This paper examines interlinkages and hedging opportunities between nine major cryptocurrencies for the period between 30 September 2015 and 4 June 2020, which notably includes the coronavirus disease 2019 (COVID-19) outbreak lasting from early 2020 through the end of the sample period. The results of dynamic conditional correlation (DCC) analysis using a minimum connectedness approach show a high degree of correlation between cryptocurrencies throughout the sample period. However, the correlations reach their minimum values during the COVID-19 pandemic, which indicates that cryptocurrencies acted as a hedge or safe haven during the stressful period of the COVID-19 pandemic. The weight of cryptocurrencies was significantly reduced and their hedging effectiveness varied greatly during the pandemic, which indicates that investors’ preferences changed during the COVID-19 period.
There has been a remarkable increase in the number of publications on international trade and cryptocurrency in recent years. This paper aims to analyze the literature on international trade and cryptocurrency in the Web of Science database. This study uses the bibliometric method and mapping analysis. The cluster analysis is conducted based on the keyword analysis. These publications are reviewed from different aspects such as type of publication, language, and book title. This study found that 767 articles which are related to cryptocurrency and international trade. Among the countries in which these studies are conducted, China ranks the first, followed by the USA and UK, respectively. Various organizations in different countries support studies on this topic. In conclusion, cryptocurrency technologies draw the attention of academia, and the use of cryptocurrency in international trade will determine the future trade structure. The innovative features of cryptocurrency can develop new business models, which may be the reason for the academic interest in this matter. It will be useful for businesses and governments to follow this potential carefully to benefit from the advantages of innovative business models.
In this paper, we attempt to explore the extent to which the hard won development gains over the last several years could be reversed due to the unfolding COVID-19 global pandemic, how we can reboot the global response to accelerate the SDGs in times of uncertainties, and most importantly how to turn the recovery into an opportunity to build back better and more resilient economies. To do so, we examine the case of blockchain as one of the emerging innovative work-streams in development practices that could lead the way forward and pave the path for new developmental narratives as we all navigate the uncharted territories of the new digital age. This paper provides useful insights about the underlying dynamics underpinning the adoption of blockchain backed-solutions for sustainable development, and it showcases some of the promising use-cases being developed through trial-and-error experiments by its early adopters. The paper offers a deep dive into a burgeoning development practice in search of disrupting business-as-usual to solve increasingly complex development challenges by mainstreaming innovations such as blockchain-enabled solutions to rethink the ways in which development solutions are being delivered across the SDG spectrum. This work points to the significant potential of blockchain technology as a game changer in solving some of the most pressing issues hindering the global recovery post Covid-19 to transition towards greener and more inclusive economies. Nevertheless, we also stress that the hype-cycle behind the “let’s blockchain it” trend does not mean that blockchain-backed solutions are necessarily superior to other alternatives which might be less costly and less technical in nature. Development practitioners prototyping and implementing blockchain-based solutions for sustainable development can utilize these insights and discussions to make informed decisions in their journey to harness the disruptive potential of blockchain alone or in tandem with other emerging technologies in the new world of business as unusual.
Purpose This study aims to analyze the importance of disruptive technological innovations on qualitative service delivery and their impact on the investment banks’ employee performance. Design/methodology/approach The cluster sampling method has been used to collect the primary data from the 250 respondents from foreign investment banks. Variables used are employee performance, service delivery, technology, security, operations, strategy and quality through chi-square, linear stepwise multiple regression analysis and correlation. Findings Storage network, operating cost, client reporting, cloud system and money laundering are the highest and most significant predictors of employee performance. Employee performance multiplies every unit with a strategic solution owing to positive and robust correlation (0.944). Fusion technology-based banks offer quality service to their clients. Originality/value A combination of artificial intelligence and blockchain ensures increasing automation to improve efficiency and reduce the operating cost creating a seamless integration in fraud detection, customer support, risk management, security, digitization and automation process, algorithmic trading, wealth management, etc.
COVID-19 has morphed from a health crisis to an economic crisis that affected the global economy through several channels. This paper aims to study the impact of COVID-19 on the time-frequency connectedness between Green Bonds and other financial assets. Our sample includes the global stock market, bond market, oil, USD index, and two popular hedging alternatives, namely Gold and Bitcoin, from May 2013 to August 2020. First, we apply the methodologies of Diebold and Yilmaz (International Journal of Forecasting, 2012, 28(1), 57–66) and Baruník and Křehlík (Journal of Financial Econometrics, 2018, 16(2), 271–296). Then, we estimate hedge ratios and hedge effectiveness of green bonds for other financial assets. Green bonds are found to have a great weight in the overall network, particularly strongly connected with the USD index and bond index. While the bi-directional relationship with USD persists during COVID, the connectedness with conventional bonds is also strengthened. Notably, we find a weak relationship between Green bonds and Bitcoin, both in the short and long run. As portfolio implications, Gold and USD have the highest hedge ratio, which is confirmed by the hedging effectiveness. In contrast, oil and stocks exhibit the lowest hedging effectiveness. Our findings imply that financial assets might have a heterogeneous relationship with green bonds. Furthermore, despite its infancy, it seems that the role of green bond during a crisis should not be ignored, as it can be a hedger for some assets, while a contagion amplifier during crisis times.
