European Union for cryptocurrencies that would protect
innovation while regulating it for consumer protection and to maintain stability in the market
(Gouveia, 2021). Likewise, other countries are researching on Regulatory Sandboxing and Pilot
Schemes as tools to enable the use of Blockchain and cryptocurrencies under controlled
conditions (Blandin et al. , 2020). As for development of using cryptocurrencies for cross-border
transactions, it still has potential, based on expansion of adopting digital currencies, improving
technologies incorporated for digital currencies, and amendments in existing regulations. Thus,
with improvement of infrastructure and legislation, cryptocurrencies can occupy their important
and ever growing place in the world finance as efficient and cost-saving tool for carrying out the
transactions between different countries (Frost, 2020).
6.2 Emerging Trends
The stabilization to the rate of issuance of certain cryptocurrencies, for instance through linked
stablecoins backed by both fiat and real assets. Stable coins are designed to eliminate some of the
drawbacks of cryptocurrencies, with the key being the higher transaction fees and longer
processing time by fixing them to a stable foreign currency or other REs (Catalini & Gans,
2020). This stability makes the stablecoins particularly advantageous for cross-border solutions,
as they eliminate the risks that arise from fluctuation in cryptocurrencies (Peterson, 2021).
Another trend associated with the ongoing development is implementation of cryptocurrencies
into conventional financial frameworks as Central Bank Digital Currencies. Several Global
central authorities inclusive of China, the European union and the United States are currently
trying to introduce their own centralized digital currency to act as a complement or even an
alternative to the physical money (Howell et al. , 2020). CBDCs therefore have the advantage of
cryptocurrencies but bear the safety of Wired money that has the backing and trust of central
banks. There is every indication that a decentralized digital form of fiat money in the form of
CBDCs could greatly enhance the usage of cryptocurrencies in cross-border transactions by
offering a state-backed form of private digital currency in the market (Frost, 2020). The
expansion of decentralized financial applications, or DeFi, it is essential to define that DeFi
essentially is an ecosystem of financial applications for lending, borrowing, or buying/selling
assets directly without the involvement of centralized financial institutions. According to
Page 18 of 23
Narayanan et al. (2016), these platforms rely on smart contracts for enforcing the relevant
transactions, and enhancing the control and transparency of users. Through the current
innovative features offered by DeFi platforms and products, it continued to grow at its current
pace, and its actively expanding and diversifying user base ensures consistent integration of
cryptocurrencies to the global financial system (Peterson, 2021). Interoperability solutions are
hence, emerging as the significant direction in the blockchain and cryptocurrency sector. Some
of the current developments being created include Polkadot and Cosmos which are platforms that
aim to allow multiple blockchains to work on a single network and transfer assets between them.
This interoperability enables multiple blockchain platforms to be connected seamlessly, opening
up more possibilities for these platforms to work in parallel with one another, thereby enabling
cryptocurrencies to be effectively used for cross-border transactions (Garratt & Lee, 2020). It is
therefore, critical to highlight the mounting concern over the regulation and, correspondingly, the
role of regulations as the factor defining the future of cryptocurrencies. Currently, the
governments, and other regulatory institutions, are in the process of developing clear rules and
regulations for creating frameworks for cryptocurrencies that can induce more trust and usability
(Gouveia, 2021). As more nations embrace cryptocurrency and technological developments
advances, new regulations continue to be developed to create favorable conditions for the two
markets, for example, the European Union‟s MiCA regulation and the development of regulatory
sandboxes . Stablecoins, CBDCs, decentralized finance platforms, interoperability solutions, and
the emergence or evolution of more stringent regulations are thus, some of the core trends that
are shaping the efforts of cryptocurrencies and their utility in cross-border payments. These
trends are elongating the institutional characteristics, applications and reconciliation of the digital
currencies as tools of global finance and as a medium of exchange and value transfer which is a
precursor to mainstream adoption and operational efficiency of international trade relations
(Catalini & Gans, 2020).
6.3 Long-Term Implications
Cryptography-based currencies in international transactions for the long-term bearing could thus,
in-depth consequences, especially in revolutionizing the world‟s financial system. Another point
that should be highlighted here is that the use of technologies and platforms has led to
liberalization of financial services. Due to the decentralized system and the characteristics of
block chains, cryptocurrencies have the potential of being an equalizing force in global
economics where everyone would have an equal chance, irrespective of the locations or
economic status (Narayanan et al. , 2016). This might help unbanked and underbanked
communities to be able to do the following: payment, store money, borrow, and participate more
effectively in the economy, and thus improve their standards of living (Frost, 2020). The very
nature of the decentralized system of cryptocurrencies is hence, more significant in terms of
impacts on the financial systems and institutions. Cryptocurrencies can thus, create value and
lower the cost of cross-border transactions than traditional hierarchal systems by doing away
with middlemen. This change may disrupt incumbency of growing financial institutions or
Page 19 of 23
payment networks to advance or transform themselves (Catalini & Gans, 2020). Furthermore, it
is possible to draw new concepts such as decentralized finance (DeFi) to make financial and
monetary opportunities more accessible, thus decreasing the dependency on centralized
institutions and increasing people‟s financial independence (Rcerntine, 2021). The other
potential long-term effects include; the changing face of trade and commerce at the international
level through the use of cryptocurrencies. The nature of cryptocurrencies therefore, to execute
transactions quickly can also improve the ease and cost of international business, through faster
and cheaper to conduct cross-border payments. This efficiency is of as advantage to the
businesses since it can enhance cash flow, and reduce the managerial arrangements of the supply
chain across the world (Garratt and Lee, 2020). Similarly, through the implementation of smart
contracts, trade relations can be executed and regulated assuring the reliability and effectiveness
of international trade (Narayanan et al. , 2016). As pivotal trends that will influence the future of
cryptocurrencies, regulatory changes must be mentioned. These concerns therefore, explain why
clear and supportive regulatory policies have emerged as critical drivers for the development of
cryptocurrencies. However, a lack of consistent or overbearing regulation policies might slow the
expansion of such systems down (Gouveia, 2021). Hence the need to strike a balance between
regulation of these cryptocurrencies in order to control the vices associated with them and the
need to encourage innovative solutions that will enable such cryptocurrencies to achieve their
full potential in bearing cross border transactions. Other features which deserve consideration for
the sustainability of cryptocurrencies include the imprint they leave to the environment. Proof-
of-work mining, as performed by Bitcoin, has been criticized for being very energy-intensive,
thus posing some significant concerns regarding sustainability of cryptocurrencies. Phasing out
oppressive consensus algorithms like the PoW and embracing fairer alternatives such as the PoS
and utilizing renewable energy to power this systems are vital measures that can help address
such concerns as highlighted by Buterin (2020). Moreover, as cryptocurrencies become more
used and main-stream, sustainable practices are going to be needed to maintain the technology‟s
popularity and longevity. Finally, the long-term effects of adoption of cryptocurrencies in
International Business and trade consist of Disintermediation and democratization of the
services, Disruption of the financial systems and changing the face of trade. Based on the current
growth and further development in technology and increasing reforms in the existing laws,
cryptocurrencies are predicted to have deep participation in the world economy and will provide
improved indices than traditional money for international operations (Frost, 2020).
Page 20 of 23
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