Economic Implications of Cryptocurrency Adoption: Challenges and Prospects

Abstract

The emergence of blockchain technologies seems to experience rapid growth and generated lots of activities around the globe, where people use cryptocurrencies for transactions and as investments. Nigeria's cryptocurrency market is surging due to the devaluation of the naira and has caused local currency to depreciate. Cryptocurrencies are part of a broader wave of technology that facilitate peer-to-peer (P2P) commerce and personalization of market products. The technology creates money without central banks and facilitates payment without financial institutions. This paper explores the economic implications of cryptocurrency adoption. The study highlights the strengths and limitations of both traditional financial systems and decentralized alternatives in an overview. This paper also sheds light on the potential economic implications, challenges, and prospects associated with cryptocurrency adoption. The paper serves to inform policymakers, researchers, and market participants in understanding and navigating the evolving landscape of cryptocurrencies and their role within the broader economy.