Social Impact of Cryptocurrencies

Abstract

Cryptocurrencies have changed the financial industry and have the potential to make a considerable social impact. Since cryptocurrencies are a new phenomenon in the financial market, research on the social impact of cryptocurrencies remains in the initial stage. This chapter aims to present the current research stage on the social impact of cryptocurrencies. The findings from the review of the literature are structured to positive (financial inclusion, provision of access to credit, remittances, empowerment of individuals and communities, and philanthropic initiatives) and negative (high risk, illicit activities, and environmental harm). The chapter shows most of the findings are inconsistent and the conclusions vary. It is argued in the chapter that the negative impact of cryptocurrencies on the social fabric prevails due to the very meaning (nature) of cryptocurrencies.