Cryptocurrencies & Disruption of the International Financial System

This report examines the potential of cryptocurrencies, particularly Bitcoin, to disrupt the international financial system. It explores the perceived advantages and disadvantages of cryptocurrencies as an electronic mode of payment and analyzes their future potential to cause disruptions in the international financial system. The research employs a secondary research methodology, utilizing descriptive analysis and thematic analysis to interpret qualitative data from various sources, including books, journals, and articles. Ethical considerations are addressed to ensure data confidentiality and authenticity. The study highlights the impact of blockchain technology, the decentralization of business transactions, and the potential for cryptocurrencies to challenge the dollar standard and simplify crowdfunding, while also acknowledging concerns related to money laundering and illicit activities. The report concludes by emphasizing the role of cryptocurrencies in reshaping global finance.

Running head: CRYPTOCURRENCIES AND DISRUPTION OF INTERNATIONAL
FINANCIAL SYSTEM
Cryptocurrencies and Their Potential Use in Disruption of International Financial System
University Name
Student Name
Authors’ Note

2CRYPTOCURRENCIES AND DISRUPTION OF INTERNATIONAL FINANCIAL
SYSTEM
Introduction
The current study has the intention to examine cryptocurrencies and the way
cryptocurrencies can prove to be potentially disruptive in the area International Financial
System. However, due to considerable importance, the study at hand concentrates on
specifically Bitcoin, the way the same transfer value and manner in which markets of
different categories get disrupted. The study at hand aims to throw light on adoption of
advanced technologies, innovative products developed out of the same (referring to digital
assets otherwise cryptocurrencies and similar methods of value exchange. Essentially, this
study concentrates on the way these mechanisms are functioning towards dramatically
altering the way transactions are undertaken in everyday life and thereby adversely affecting
the entire financial system.
Context of the research
Cryptocurrency that refers to a new generation of internet based currencies have
developed in popularity over the past few years. Cryptocurrencies such as Bitcoin, Litecoin
and many others can be said to be encrypted currencies in digital form. A specific
characteristic of these specific currencies is that they are essentially decentralised while
majority of conventional currencies are mainly controlled by a particular centralized
government 1 .
In particular, digital currencies are essentially generated and at the same time
transacted in open source surroundings in which they are essentially controlled and
supervised by different codes and depend on specific peer-to-peer networks2.
1 W BUCHANAN, CRYPTOCURRENCY AND BLOCKCHAINS, in , DULLES, STYLUS PUBLISHING, 2018.
2 L Cocco, G Concas & M Marchesi, "Using an artificial financial market for studying a cryptocurrency
market", in Journal of Economic Interaction and Coordination, vol. 12, 2015, 345-365.

3CRYPTOCURRENCIES AND DISRUPTION OF INTERNATIONAL FINANCIAL
SYSTEM
Cryptocurrencies such as bitcoin have generated a novel market where, unlike the present
financial system. No single business enterprise has entire control.
Bitcoin, Ethereum and Litecoin among many others keep on experiencing massive
rate of growth in terms of price, capitalization in market and mainstream implementation.
Cryptocurrencies are presenting features as well as functions that are altering. Essentially,
cryptocurrencies are necessarily challenging specific dollar standard, eradicating middleman
and simplifying the entire process of crowdfunding process3. The middle men present in the
process of payment processing, cryptocurrencies are generating a huge disruption to the
entire worldwide payment mechanism. It can be hereby mentioned that one of the primary
reasons for centralised payment processing protocol is to prevent financing for money
laundering, terrorist actions, and illicit trade in essentially drugs as well as ammunitions4.
With cryptocurrencies, this becomes much harder to outline business transactions and
determine specific identities of different participants. Impact of block chain technology
asserts cryptocurrencies and cryptocurrencies present a host of different advantages5.
A number of cryptocurrencies along with block chain technologies also disrupt
finances of the economy by affecting speedy movement of money (instantaneous movement),
secured system of disbursement, low amount of taxes and fees, presentation of detailed
records and inadequate rate of exchange6. Therefore, this study intends to examine the effect
of cryptocurrencies and their potential usage in disruption of International Financial System
Primary Aim of the study
3 L Cocco, G Concas & M Marchesi, "Using an artificial financial market for studying a cryptocurrency
market", in Journal of Economic Interaction and Coordination, vol. 12, 2015, 345-365.
4 J Fry & E Cheah, "Negative bubbles and shocks in cryptocurrency markets", in International Review of
Financial Analysis, vol. 47, 2016, 343-352.
5 D Lyubshina, "Cryptocurrency as an innovative tool of world trade", in Interactive science, , 2016.
6 J Maupin, The G20 countries should engage with blockchain technologies to build an inclusive, transparent,
and accountable digital economy for all, in .

