Currency, Cryptocurrency, Blockchain, Fintech

Abstract

This chapter starts with identifying and analyzing the traditional currencies, their dynamics, and the macroeconomic relationships based on currencies. The forward premium puzzle is introduced and explored. Then the chapter moved to the cryptocurrency section. Different utilizations of cryptocurrencies are presented as (1) medium of exchange, (2) standalone investment opportunities, and (3) enhancements of traditional portfolio performance. Popular cryptocurrencies are compared and contrasted. Blockchain representing a decentralized ledger system is assessed (1) as processing and recording transactions and (2) as a designed ecology for cryptocurrencies. Finally, popular fintech innovations and the associated organizations are categorized. The chapter concludes with an empirical research project. This project is about the investigation of the existence of the forward premium puzzle between the currencies and interest rates of two countries. The guidelines for collecting the empirical data, executing the estimation methodology, and interpreting the results are provided.