Cryptocurrency in the UK: A Comprehensive Analysis of Societal Impact

This report examines the potential impact of cryptocurrencies on society within the United Kingdom, focusing on economic and social dimensions. It explores how cryptocurrency projects can contribute to a more equitable society, analyzes the potential undermining of banks' roles by crypto assets, and investigates the likelihood of cryptocurrencies becoming a popular payment option in England. The research utilizes secondary data to address these questions, reviewing existing literature on the benefits and drawbacks of cryptocurrency adoption. Findings indicate that while cryptocurrencies offer opportunities for financial inclusion and global market access, challenges such as regulatory uncertainty and security risks persist. The report also discusses the role of banks in the evolving crypto landscape and the potential for central bank digital currencies (CBDCs) to reshape the financial system. It concludes with recommendations for policymakers and stakeholders to mitigate risks and harness the benefits of cryptocurrencies while ensuring consumer protection and financial stability. Desklib provides access to similar solved assignments and research papers for students.

Research Project

Abstract
Crypto currencies are virtual assets designed for use as a method of change that use
cryptographic strategies to verify and analyse transactions. To hold transaction history,
maximum crypto currencies use a dispensed decentralized ledger. Crypto currency is saved in
virtual wallets. Crypto currency acquired its name as it makes use of encryption to affirm
transactions. Transactions are fast, virtual, at ease and global, which in essence permit the
upkeep of statistics without chance of data being pirated. Additionally,there is not any such
issue as a crucial corporation in rate of a selected currency; alternatively, it is the network,
and in maximum cases, the so-known as "miners," who oversee storing and processing the
decentralised statistics primarily based on block chain technology. In addition to this, there
are different research approaches as well as techniques that can be used for completing the
research in an effective manner. Research method is the unique methods or strategies used to
identify, pick out, procedure, and examine information approximately a subject. In a studies
paper, the technique phase permits the reader to critically evaluate a have a look at ordinary
validity and reliability. In the respective research, the researcher has used secondary sources
of data in order to gather appropriate data.

Contents
Abstract................................................................................................................................................2
Topic: Cryptocurrency in UK: The potential impact of Cryptocurrencies on society..................4
INTRODUCTION...............................................................................................................................4
Background of research.....................................................................................................................4
Research Aim....................................................................................................................................5
Research Objectives..........................................................................................................................5
Research Questions...........................................................................................................................5
Literature Review................................................................................................................................5
How can the projects behind the cryptocurrency benefit to build a more equal society.....................5
Will the growth of cryptocurrencies and crypto assets in general undermine banks'role and
influence in the UK economy?..........................................................................................................7
Cryptocurrencies are becoming more popular as a means of assumption. But do the people of Engla
nd believe it will become a popular payment option in the next three years?....................................8
Methodology........................................................................................................................................9
Data Analysis.....................................................................................................................................11
Theme 1: Projects behind the crypto currency benefit to build a more equal society......................11
Theme 2: Growth of crypto currencies and crypto assets in general undermine banks' role and
influence in the UK economy..........................................................................................................12
Theme 3: Crypto currencies are becoming more popular as a means of assumption. But do the
people of England believe it will become a popular payment option in the next three years...........14
Discussion of findings........................................................................................................................14
Conclusion and Recommendations..................................................................................................17
Limitations and Future Research.....................................................................................................19
REFERENCES..................................................................................................................................20

