CRYPTOCURRENCY VOLATILITY AND ITS IMPACT ON NATIONAL CURRENCY STABILITY: A SECONDARY ANALYSIS OF MACROECONOMIC EVIDENCE

Abstract

Cryptocurrencies have emerged as a significant component of the global financial system, offering new opportunities for digital transactions and financial innovation while raising concerns about their high price volatility and its implications for national economies. This study examines the impact of cryptocurrency volatility on national currency stability through a secondary analysis of existing macroeconomic literature. A systematic literature review was conducted using peer-reviewed journals, institutional reports, and credible academic sources to evaluate the relationship between cryptocurrency volatility and key macroeconomic indicators, including exchange rates, inflation, monetary policy,financial stability, and economic growth. The findings indicate that the macroeconomic effects of cryptocurrency volatility vary across countries depending on financial development, institutional quality, and regulatory frameworks. While cryptocurrencies promote financial innovation and cross-border transactions, they also pose challenges for monetary authorities and policymakers. The study concludes that the impact of cryptocurrency volatility is context-dependent and highlights the need for further empirical research, particularly in developing economies and emerging digital asset markets.