Marvi Pabrekar

How does the adoption of cryptocurrency impact fragile international economies and what are the implications of broad crypto adoption?

Started Feb. 5, 2025

Abstract or project description

This research paper will explore the economic effects of crypto adoption in fragile international economies like Venezuela, Zimbabwe, and El Salvador, focusing on both the benefits and challenges widespread adoption presents. By analyzing real-world case studies, the study will examine how crypto adoption promotes financial inclusion, economic growth, and provide alternatives in crisis-ridden economies. Cryptocurrencies can serve as a tool to offer benefits such as faster, cheaper cross-border transactions and improved access to financial services, especially in regions where traditional banking practices and infrastructure is weak. It will also investigate risks like volatility and financial instability, and analyze the challenges that some regions may face, like insufficient infrastructure, regulatory obstacles, distrust, lack of education, and public skepticism. The study will consider how barriers such as high data costs, governmental resistance, and lack of technical knowledge can hinder the successful adoption of cryptocurrency, even when there is an enormous amount of potential for economic gain. The research paper will also consider the global implications of crypto adoption on financial markets and economic policy. Acknowledging concerns on data accuracy and trading practices, the study will analyze crypto’s role in emerging and global economies and understand the extreme potential of cryptocurrencies, offering insights into how governments, various financial institutions, and global businesses might expose themselves to gain and risk in the digital economy.