Topic: Cryptocurrency in UK: The potential impact of Cryptocurrencies
on society.
INTRODUCTION
Cryptocurrency is a virtual price machine that doesn't depend upon banks to affirm
transactions(Akar and Akar, 2020). Cryptocurrency, sometimes known as crypto-currency or
crypto, is any form of currency that exists digitally or certainly and makes use of
cryptography to at ease transactions. Cryptocurrencies do not have a relevant issuing or
regulating authority, instead the usage of a decentralized gadget to report transactions and
issue new devices.The crypto forex and behind it abuilt-in generation that is the blockchain
era has both bad and fantastic outcomes but for the reason that negatives outweigh the
effective the authorities wish the walk the rope carefully(Stolarski, Lewoniewski and
Abramowicz, 2020). The monetary disaster that the sector confronted become pan global as
its ripples have been felt almost anywhere whether or not be the Great Economic Depression,
2008 crisis as a result cryptocurrency and its poor facet effects will to be pan global society,
as a consequence man or woman countries at the side of the multilateral global should are
available in collectively to do away with the negative outcomes of the crypto foreign money
and utilization of the blockchain technology nicely. But it ought to be held proper that the
conventional sovereign money economic system can’t get replaced as an entire. The
respective research will explain How can the projects behind the cryptocurrency benefit to
build a more equal society and the impact of Cryptocurrencies on society.
Background of research
Cryptocurrencies are virtual assets designed for use as a method of change that use
cryptographic strategies to verify and analyse transactions. To hold transaction history,
maximum cryptocurrencies use a dispensed decentralized ledger(Fadeyi and et.al., 2020). In
easy phrases, blockchain generation is the concatenation of blocks of statistics transactions
within the case of cryptocurrencies – using positive hashing algorithms that use the hash
values of previous blocks.
Research Aim
“To analyse the impact of Cryptocurrencies on society in the United Kingdom.”

Research Objectives
 To identify theprojects behind the cryptocurrency benefit to build a more equal
society.
 To analyse if
the growth of cryptocurrencies and crypto assets in general undermine banks'role and
influence in the UK economy.
 To analyse if
people of England believe it will become a popular payment option in the next three y
ears.
Research Questions
 How can the projects behind the cryptocurrency benefit to build a more equal society?
 Will the growth of cryptocurrencies and crypto assets in general undermine banks'role
and influence in the UK economy?
 Cryptocurrencies are becoming more popular as a means of assumption. But do the people
of England believe it will become a popular payment option in the next three years?
Literature Review
Literature review is regarded as the vital area which has to be described that would in
future aids in evaluating the appropriate guidance by aids of effective data. In addition to this,
it is also undertaken as the efficient portion of study which could assists in conducting deep
investigation by that end conclusion might be attained. Additionally, it is useful to determine
the impact of crypto currency on society within United Kingdom. For this, some aspects are
answered through assistance of journals, books, websites and others.
How can the projects behind the cryptocurrency benefit to build a more equal society
Cryptocurrency affords many incentives for marketers throughout the globe. It has
made it simpler for entrepreneurs to attain global markets in place of strictly sticking to the
countrywide markets. This has allowed sellers to create relationships and foster trusts with
markets by no means before to be had and has been great for developing nations. This new
shape of foreign money still has negative aspects that have avoided it from taking that
subsequent step(Forcadell, Aracil and Úbeda, 2020). One of the most important issues with
on-line currency is the failure to defend buyers. Because the web sites are towards the usage
of a third celebration to delegate transactions, some buyers are left scammed.

