Bitcoin, the world’s first cryptocurrency, was first introduced in 2009, by Satoshi Nakamoto. While many believe the name is a pseudonym, and the true identity of the creator(s) is unknown, it is an undisputed fact that cryptocurrencies have introduced an indelible change to monies worldwide. Consequently, cryptocurrencies have also introduced a plethora of new opportunities for money laundering activity.\nWhile cryptocurrencies follow the same three-step laundering process of placement, layering, and integration, the activity can be more difficult to detect due to the anonymous nature of cryptocurrencies. Moreover, while traditional schemes such as smurfing or gambling at a casino are still used as laundering techniques, more advanced methods such using mixers and tumblers or utilizing unscrupulous cryptocurrency exchanges are also being used to mask the flow of funds. Finally, the rapid increase in initial coin offerings (ICO’s) provides yet another outlet for cryptocurrency money laundering to occur.\nFortunately, advancements are being made on a variety of fronts to address the increase in illicit activity. First, the largest cryptocurrency exchange, Coinbase, has implemented a robust know-your-customer (KYC) program, as evidenced by my own experience of opening an account with the exchange. Secondly, researchers are finding new ways to extract information about certain cryptocurrency transactions which were previously thought to be unidentifiable. Finally, both law enforcement and government agencies, including the SEC and the Financial Crimes Enforcement Network, are using innovative, aggressive, and even clandestine techniques to combat cryptocurrency money laundering activity.
Abstract Blockchain technology has been considered a vehicle to foster development in poor countries by promoting applications such as secure delivery of humanitarian aid, digital identity services, and proof of provenance. This article examines whether (and if so, how) blockchain technology can enhance the effectiveness and efficiency of foreign aid governance, thereby moving beyond completely anonymous contexts. Foreign aid governance is plagued by lack of credible commitments among states, which are further exacerbated by information asymmetries and which often undermine aid effectiveness. In this context, blockchain technology holds two promises. First, through the guaranteed execution of smart contracts, it can strengthen the credibility of state commitments, for example collective burden-sharing rules among a group of donors or recipient country compliance with policy conditionality in return for aid. Second, through leveraging prediction markets, blockchain technology can allay information problems related to the verification of real-world events along the entire aid delivery chain.
Purpose The purpose of this paper is to assess the channels of education financing as they exist currently in Iraq. It argues that the current model of financing is highly centralized and in order to encourage a school-based management and better school outcomes, there needs to be decentralization of financing. The paper considers block grants as a mechanism for decentralization and explores other country experiences in this area. Design/methodology/approach The paper opts for both an analytical and exploratory study of the financing channels in the education sector in Iraq based on both primary field-based surveys and secondary sources of information such as World Bank and UN documents. For understanding other country experience of school block grant provision, the paper reviews literature and attempts to find learnings for Iraq. Findings The paper provides a detailed insight into the service delivery modal and channels of education financing in Iraq across multiple tiers. It argues that the centralized model of education financing is one of the factors that contribute to weak school governance and school performance indicators. It explores the idea of school block grants as a model of decentralized financing and a review of other country experiences on provision of school block grants gives some interesting insights into what might work for Iraq. Research limitations/implications Economic wars, sanctions and conflict have severely affected the country and as a consequence there are very limited data and information available and this has impacted the study. Furthermore, though the country has been liberated from ISIS, the peace is fragile and any research findings have to be seen in this background. Practical implications The paper does not stop at identifying the problem, i.e. centralization of financing but attempts to explore and provide a way to get around this in the form of provision of school block grants. Originality/value There are very few studies that explore the service delivery model and financing channels in the education sector in Iraq and therefore this paper should add value to any discussion on post-conflict reconstruction.
Abstract This special section shifts analytical attention onto efforts undertaken by dispersed sets of actors operating in online communities to mobilize a novel internet‐based technology that mysteriously appeared at the height of market volatility in 2008. Applications of blockchain technologies and the challenges presented to longstanding patterns of financial globalization are analysed by a group of scholars with backgrounds in anthropology, political science and sociology. This introductory article first elaborates what blockchain technologies consist of before foreshadowing the insights that the following interdisciplinary investigations yield for comprehending the implications that technological changes pose for global finance specifically and globalization more generally.
Fintech, which is a shorthand expression for financial technology, is basically referring to all the technological innovations in the financial sector that started to develop exponentially, especially in the second decade of the 21st century, in the era of the mobile internet revolution.The Generation Z, also called Gen Tech, who was growing up using the internet and especially the mobile internet on a daily basis, will probably be the larger adopter and beneficiary of these innovative financial technologies.The current generation of students, born about twenty years ago, is part of this cohort and this is why we decided to initiate a study regarding their perception and behavior concerning the fintech area with the help of a questionnaire applied on some of the students of the Faculty of European Studies from Babeș-Bolyai University.Because the fintech is covering financial innovations from a very broad area (including cryptocurrency, online payments, financial transfers, openbanking, investments, regtech, insurtech, etc.) we decided to focus in this preliminary study, only on the blockchain technology and cryptocurrencies and in relation to these, on the online payments.