This research investigates the appropriateness of the linear specification of the market model for modeling and forecasting the cryptocurrency prices during the pre-COVID-19 and COVID-19 periods. Two extensions are offered to compare the performance of the linear specification of the market model (LMM), which allows for the measurement of the cryptocurrency price beta risk. The first is the generalized additive model, which permits flexibility in the rigid shape of the linearity of the LMM. The second is the time-varying linearity specification of the LMM (Tv-LMM), which is based on the state space model form via the Kalman filter, allowing for the measurement of the time-varying beta risk of the cryptocurrency price. The analysis is performed using daily data from both time periods on the top 10 cryptocurrencies by adjusted market capitalization, using the Crypto Currency Index 30 (CCI30) as a market proxy and 1-day and 7-day forward predictions. Such a comparison of cryptocurrency prices has yet to be undertaken in the literature. The empirical findings favor the Tv-LMM, which outperforms the others in terms of modeling and forecasting performance. This result suggests that the relationship between each cryptocurrency price and the CCI30 index should be locally instead of globally linear, especially during the COVID-19 period.
Shaen Corbet, Yang Hou, Yang Hu, Charles Larkin · 6 authors
We examine the interactions between cryptocurrency price volatility and liquidity during the outbreak of the COVID-19 pandemic. Evidence suggests that these developing digital products have played a new role as a potential safe-haven during periods of substantial financial market panic. Results suggest that cryptocurrency market liquidity increased significantly after the WHO identification of a worldwide pandemic. Significant and substantial interactions between cryptocurrency price and liquidity effects are identified. These results add further support to the argument that substantial flows of investment entered cryptocurrency markets in search of an investment safe-haven during this exceptional black-swan event.
Mahboob Ullah, Maria Shaikh, Imran Abbas Jadoon, Muhammad Azizullah Khan · 5 authors
Purpose of the Study: In this research, the association between the COVID-19 pandemic and cryptocurrencies' price volatility has been examined.
 Methodology: To check the contagion effects of the COVID-19 pandemic on the price volatility of cryptocurrencies: BITCOIN, LITECOIN, XRP(RIPPLE), and ETHEREUM, the prices of all four are deployed from 10th August 2016 to 10th August 2020. The exponential generalized autoregressive conditional heteroscedastic (EGARCH) model is used to check the leverage effect exists or not. Stata 16 has been used to execute all the tests.
 Main Findings: The study's findings indicated that the leverage effect on the price volatility is present for LITECOIN, XRP(RIPPLE), and ETHEREUM but not for BITCOIN.
 Applications of the study: This study is significant for investors to develop strategies for investments and secure the transactions and control the creation of additional currency units. Also, it gives insight to the policy and decision-makers to articulate proper guidelines to overcome or minimize the effect of COVID-19 on cryptocurrency.
 Novelty/Originality of this Study: The motive for taking the crypto market into account is that the crypto market is one of the emerging markets and has started to have significance worldwide, linking with financial markets and economic growth. The leverage effect of COVID-19 is considered in this study as the epidemic has affected the supply and demand of goods due to lockdowns, blockages, and disruptions in delivery chains that lead to undiminished economic growth.
The Covid 19 pandemic is the first major crisis facing cryptocurrencies. Therefore, the reaction of the cryptocurrency markets is important. News about epidemics affects investors' decisions. Panic index (PIndex) is an index created from news about the Covid 19 outbreak. In the study, it is used to measure the impact of decisions on the crypto money market. As cryptocurrencies, Bitcoin (BTC), Etherium (ETH), and Ripple (XRP), which have the highest transaction volume in the crypto money market, are included in the analysis. The relationship between Panic Index and the three major cryptocurrencies with the largest share in the cryptocurrency market was investigated by Ardl and Hatemi-J asymmetric causality test. Traditional causality tests acknowledge that the effects of positive and negative changes are the same. However, there may be asymmetric information and different investor behaviors in financial markets. In the study, Hatemi-J [ 1 ] Asymmetric Causality Test was conducted to examine the asymmetric relationship and symmetric relationship between Pindex and cryptocurrencies by separating them into positive and negative shocks. According to the results of the Hatemi-J causality analysis, positive shocks in the panic index are the cause of negative shocks for all cryptocurrencies. In other words, increases in the panic index are caused to fall the value of Bitcoin, Ethereum, and Ripple cryptocurrencies decrease. The results show that cryptocurrencies were not a safe haven for the investor during the Covid 19 period, as they acted similarly to other financial assets.