There is already a whole industry built round cryptocurrencies and it’s held by using
institutions committed to supervising all of the virtual coin exchanges taking place all
through the arena. The rate at which the cryptocurrency enterprise is developing is earth-
shattering and this can be confirmed with the aid of early adopters that became wealthy
overnight and located possibilities to develop financially. Bitcoin, the most well-known of
those cryptocurrencies, has already accepted many people and groups to develop and flourish,
while many also rely upon buying and selling as their supply of income. The economy is
slowly transferring to evolve to these wishes and cryptocurrencies have a super potential in
enjoyable them.
There is already an entire industry constructed around cryptocurrencies and it’s held with the
aid of institutions devoted to supervising all of the virtual coin exchanges taking place at
some point of the arena. The price at which the cryptocurrency industry is developing is
earth-shattering and this will be confirmed through early adopters that became rich overnight
and observed possibilities to develop financially(Garg and Tiwari, 2021). Bitcoin, the
maximum famous of those cryptocurrencies, has already permitted many humans and
organizations to broaden and flourish, even as many additionally rely on buying and selling
as their supply of income. The economic system is slowly moving to evolve to these wishes
and cryptocurrencies have a outstanding capacity in pleasing them.
There at the moment are many apps and applications that facilitate the use of
cryptocurrencies and bring them in the direction of the wider audience. A delivered
advantage of cryptocurrency use is that it’s completely decentralized, so trading can be
completed freely throughout borders. The use of technology will facilitate a monetary
revolution in an effort to go away absolutely everyone greater financially related, empowered
and enabled. Because cryptocurrencies and blockchain don’t want an real brick-and-mortar
building to exist, the expenses related to their transactioning are minimal(Goodkind, Jones
and Berrens, 2020).
Will the growth of cryptocurrencies and crypto assets in general undermine banks'role and
influence in the UK economy?
Banks can without a doubt play a full-size position within the crypto enterprise,
including a few lots wanted warranty and safety to the largely unregulated surroundings.
Adopting cryptocurrencies and blockchain era general can streamline approaches and take
banking into the following technology of efficiency and innovation. These people that during

maximum cases are already financially disadvantaged normally motel to dubious and
dangerous lending practices. The price of those practices is some thing but fair, which
therefore leads to extra instability many of the people who asked the mortgage.
Banks can certainly play a tremendous function in the crypto industry, adding some plenty
wished warranty and security to the in large part unregulated surroundings(Gryszczyńska,
2021). Adopting cryptocurrencies and blockchain era typical can streamline strategies and
take banking into the next era of efficiency and innovation. While decentralized financial
networks could threaten banks' lengthy-term viability, the immediately threat posed by means
of bitcoin and its friends is negligible.
The era used to control those transactions is referred to as Blockchain. This technology has
been around for some time and is used for lots different purposes, which include updating
healthcare statistics. The UK authorities is even making an investment in blockchain to
record and administer pension and gain bills.Cryptocurrencies have a huge amount of ability,
in particular on the subject of offering accessible options for allowing people across the world
to trade cash.Currently, using cryptocurrency is still an emerging fashion with a constrained
number of groups accepting it as a price method(JeribiandFakhfekh, 2021). There is not any
need for employee wages, application bills or rent to be paid, so these savings clearly morph
into low transaction expenses. There’s never been a more rich time to do commercial
enterprise than it's miles now, within the experience that blockchain generation and
cryptocurrencies can help entrepreneurs acquire payments in more currencies.
Cryptocurrencies are becoming more popular as a means of assumption. But do the people of
England believe it will become a popular payment option in the next three years?
There are different types of cryptocurrencies that operate within the market and it is
being estimated that these will become an essential part of the financial system. Hence, it can
be stated that it is important to make crypto currencies a part of payment options because it
can help in enhancing the way in which transactions are done(Kethineni and Cao, 2020). The
U.K. Government hasn’t yet decided whether or not to introduce a digital model of the
British pound, but said it'd explore the objectives, use instances, possibilities and dangers
involved if it were to continue. The Bank of England will also set up a unit inside the group
devoted to exploring a valuable financial institution virtual forex.
A Central Bank Digital Currency (CBDC) might permit families and businesses to
without delay make digital payments the usage of cash issued by using the Bank of England.