Focusing on the overlapping areas of the logistics industry with a large number of mature blockchain applications and the public welfare industry that requires high transparency and credibility, this paper designs and implements an innovative philanthropy logistics platform based on blockchain technology through the Ethereum platform. Our platform makes use of the open, transparent, and irrevocable features of the blockchain, combined with a unique Responsibility Relay System and Evaluation and Reporting Mechanism, and can achieve the consistency of the data on the chain with real-world status, as well as the authenticity and transparency of philanthropy logistics data. This paper also establishes a model for evaluating philanthropy material donations for social welfare based on the classic network maximum flow algorithm. After four months of empirical analysis, we have concluded that the blockchain platform can greatly increase the user's trust in the project, enhance the system's cleanliness coefficient and increase the quality of philanthropically raised materials, thereby improving the public welfare of charitable donations. The paper draws the conclusion that this blockchain platform is a technical solution for maximizing social welfare.
The paper presents the blockchain crowdfunding technology and its economic implications. It is a separate, decentralized model of social funding, based on “block chains”, growing in response to technological progress, as well as to expectations of IT users with respect to the increasing popularity of cryptocurrencies and the demand for new categories of systems. The essence of the blockchain technology is presented, along with the potential benefits and the variety of applications, especially in the field of banking and finance. The blockchain crowdfunding model and the Initial Coin Offering process are described. Furthermore, the global blockchain crowdfunding market segment is estimated and analyzed. The main benefits and factors (risks) of the model are identified, as well as its growth prospects.
Regulators in many countries, including India, view cryptocurrencies as a combination of a bubble and a Ponzi scheme. The Reserve Bank of India has taken steps to dissuade Indian citizens from dealing in cryptocurrencies. However, last year’s surge in the price of cryptocurrencies has lured many taxpayers into investing or trading in it. Not only is a tussle relating to the fate of cryptocurrencies in India pending before the Indian Supreme Court, the income tax implications of cryptocurrencies are also looming. This article analyses the plausible income tax implications of dealing in cryptocurrencies in India.
As a foundational technology, blockchains have demonstrated their ability to remove middlemen and streamline ledger-based transactions in everything from cryptocurrencies (e.g. Bitcoin) to centralized voting. In many underdeveloped countries, blockchain-based technologies provide opportunities for transparent transactions between parties, reducing corruption and facilitating trust. Much research on blockchains to date has focused on its virtues, but far less attention has been paid to its inherent risks and dangers. In this paper, we examine the risks and dangers of relying on blockchains in underdeveloped countries. Despite its many promises, blockchain technologies face significant hurdles for adoption in underdeveloped countries; in this paper, we explore eight these risks and dangers.
The cryptocurrencies are important topics in economics literature because their significance for the monetary system as innovations in information and communication technology are impacting the conventional thinking about currency, money and payments as they are used over the internet outside existing banking systems. At the same time, all innovations in payment systems come with risks associated with cyber security, speculative investments and money laundering. In present due to their little usage comparing to the total amount of cash and other legal tenders they do not pose risks to financial stability, but as they will increase in volume, they may impede “the central banks’ core functions: monetary policy, financial stability, payments and currency†and the safeguards of investors in cryptocurrencies. One opinion expressed in economics is that in order to mitigate some of the particular risks entailed by cryptocurrencies’ circulation on global financial and monetary system the central banks should considering the issuing of “central bank digital currencies†.
The relationship between economic growth, growth volatility and financial sector development continues to attract attention in the theoretical and empirical literature. Over time, some studies hypothesize that finance has a causal linear relationship with growth. Recently several other authors contradict this claim and argue that the relationship that exists between finance and growth is nonlinear. We investigate these claims for Nigeria for the period between 1970 and 2015, using semi-parametric econometric methods, Hansen sample splitting techniques and threshold estimator. We observed no evidence of ‘Too much finance’ as claimed by many researchers in recent times. We show that the relationship between financial development and economic growth is U-shaped. This is equally true for the relationship between financial development and growth volatility. We also discuss policy implications of our findings and recommend financial innovations and decentralization of stock exchanges to boost access to financial services, in addition, improved regulation to enhance financial market efficiency.
