Blockchain and Cryptocurrency Development Without Regulation

Abstract

Blockchain is a technology based on a chain of interconnected blocks containing transaction history and user data. Blockchain permitted the creation of crypto-currency. Among its advantages are decentralization, transparency, and integrity. This technology has increased with COVID-19 with the accentuation of the wave of digitalization. Classic finance systems felt overwhelmed by events and tried to catch up with this new wave by creating their cryptocurrency and embarking on this new world of digital finance where regulation and control are nonexistent. Many central banks see the introduction of central bank digital currencies. But the expansion of these cryptocurrencies could present risks in terms of transmission of monetary policy, monetary creation, and financial stability. In this work, the authors present the evolution of cryptocurrency and the reaction of classic finance systems to this wave of digitalization of transactions and especially to an absence of regulation.