Any CBDC could be brought alongside in place of changing cash and bank deposits. Another
factor using valuable banks’ work on CBDCs is personal stablecoin initiatives consisting of
the Facebook-subsidized Diem Association and a controversial token known as tether(Lipton
and Treccani, 2021). Such currencies try to peg their marketplace cost to some external
reference, such as the U.S. Dollar, to avoid unstable charge swings which might be
commonplace in maximum cryptocurrencies. China appears to be charging ahead of different
predominant nations on CBDCs.Cryptocurrency owners within the United Kingdom (UK)
and likely combined this with other coins. In that experience, it is possibly incredibly
unsurprising to look Bitcoin, Ethereum and Dogecoin 3 cryptocurrencies that hit the
information frequently in 2021 on top of this list. This is the identical top three as whilst as
compared to the possession of 14 unique cryptocurrencies inside the United States. Women
tend to be more hazard averse on the subject of making an investment, however that can be to
their advantage, as research have determined that women traders outperform their male
counterparts. A loss of self assurance in cryptocurrencies, probably due to an overreliance on
understanding(Medvedovskyi, 2020).Analysts estimate that the global cryptocurrency
marketplace will greater than triple with the aid of 2030, hitting a valuation of almost $five
billion. A Central Bank Digital Currency (CBDC) would permit households and corporations
to at once make electronic payments the usage of money issued by means of the Bank of
England. Any CBDC might be delivered along rather than changing cash and bank deposits.
Methodology
Methodology is regarded as the vital study prospects as it helps individuals by
providing them an appropriate understanding of the different methods that have been used
through investigators in order for accomplishing the study into an effectual way (Mikhaylova
and et.al., 2021). There are different research approaches and ways which can be utilised for
accomplishing the investigation effectively. Research method is innovative methods and
tactics utilised for identify, select out, methods as well as examine information about subject.
Within studies, technique stages permits individuals for successfully assess have a seek at
ordinary strength as well as dependability. In particular study, researcher has used secondary
sources of data in order to gather appropriate data.
Qualitative Research – It is a type of research approach wherein the researcher gathers data
which is non-numerical. This helps the researcher in understanding the concepts, experiences,
opinions as well as viewpoints of the respondents effectually. There are several qualitative

research approaches which can being utilised to accomplish the study appropriately. Also,
there are various benefits of qualitative research because it ensures that the researcher is able
to gather appropriate non-numerical data from the respondents. The different benefits include
that the researcher is able to develop a better understanding about the topic through the
viewpoint of the respondents. The qualitative research process makes use of a smaller pattern
length than other research strategies (Ntasis, Koronios and Pappas, 2021). It is so to real than
other records is accumulated from all respondents. Moreover, the small size sample is equal
to low study costs. It is not simpe do particular investigation kept cost, but this become
competent to develops fast outcomes. In case data is gathered quickly for crucial decision
which is one of initial study alternatives which is available those periods.
Quantitative Research -Quantitative studies requires cautious experimental design
and the potential for everybody to copy both the test and the consequences. This makes the
records you acquire more reliable and less open to argument. When you acquire quantitative
records, the form of outcomes will inform you which of them statistical checks are
appropriate to apply. As an end result, interpreting the facts and presenting those findings is
straightforward and much less open to error and subjectivity (Sebastião, CunhaandGodinho,
2021). Research that entails complex information and facts analysis is taken into
consideration valuable and incredible due to the fact many humans do not recognize the
mathematics concerned. Quantitative research is associated with technical improvements like
laptop modelling, inventory selection, portfolio evaluation, and other information-primarily
based commercial enterprise choices. The association of prestige and fee with quantitative
studies can mirror nicely to the small enterprise.
Research Strategy -Research strategy enables a researcher pick the right information
collection and the analysis system. Thus, it's far of maximum significance to choose the
proper approach while accomplishing the research. It offers insights into the studies trouble
and hence facilitates in attaining the research objectives.Descriptive Analysis is the form of
analysis of information that allows describe, display or summarize information points in a
positive manner such that styles would possibly emerge that satisfy every situation of the
facts. It is one of the most vital steps for accomplishing statistical data evaluation. Descriptive
analysis characterizes the world or a phenomenon answering questions about who, what,
where, whilst, and to what volume. Descriptive analysis stands on its very own as a research
product, which includes when it identifies socially vital phenomena which have now not
previously been identified.