Seyram Pearl Kumah, David Adjei Abbam, Ransford Armah, Evelyn Appiah-Kubi
The COVID-19 pandemic provides the first widespread bear market conditions since the inception of cryptocurrencies. We test the haven properties of cryptocurrencies for African stocks and commodity markets in a pandemic implementing the frequency domain spillover index. Data spans 11th August 2015 to 28th August 2020 at a daily frequency. Findings show weak interconnectedness across markets suggesting non-contagion risk and that cryptocurrency are safe havens for African stocks and commodity indices from the medium-term. We find the major transmitters of spillover effects across markets to be time-varying and heterogeneous. This study provides significant risk diversification benefits for policymakers and investors in the African financial markets.
Samuel Asumadu Sarkodie, Maruf Yakubu Ahmed, Phebe Asantewaa Owusu
The COVID-19 global pandemic has disrupted business-as-usual, hence, affecting sustained economic development across countries. However, it appears economic uncertainty following COVID-19 containment measures favor market signals of cryptocurrencies. Here, this study empirically and structurally investigates the implication of COVID-19 health outcomes on market prices of Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. Evidence from the novel Romano-Wolf multiple hypotheses reveal COVID-19 shocks spur Litecoin by 3.20-3.84%, Bitcoin by 2.71-3.27%, Ethereum by 1.43-1.75%, and Bitcoin Cash by 1.34-1.62%.
The rapid worldwide spread of COVID-19 forced many countries to enforce complete lockdown and strict quarantine policies. The strict lockdown and quarantine affect the psychological state of people toward cryptocurrency. The current research aims to examine the effect of COVID-19 on Bitcoin prices concerning cumulative deaths and confirmed cases. The research comprises daily data from January 20, 2020, to April 30, 2020, during the initial worldwide breakout of COVID-19. This research employed the augmented Dickey-Fuller test to check the stationarity of data, the co-integration test for the interdependency of variables, and the vector error correction model for identifying the direction and long or short-run relationship between Bitcoin prices and COVID-19. The research results show that Bitcoin prices are negatively significant and related to COVID-19 in the short-run. A unidirectional relationship between Bitcoin prices and cumulative deaths is also observed. Investors and the public's psychological state were positively significant to Bitcoin prices in the long-term because of cashless transactions, unbanked, and less risky virus traveling. The second reason behind the positive psychological relation is un-centralization and easy-to-make payments by Bitcoin. This study's finding provides timely evidence to decision-makers on Bitcoin price volatility and its impacts on the public's psychological states regarding COVID-19.
This study aims that Bitcoin prices are considered as dependent variables, and the total number of Coronavirus cases in the world, Ethereum Prices, Gold Prices, Coronavirus Google Trend Index, and Crypto Money Google Trend Index are considered as independent variables. Using the ARDL model, it was analyzed with a daily data set between 21.01.2020 - 04.04.2020. It is concluded that the relationship between the variables included in the analysis and Bitcoin prices exists co-integrated in the long term. Within the framework of the findings, investors' fears were interpreted by associating them with Bitcoin and Covid-19.
Abstract The Covid-19 emergency is demonstrating the need to follow new solutions that can support the important role played by non-profit organizations around the world. Contrary to what should have happened to further combat the effect of pandemic, the majority of philanthropic organisations had a negative impact on fundraising, suffering a substantial decrease. Today, the Blockchain can play a pivotal role to re-establish pre-pandemic standards and enhance the development of global philanthropy. However, it is still too little considered due to the criticalities encountered during the launch and development of the initiatives as well as for a general incomprehension of its technology. Therefore, this work aims to demonstrate the Blockchain impact on the development of charity 4.0, especially in an extremely dramatic historical moment marked by the Covid-19 pandemic. The objective is achieved through the case study of Charity Wall, an emerging Italian social marketplace appreciated by important business associations for its innovative solutions in the charity 4.0 sector and for the important support provided to NPOs during their traditional function as well as against Covid-19 in Italy. Through a benchmark analysis, this work succeeds in highlighting the innovative solutions proposed by Charity Wall compared to the charity 4.0 systems on the market. More specifically, through the Charity Wall case study it is possible to demonstrate which aspects of Blockchain technology can be used to strengthen the philanthropic system by avoiding cases of fraud to the detriment of beneficiaries, receivers and donors as well as to create a closer network between the various philanthropic players to support charitable initiatives against the Covid-19.
