The Evolution and Impact of Cryptocurrencies on Global Financial Systems: Technological Foundations, Current Applications, and Future Challenges

Abstract

This paper focuses on the disruptive dangers of cryptocurrencies in redefining money for future, through old perspective Barter exchange to new prospective modern digital currencies. The potential and promise of cryptocurrencies to disrupt global finance are explained in the study with a detailed introduction on how they operate, what the reality looks like today from their use perspective, as well as an overview of what challenges need to be overcome for them to have any chance at all changing our current financial system. When looked along with the said these results and some of current news about blockchain deployed as a secure-less centralized transaction platform; it at least could pave more road for financial inclusion or happier situation where making cross border money transfer would stand simple. Wrapping it all up, we will delve into how historic the growth of cryptocurrency market capitalization can be and what this means for traditional financial institutions. In examining particular cryptocurrencies, we further argue that these are a unique class of highly volatile financial products which intersect with investment (and to some extent speculation) and as such have necessitated the development of new modalities in risk governance. It also includes major obstacles, such as regulatory issues or security considerations, being not scalable. We touch upon the implications of this trend in context to CBDCs as well and liberate into broader macro theoretic contemplations on employment elasticity and implication where monetary policy means falter, global trade flow influences & international economic power relation system. The research study states that a greater adoption of blockchain, better guided standards and strong advances in inflow chains will help combat the issues at hand. Given the above, there will be parts of how money works today that stay constant and new constructs in the way we transact with fiat but most definitely around cryptos etc.