This strategy allows scholar to opt appropriate data gatherings as well as evaluation system.
Therefore, this is far to maximum significance to adopt proper approach at the same time as
accomplishing study. This offers in depth investigators difficulties as well as hence facilitates
into accomplishing the investigator objectives. Descriptive analysis is kind of evaluation of
information which permits to explain, display or abridge information aspects into positive
way so that styles that would possibly come out which satisfy all situation of facts. Also, this
is one of the much vital stages to attain numerical information analysis. Descriptive
evaluation characterise the ideas to answers the questions regarding who, what, where while
to whom volume. Also, descriptive analysis states upon their very considered as investigation
items, that includes while this determines socially vital aspects which has currently not before
been identified.
Data Analysis
Within this chapter, investigators determine the information with assistance of
particular numerical techniques for evaluating the information as well as identify the effective
finding and results of research.
Theme 1: Projects behind the crypto currency benefit to build a more equal society.
Interpretation: Crypto currency has become well known as well as much famous
across the overall world. However, it is being relatively new, so most of the individuals are
not familiar with this. Additionally, crypto currency is considered as the e-money which is
stored into electronic wallets or computer files. In addition to this, it is transferred as well as
traced through utilising block chain technology. This traces all updates or transfer
chronologically. Thereafter, this stores the data cryptically so that anyone may observe it.
Furthermore, the existent information may not be modified.Bit coin is undertaken as the most
useful cryptocurrencies. Moreover, there is thousands of distinct availability of crypto-
currencies.Not whole crypto currencies provide the similar intent.
Furthermore, there is now a whole industry developed around digital currencies and
it's held with the guide of foundations dedicated to administering all of the virtual coin trades
occurring sooner or later of the field. The cost where the computerized cash industry is
making is groundbreaking and this will be certified through early adopters that became rich
present moment and seen likely results to encourage monetarily. Bit coin, the best notable of
those advanced types of cash, has at this point permitted various individuals and relationship
to enlarge and thrive, even as many likewise rely upon exchanging as their stock of pay. The

financial structure is steadily moving to create to these cravings and advanced types of cash
have an uncommon cutoff in fulfilling them. There right now are numerous applications and
applications that work with the utilization of cryptographic forms of money and get them the
course of the more extensive audience. Apart from this, the conveyed benefit of digital
currency use is that it's totally decentralized, so exchanging can be finished uninhibitedly all
through borders.
Theme 2: Growth of crypto currencies and crypto assets in general undermine banks' role and
influence in the UK economy.
Interpretation: At present times if technologies are enhancing according it is
developing the world digitally. So, the growth of crypto currencies as well as crypto assets
within economy is also maximising. Banks can definitely play a regular situation inside the
crypto venture, including a couple of parcels needed guarantee and wellbeing towards a great
extent unregulated environmental factors. Embracing digital forms of money and block chain
period general can smooth out approaches and bring banking into the accompanying
innovation of productivity and development. These individuals that during greatest cases are
now monetarily burdened ordinarily inn to questionable and perilous loaning rehearses. The
cost of those practices is something however fair, which along these lines prompts additional
flimsiness significant number individuals who asked the home loan. This is the place where
cryptographic forms of money are accessible with their inordinate instability and
straightforwardness of-use. While decentralized monetary organizations ought to compromise
banks' long-lasting period reasonability, the on the spot danger presented through bit coin and
its companions is insignificant. Its cost in fiat phrases is hazardous to the point that tolerating
a benefits or eliminating a home loan in bitcoin may be uncommonly unstable.

As per the report and commentaries of press related to crypto currency fluctuates from widely
enthusiastic towards highly in adverse way, this is essential for bankers to undertakes the
stock of exact trends into the areas. Moreover, the much prominent crypto currency, Bitcoin
is a higher speculative investment. In addition to this, it minimises through above 75% from
their peal in December 2017 but have since regained a third of that losses.
Based upon the above, the continuous momentum into crypto currency becomes clear from
the investment pace through institutional investors, private equity funds and venture capital
entities. Additionally, the invested funds per deal have enhanced from around $ 5 million in
year 2015 to almost $ 20 million at the initial two quarters of year 2020, much greater than