Cryptocurrencies and Fintech - Intersecting Dimensions of Digital Currency and Financial Innovation
DOI:
https://doi.org/10.54536/ajfti.v3i1.4522Keywords:
Covid-19 Impact, Cryptocurrencies, Decentralization, FinTech, Market VolatilityAbstract
The convergence of cryptocurrencies and financial technology (FinTech) represents a significant turning point in the global financial system, offering prospects for transformative change since the introduction of Bitcoin in 2009. This study investigates the intersection of these domains by analyzing the impacts, opportunities, and complexities they present. Focusing on major cryptocurrencies—Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP)—the research prioritizes assets with substantial market capitalization, trading volume, and historical significance. The analysis also includes diverse financial markets from Asia, Europe, and Latin America to ensure a comprehensive geographical and economic perspective. Spanning the period from January 1, 2012, to December 31, 2022, the study employs an econometric approach supplemented by decision tree techniques to assess trends, dynamics, and interdependencies between cryptocurrencies and traditional financial markets. Network analysis and risk management methods are utilized to extract insights on portfolio diversification and risk mitigation. The findings highlight both the opportunities and challenges posed by the integration of cryptocurrencies and FinTech, emphasizing their profound implications for the future of finance.
References
Afshan, S., Leong, K. Y., & Others. (2024). Fintech advancements for financial resilience: Analysing exchange rates and digital currencies during oil and financial risk. Resources Policy, 87, 104432. https://doi.org/10.1016/j.resourpol.2023.104432
Alamsyah, A., & Muhammad, I. F. (2024). Unraveling the crypto market: A journey into decentralized finance transaction network. Digital Business, 100074. https://doi.org/10.1016/j.digbus.2024.100074
Allen, F., Gu, X., & Jagtiani, J. (2022). Fintech, cryptocurrencies, and CBDC: Financial structural transformation in China. Journal of International Money and Finance, 102625. https://doi.org/10.1016/j.jimonfin.2022.102625
Albayati, H., Kim, S. K., & Rho, J. J. (2020). Accepting financial transactions using blockchain technology and cryptocurrency: A customer perspective approach. Technology in Society, 63, 101320. https://doi.org/10.1016/j.techsoc.2020.101320
Alsalmi, N., Ullah, S., & Rafique, M. (2023). Accounting for digital currencies. Research in International Business and Finance, 66, 101897. https://doi.org/10.1016/j.ribaf.2023.101897
Asada, T., Zimka, R., Demetrian, M., & Zimková, E. (2023). A mathematical analysis of a MMT type coordinated fiscal and monetary stabilization policy in a dynamic Keynesian model. Journal of Economic Behavior & Organization, 215, 442–454. https://doi.org/10.1016/j.jebo.2023.09.024
Bennett, D., Mekelburg, E., & Williams, T. H. (2023). BeFi meets DeFi: A behavioral finance approach to decentralized finance asset pricing. Research in International Business and Finance, 65, 101939. https://doi.org/10.1016/j.ribaf.2023.101939
Bhambhwani, S. M., & Huang, A. H. (2023). Auditing decentralized finance. The British Accounting Review, 56(2), 101270. https://doi.org/10.1016/j.bar.2023.101270
Bibi, S. (2023). Money in the time of crypto. Research in International Business and Finance, 66, 101964. https://doi.org/10.1016/j.ribaf.2023.101964
Bouri, E., Salisu, A. A., & Gupta, R. (2023). The predictive power of Bitcoin prices for the realized volatility of US stock sector returns. Financial Innovation, 9, 62. https://doi.org/10.1186/s40854-023-00464-8
Corbet, S., Lucey, B., & Others. (2019). Cryptocurrencies as a financial asset: A systematic analysis. International Review of Financial Analysis, 62, 182–199. https://doi.org/10.1016/j.irfa.2018.09.003
Christopher Olk, Colleen Schneider and Jason Hickel. (2023). How to pay for saving the world: Modern Monetary Theory for a degrowth transition. Ecological Economics, 214, 107968. https://doi.org/https://doi.org/10.1016/j.ecolecon.2023.107968
Gowda, N., & Chakravorty, C. (2021). Comparative study on cryptocurrency transaction and banking transaction. Global Transitions Proceedings, 2, 530–534. https://doi.org/10.1016/j.gltp.2021.08.064
Kawaguchi, N. (2019). Application of blockchain to supply chain: Flexible blockchain technology. Procedia Computer Science, 164, 143–148. https://doi.org/10.1016/j.procs.2019.12.166
Puschmann, T., & Huang-Sui, M. (2024). A taxonomy for decentralized finance. International Review of Financial Analysis, 92, 103083. https://doi.org/10.1016/j.irfa.2024.103083
Shah, K., Lathiya, D., & Others. (2023). A systematic review of decentralized finance protocols. International Journal of Intelligent Networks, 4, 171–181. https://doi.org/10.1016/j.ijin.2023.07.002
Shaik, M., Rabbani, M. R., & Others. (2023). The dynamic volatility nexus of FinTech, innovative technology communication, and cryptocurrency indices during the crises period. Journal of Open Innovation: Technology, Market, and Complexity, 9(1), 100129. https://doi.org/10.1016/j.joitmc.2023.100129
SChhina, S., Chadhar, M., Firmin, S., & Tatnall, A. (2024). Navigating blockchain adoption: An examination of actor alignment with the Diffusion of Innovation principles. Blockchain: Research and Applications, 5(4), 100228. https://doi.org/10.1016/j.bcra.2024.100228
Titov, V., & Others. (2021). Cryptocurrency open innovation payment system: Comparative analysis of existing cryptocurrencies. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 102. https://doi.org/10.3390/joitmc7010102
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Jdidi Boussetta
This work is licensed under a Creative Commons Attribution 4.0 International License.
