Description
The Impact of Digital Currencies on Traditional Financial Systems: A Mixed-Methods Study
Abstract
Traditional financial institutions are being drastically altering by emergence of digital and remarkably cryptocurrencies along with the central bank Digital currencies (CBDCs). Both opportunities and threats are presenting by these new money types, which put traditional banking institutions as well as payment methods, and regulatory frameworks to the test. The rapid uptake of it is exploding discussions among institutions along with legislators, and financial authorities. This core study particularly focusing on effects of digital currencies with examples of cryptocurrency and CBDCs on the conventional financial system.
Notably, the research study utilizes a mixed-methods approach, and the two different lenses used offer diverse yet robust methodologies. To enumerate how financial market data, such as exchange rates and also transaction volumes. Similarly, qualitative research is being conducted via interviews with bankers. And also cryptocurrency specialists, and financial regulators to recognize their opinions about digital currencies. In addition, these techniques enabling a complete exploration of the ways in which electronic currencies are converting the financial landscape.
The paper signifying that the dynamic appears to be a complicated one between the traditional financial institutions as well as the digital money. However, digital money which holds the potential of greater inclusiveness and efficiency but also throw existing financial systems on their head. Their rapid acceptance, however, poses intense regulatory encounters. Because lawmakers and financial associations struggle to keep up with innovative technological developments. Digital currencies make it more challenging to control the monetary policy by raising market volatility. The study which describing the wide span of consequences for existing financial systems. And also the disruptive potential of it. As the phenomenon of digital currencies grows, the functions of financial institutions and authorities needs to familiarize. To realize the potential assistance posed by digital currency, policymakers must undertake the regulatory disputes they pose.
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Impact of Digital Currencies on Traditional Banking Systems and Financial Stability
Impact of Digital Currencies on Traditional Banking Systems
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