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Dollarization 2.0 a Cryptocurrency: Impact on Traditional Banks and Fiat Currency

  • Valley View University

Research output: Contribution to journalArticlepeer-review

Abstract

Globalization aided by the internet has now come to stay, which has brought in cryptocurrency to support local and international financial transactions. This qualitative study used content analysis research techniques to assess the impact of cryptocurrency on traditional banking and fiat currency. The findings of this study were, firstly cryptocurrency has similar features and function of banks and fiat currency, as it operates through the internet. Secondly, cryptocurrency functions as a unit of account, medium of exchange, store of value and an intermediary on fund accumulation and distribution. Thirdly, cryptocurrency which is dollarization 2.0 has come to restore the confidence and convenience of financial globalization in that it eliminates the third party from interfering with the transactional process. Lastly, its influence on central banks and governments is the elimination of seigniorage. What cryptocurrency requires now is the legal tender status through regulations.
Original languageAmerican English
Pages (from-to)341-349
JournalInternational Journal of Academic Research in Business and Social Sciences
Volume8
Issue number6
DOIs
StatePublished - Jun 26 2018
Externally publishedYes

Keywords

  • Currency
  • Cryptocurrency
  • Dollarization
  • Dollarization 2.0

Disciplines

  • Finance and Financial Management

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