Muhammad Abubakr Naeem, Saba Sehrish, Mabel D. Costa
Purpose This study aims to estimate the time–frequency connectedness among global financial markets. It draws a comparison between the full sample and the sample during the COVID-19 pandemic. Design/methodology/approach The study uses the connectedness framework of Diebold and Yilmaz (2012) and Barunik and Krehlik (2018), both of which consider time and frequency connectedness and show that spillover is specific to not only the time domain but also the frequency (short- and long-run) domain. The analysis also includes pairwise connectedness by making use of network analysis. Daily data on the MSCI World Index, Barclays Bloomberg Global Treasury Index, Oil future, Gold future, Dow Jones World Islamic Index and Bitcoin have been used over the period from May 01, 2013 to July 31, 2020. Findings This study finds that cryptocurrency, bond and gold are hedges against both conventional stocks and Islamic stocks on average; however, these are not “safe havens” during an economic crisis, i.e. COVID-19. External shocks, such as COVID-19, strengthen the return connectedness among all six financial markets. Research limitations/implications For investors, the study provides important insights that during external shocks such as COVID-19, there is a spillover effect, and investors are unable to hedge risk between conventional stocks and Islamic stocks. These so-called safe haven investment alternatives suffer from the similar negative impact of systemic financial risk. However, during an external shock such as COVID-19, cryptocurrencies, bonds and gold can be used to hedge risk against conventional stocks, Islamic stocks and oil. Moreover, the findings imply that by engaging in momentum trading, active investors can gain short-run benefits before the market processes any new information. Originality/value The study contributes to the emergent literature investigating the connectedness among financial markets during the COVID-19 pandemic. It provides evidence that the return connectedness among six global financial markets, namely, conventional stocks, Islamic stocks, bond, oil, gold and cryptocurrency, is extremely strong. From a methodological standpoint, this study finds that COVID-19 pandemic shock has a significant short-run impact on the connectedness among financial markets.
Health equity is a very important part of social equity. The outbreak of the novel coronavirus pneumonia (COVID-19) in a short period of time exposed the problems existing in the allocation of medical resources and the response to major public health emergencies in China. By using Kernel density estimation and Data envelopment analysis (DEA), it is found that the allocation and imbalance of medical resources in China are greatly different among regions, and the polarization phenomenon is obvious. As an important part of the information technology system, blockchain technology is characterized by decentralization and non-tampering. It can realize sharing of medical resources through a mechanism of resource storage, circulation, supervision, and protection. The construction of a medical resource sharing mechanism under the condition of blockchain technology will greatly improve the degree of medical resource sharing, will narrow the differences in resource allocation between regions, and can effectively respond to an outbreak of major public health emergencies.
Cross-contamination, counterfeit ingredients, false packaging, and labelling are all issues that contribute to food fraud which is a major concern undermining the integrity of the food supply chain and consumers health. Therefore, there is a need for an on-demand traceable, transparent food supply chain. This is a universal problem and blockchain presents itself as a means to maintain traceable, transparent food supply. This paper presents an innovative consensus algorithm and simulates the usage of it to identify the precision and recall of fraudulent food detection. This protocol aims to solve the issue of malicious leader node selection in common voting-based consensus protocols while achieving efficiency. Thus, providing a single version of truth for foods in a long food supply chain, preventing information asymmetries.
In this study, it was investigated whether the Covid-19 pandemic, which started to affect the world in early 2020, influenced the relationship between return volatility and trading volume in the cryptocurrency market. In the empirical part of the study, 40 cryptocurrencies were included in the analysis. The data were divided into two separate periods as before and during the pandemic. Two alternative estimators developed by Garman and Klass (1980) and by Rogers and Satchell (1991) were used to measure the return volatility of cryptocurrencies. With causality and simultaneous correlation analyses, it was determined that the sequential information arrival hypothesis was valid in the cryptocurrency market in the pre-pandemic period. In the pandemic period, the sequential information arrival hypothesis lost its effect and left its place to the mixture of distribution hypothesis.
Didik Gunawan, Mangasi Sinurat, Lukito Cahyadi, Rico Nur Ilham
This study aims to examine the dynamic relationship between the JKSE, S&P 500, gold prices, and bitcoin prices after WHO declared Covid-19 a global pandemic. The data used is daily data from March to November 2020 which follows trading days in the Indonesian capital market. Furthermore, this research uses VAR modelling to see how the impact of the Covid-19 pandemic on the relationship between the JCI, S&P 500, gold prices and bitcoin prices. The results showed that in the short term the S&P 500 has a positive and significant effect on JKSE, but in the long run it has no significant positive effect, in the long run the gold price has a negative and significant effect on JKSE and vice versa has no effect in the short term, both in the long term and in the short-term bitcoin has a negative and significant effect on JKSE. This research also shows that apart from gold, bitcoin has also become a safe haven for investors.