A Project Analysis of the Introduction of Public Cryptocurrencies - The Example of Sand Dollar and Digital Real

Abstract

The proliferation of cryptocurrencies has shed a whole new light on the way financial markets operate. It is not just the emergence of a new type of financial instrument in payment habits, but much more than that. It fundamentally changes the way we have always thought about money, it changes the way the traditional financial and banking system works, it redefines financial supervision and it gives anonymity to market players. We are talking about a financial system that does not see the need for public economic policy, central banks or any other supervisory body. The value of reform and novelty cannot be questioned here, but this novelty has not been welcomed by all to the same extent. Crypto-assets and crypto-markets have been a rather divisive issue. Some people are confident in the new instruments, while others are distrustful and see them as a sham. A system without supervision and control may, it is true, create some mistrust among economic operators, but cryptocurrencies have spread very rapidly around the world and there are now billions of USD invested in cryptoassets. There are many advantages that attract investors to these assets, even though they are considered to be one of the most volatile assets. Nothing is more proof of this than the fact that governments and central and commercial banks are increasingly turning to cryptocurrencies. The aim of this paper is to provide a literature review of the main reasons for the popularity of cryptocurrencies and to present concrete examples, through primary research, that show that the crypto market is not only accessible to individuals or businesses, but also to governments, banks and investment companies. The study is a novelty compared to previous literature on cryptocurrencies in that it includes the state as a crypto market player and provides illustrative and instructive examples.