4CRYPTOCURRENCIES AND DISRUPTION OF INTERNATIONAL FINANCIAL
SYSTEM
The primary aim of the study at hand is to analyse benefits as well as disadvantages of
cryptocurrencies as a particular mode of payment. Also, this study at hand also has the
intention to analytically evaluate potential of the cryptocurrency in interruption and
interference of the entire International Financial System.
Objective of the study
Primary objectives of the firm include the following:-
- To comprehend Perceived advantages and disadvantages of cryptocurrency as a specific
form of electronic mode of payment
- To analyse in detail future potential of cryptocurrency as a definite mode of currency in
causing disruptions for International Financial System
Research Question
- What are the potential advantages as well as disadvantages of cryptocurrency as a particular
form of electronic mode of payment?
-What is the future potential of cryptocurrency as a particular mode of currency in creating
disruptions for essentially International Financial System?
Review of Literature
From the standpoint of technical aspects, it can be hereby stated that cryptocurrency
can be illustrated as a specific kind of digital currency that depends on cryptocurrency,
normally proof-of-work plan7. This is expected to generate and handle the currency. In
essence, a decentralised network of definite nodes of peer to peer operations generates and
substantiates business transactions of specific currency within this network.
7 A Narayanan et al., Bitcoin and cryptocurrency technologies, in .

5CRYPTOCURRENCIES AND DISRUPTION OF INTERNATIONAL FINANCIAL
SYSTEM
Block chain technology is considered as the core technology operative behind
cryptocurrency is unquestionably is a major disruptor of the worldwide business procedure.
Nevertheless, it appears that greater amount of attention is paid to cryptocurrencies in place
of block chain technology8.
There are several entrepreneurs who have arrived at the decision to generate
campaigns on ICO and sell tokens to the entire public and raise millions of dollars.
Emergence of Bitcoin led to decentralization of business transactions on an enormous scale.
The decentralized exchanges do not possess recourse whatever to the US dollar. Essentially,
this alters the overall dynamics of worldwide trade, foreign associations, diplomacy and the
influence of economic approvals9. There were also attempts to de-dollarize the worldwide
economy and cryptocurrencies appear to be a veritable way of attaining that specific
objective.
Mechanisms of Methodology
The researcher intends to adopt secondary research on the subject matter under
consideration. The learner has the intention to undertake descriptive approach of research
since it implements secondary data and carries out detailed analysis of previously known
facts/figures. Implementation of descriptive research study essentially can aid the process of
undertaking illustrative scrutiny of formerly gathered facts and subsequently drawing
inferences by means of thematic analysis10.
8 A Narayanan et al., Bitcoin and cryptocurrency technologies, in .
9 P Vigna, Cryptocurrency, in , Random House UK, 2016.
10 A Narayanan et al., Bitcoin and cryptocurrency technologies, in .

6CRYPTOCURRENCIES AND DISRUPTION OF INTERNATIONAL FINANCIAL
SYSTEM
Analysis/Interpretation of data
There are varied kinds of structured texts (namely, survey outcomes, books, journals,
articles and many others) that are amassed as qualitative secondary data. The learner intends
to undertake qualitative data analysis since the range of processes that can aid in moving
qualitative data acquired into specific form of explanation, comprehension and analysis of
circumstances. The learner intends to analyse the amassed data for the study using qualitative
mechanisms namely, content analysis and thematic analysis and many others11. In this regard,
it can be hereby mentioned that the learner intends to use “analysis of case study” approach,
thematic analysis and analysis of previous academic literature for analysis of acquired
qualitative data.
Ethical Consideration
For the purpose of undertaking the current research, the learner has made cautious
attempt in presenting confirmation concerning conformation with varied rules and guidelines.
In addition to this, there is necessity to validate that there is proper safeguarding of
confidentiality of definite data amassed for undertaking the research. Also, they must not be
sharing information that is vital and confidential data12. Again, information accumulated need
to be authentic or else the ending result might possibly get affected in an objectionable
manner. Further, it is the liability of the learner to warrant that emotions of people involved
are not hurt during the research. Additionally, secondary and qualitative data can be deduced
from a variety of updated along with reliable sources, so that there is no presence of
inconsistency. The current study illustrates cryptocurrency and its role in disruption of
worldwide International Financial System.
11 A Narayanan et al., Bitcoin and cryptocurrency technologies, in .
12 J Maupin, The G20 countries should engage with blockchain technologies to build an inclusive, transparent,
and accountable digital economy for all, in .

7CRYPTOCURRENCIES AND DISRUPTION OF INTERNATIONAL FINANCIAL
SYSTEM
References
BUCHANAN, W, CRYPTOCURRENCY AND BLOCKCHAINS. in , DULLES, STYLUS
PUBLISHING, 2018.
Cocco, L, G Concas, & M Marchesi, "Using an artificial financial market for studying a
cryptocurrency market.". in Journal of Economic Interaction and Coordination, 12, 2015,
345-365.
Fry, J, & E Cheah, "Negative bubbles and shocks in cryptocurrency markets.".
in International Review of Financial Analysis, 47, 2016, 343-352.
Lyubshina, D, "Cryptocurrency as an innovative tool of world trade.". in Interactive science, ,
2016.
Maupin, J, The G20 countries should engage with blockchain technologies to build an
inclusive, transparent, and accountable digital economy for all. in .
Moffett, M, A Stonehill, & D Eiteman, Fundamentals of multinational finance. in .
Narayanan, A, J Bonneau, E Felten, A Miller, S Goldfeder, & J Clark, Bitcoin and
cryptocurrency technologies. in .
Vigna, P, Cryptocurrency. in , Random House UK, 2016.