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Original Research

EXPLORING THE IMPACT OF CRYPTOCURRENCIES ON SHAPING GLOBAL TRADE AND ECONOMIC DYNAMICS: TRANSITIONING FROM TRADITIONAL TO DIGITAL CURRENCY

SHAKIR SHAUFIT AFFANDI

Vol 19, No 03 ( 2024 )   |  Author Affiliation: International Institute of Applied Science of Swiss School of Management.   |   Licensing: CC 4.0   |   Pg no: 400-414   |   Published on: 15-03-2024

Abstract

This study explores the potential of cryptocurrencies to reshape global commerce and economic interactions. It traces the evolution from traditional fiat currencies to the emergence and growth of cryptocurrencies as digital forms of currency. The research assesses the impact of cryptocurrencies on international trade, focusing on changes in transaction efficiency, cost, and trust in cross-border transactions. It also examines the economic effects of cryptocurrencies on monetary policy, central banking systems, and financial inclusion. The study utilizes primary and secondary data sources, including surveys, interviews, academic literature, reports, and industry publications. Employing statistical methods and qualitative techniques, the data is analysed to derive meaningful insights. The findings highlight both the benefits and challenges of cryptocurrencies in international trade, offering recommendations for policymakers and practitioners. The study contributes to academic understanding by examining the implications of cryptocurrencies for global trade and economic relationships, enhancing theoretical frameworks, and providing guidance for businesses and individuals engaging with cryptocurrencies. Additionally, it identifies patterns and trends, guiding future research directions and addressing potential gaps in the literature. In conclusion, the study emphasizes the significance of cryptocurrencies in transforming international trade and economic relationships, offering insights into economic impact, regulatory considerations, and practical implications, thereby contributing to policymaking and laying a foundation for further exploration in this rapidly evolving field.


Keywords

Cryptocurrencies, International Trade, Economic Relationships, Transformation, Digital Currency, Monetary Policy, Financial Inclusion, Regulatory Frameworks.