Research Proposal: How Cryptocurrency is Impacting the World Introduction

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While economic progress has benefited many nations, it has not been adequately distributed among the world’s regions and nations, according to a recent report released by the World Bank. Developing countries are plagued by civil war, administration collapse, and economic turmoil (Alharbi & Sohaib, 2021). At the same time, economic problems such as restricted access to financial services and rising inflation rates are significant drivers of poverty. Furthermore, research has shown that a lack of confidence in government institutions and corruption impede economic growth (Shovkhalov & Idrisov, 2021). Currencies like Bitcoin, Litecoin, and Ethereum may assist in alleviating poverty in developing nations by enabling improved traceability of money and expanding access to financial services. They can be regarded as a medium to promote the development process in these countries.

Globalization and digitization have been more intertwined in recent years. Our cellphones allow us to communicate with anybody, anywhere, anytime. Instantaneous peer-to-peer sharing of information and services takes place over the Internet every day. Goods from all around the globe are being exchanged (Jacobs, 2018). A dominating global reserve currency attached to a single nation seems out of place in an interconnected world. Change is inevitable. Theses on the possibility of cryptocurrencies becoming a worldwide currency examine the advantages and dangers that may come with its widespread use.

Multiple nations asked for changes to the international monetary system after the financial crisis of 2008. The ideal objective of reconstructing the international economic system is to develop a global reserve currency independent of individual governments. Another option for managing international liquidity is to use the Special Drawing Rights (SDRs) or a brand-new currency, including the Bancor1. The U.S. dollar has problems as a dominating world reserve currency. 

The nature of money has evolved dramatically throughout time. Coinage of precious metals was among money’s first developments. As the precious metals were uniformly and designated on the coinage, it was easier for the public to understand the worth of each coin (Sharma et al., 2020). Several nations throughout the globe quickly adopted this new technology.

On the other hand, Coined precious metals were prohibitively costly when they had to be transported by ship and port throughout the globe. As a result, paper money was developed, making it easier to carry everywhere. Carrying coins was inconvenient and costly; thus, using paper money eliminated those issues.

Theoretical Framework

The Technology Acceptance Model (TAM) was established to forecast the adoption of information technology in the workplace. According to this concept, the attitudes of prospective technology users are influenced by perceived utility (U) and ease of use (E). It is termed the degree to which individuals feel that utilizing a particular system would boost their work performance. At the same time, it is framed as the extent to which the individual considers that employing a specific system would be free of mental and physical effort (Alharbi & Sohaib, 2021). 

According to TAM, these two qualities influence the user’s attitude towards the computer system. It indicates that the larger the user’s favorable feeling about the system’s perceived ease of use and perceived utility, the greater the likelihood that the system will be used. Although TAM focuses on the effect of external circumstances on a behavioral notion, it provides a fundamental foundation. To apply this model to a new firm or a new culture, most researchers required extra external variables that covered diverse sectors. Consequently, there have been many revisions and enhancements to TAM since its original conception, steadily strengthening the model’s ability to explain the adoption and usage of technologies in an organizational environment. 

Represented as a regression model:

f(t) = SJ + DJ + DJ-1 + … + 

Dj + … + D1

Here, the proposed predictive analytics perform decomposition levels to provide one approximation and a linear component. As f(x) accounts for the decision boundary, the goal entails estimating parameters that cause the most deviation from the target. 

Methodology

It is necessary to evaluate existing technology and organization-related literature to determine the most critical issues relating to blockchain technology before developing a conceptual framework. Organizations need to assess a wide range of variables before using this revolutionary technology, and this assessment raises concerns about how best to do so. This study will thus classify these variables according to the institutional framework into the institutional, market, and technological variables. This approach is vital in light of the technical component, the number of parties engaged, and the influence of markets (Shovkhalov & Idrisov, 2021). 

Disruptive is an understatement for the disruptive nature of blockchain technology. Since their study gives an appropriate reference point for mapping critical technological, institutional, and market issues, Koppenjan and Groenewegen (2005) More than 800 databases, including Business Source Complete, Scopus, Web of Science, and Google Scholar, return more than a simple search for the terms “blockchain” and “adoption.” According to a quick check of each of the 800 abstracts, just 31 presentations will concentrate on cryptocurrency adoption as a target. All 31 of these publications will be reviewed to identify any significant factors. The goal of this study is to uncover meaningful and in-line variables.

Conclusion

The global payment system might be revolutionized by eliminating the intermediaries now required for international transactions and settlements. Smaller banks, businesses, and consumers will benefit from a seamless global payment system and real-time communications and settlement of transactions. If new competitors’ entrance barriers decrease, current international payments intermediaries may be compelled to modify their internal structure or become altogether obsolete.

References

Alharbi, A., & Sohaib, O. (2021). Technology readiness and cryptocurrency adoption: PLS-SEM and deep learning neural network analysis. IEEE Access9, 21388-21394. https://ieeexplore.ieee.org/abstract/document/9343266/

Iqbal, N., Fareed, Z., Wan, G., & Shahzad, F. (2021). Asymmetric nexus between COVID-19 outbreak in the world and cryptocurrency market. International Review of Financial Analysis73, 101613. https://www.sciencedirect.com/science/article/pii/S1057521920302568?casa_token=jS_KpkwDtz8AAAAA:4xmmtforenG7Uin9Llb1A34uF3ERqAMfYudaSkaOtqz0FFJoVhk3CQiSN8F0pj-R-GZ2qBXV

Jacobs, G. (2018). Cryptocurrencies & the challenge of global governance. Cadmus3(4), 109-123. https://www.cadmusjournal.org/files/pdfreprints/vol3issue4/Cryptocurrencies-and-the-Challenge-of-Global-Governance-GJacobs-Cadmus-V3-I4-Reprint.pdf

Sharma, S. K., Modanval, R. K., Gayathri, N., Kumar, S. R., & Ramesh, C. (2020). Impact of application of big data on cryptocurrency. Cryptocurrencies and Blockchain Technology Applications, 181-195. https://onlinelibrary.wiley.com/doi/abs/10.1002/9781119621201.ch10

Shovkhalov, S., & Idrisov, H. (2021). Economic and legal analysis of cryptocurrency: scientific views from Russia and the Muslim world. Laws10(2), 32. https://www.mdpi.com/2075-471X/10/2/32