The rapid rise of cryptocurrency adoption appears to effect the ability of people to improve their lives. In this paper, the most ubiquitous cryptocurrency, Bitcoin is used to investigate effects on financial inclusion and human development. The findings in this paper show a strong positive correlation between bitcoin transactions and human development, between bitcoin transactions and financial inclusion and between financial inclusion and human development. The Bitcoin effect is identified as having a cyclical relationship on financial inclusion and human development. While the Bitcoin effect has a very positive effect on the global economy, this paper uses these results to investigate what business models are enabled through the Bitcoin effect. Cluster analysis is carried out to identify business models that are relevant to the country categories they represent. Three business models are identified from the Bitcoin effect that relate to the country categories they represent. These are miners, innovators and wallets. This paperâs contribution is in discovering and describing the key characteristics of the Bitcoin effect and the business models it generates globally.
Essence of cryptocurrencies is considered in the article, their risks and prospects of development in Ukraine and world. Advantages and disadvantages of crypto currency are described. Positions of foreign central banks and other financial regulators are lighted up in relation to cryptocurrencies and markets of cryptocurrencies. It is offered, that the experience of Japan, Switzerland, the United States and England in this question should be used as a fairway. It is marked that corresponding activity and financial services must be licensed by the state as a type of professional activity on the stages of formation of cryptocurrency (mining) and support of its circulation (trading and financial consulting).
Joseph Wall, D. Larry Crumbley, Lewis B. Kilbourne, Caleb Blair
In this report, the authors discuss cryptocurrencies — especially bitcoin — and argue that because the IRS lists them as property, they are taxable, and because they are not as anonymous as once thought, they are not free from fraud. Cryptocurrencies are digital assets used as a medium of exchange, but they are not really coins. They can be sent electronically from one entity to another almost anywhere in the world with an internet connection. There are many cryptocurrencies in the market, including bitcoin, ethereum, ethereum classic, litecoin, nem, dash, iota, bitshares, monero, neo, and ripple. Many of the cryptocurrency networks are not controlled by a single entity or company; instead, a decentralized network of computers keeps track of the currency using a token ID. A ledger maintains a continuously growing list of date stamped transactions in real time called “blocks.” This technology is known as blockchain, which records, verifies, and stores transactions without a trusted central authority. The network instead relies on decentralized autonomous organizations (DAOs) with uncertain legal standing.
Just like its recent predecessors, blockchain – also known as the distributed ledger technology – is considered to have the potential to cause major economic, political and social transformations in the Global South. The visible effects of this technology are already being noted there. We present early evidence linking the use of blockchain in overcoming some economic, social and political challenges facing the Global South. The article highlights the key applications and uses of blockchain in developing countries. It demonstrates how blockchain can help promote transparency, build trust and reputation, and enhance efficiency in transactions. The article looks at opportunities and key triggers for blockchain diffusion in these countries. It also delves into challenges and obstacles that developing economies are likely to encounter in the use of blockchain.
Digital currency platforms such as Bitcoin, Ethereum, and Ripple are slowly but surely revolutionizing trade and commerce alongside their potential to impact people's economic lifestyles immensely. Digital currencies present a unique medium for humanitarian, mission, and more notoriosly arms and terrorism transactions around the globe. Various factors like security, legislature, and infrastructure affect the viability of adopting digital currencies in developing countries such as Zimbabwe. The research study assesses whether this technology's shortcomings outweigh the conventional means of exchange: hard cash, gold, and checks. Therefore, aiding stakeholders in making informed decisions concerning interfacing technology with economics in the developing world.
Lakshmi Prasad. Chinthalapalli, Y. V. Lakshmana Rao
The sustainable development of State requires infrastructure and good governance system i.e. Infrastructure, decentralized administration, digitalization, technology based E-governance; infrastructure finance will help the government of Telangana to attain the new heights of economic growth and development. The development process of Telangana is a better design through T-hub, Policy initiatives and peoples participation.
The study attempted to investigate how leadership can be used to combat corruption in decentralized governance structures of Ghana. In conducting the study, purposive sampling technique was employed to select key officials of GA south municipal assembly whose duties often promote corrupt practices. The questionnaire technique was the research instrument while a statistical package for social science was used to facilitate the analysis of data captured from the field. Findings of the study noted that under invoicing, over invoicing, payment for works not done among others are serious corrupt practices prevailing within the decentralized grassroots governance structures. It also came to light that political interference, appointing political operatives to key positions in governance units all promotes corrupt practices. The study noted that if political interference can be removed in the administration of these decentralized structures, effective leaders who are mainly technocrats can offer sound management framework for carrying out the developmental agenda of these decentralized structures. The study called on government of African countries to endeavour to finance the activities of political parties so as to remove the need for amassing wealth through fair or foul means for strengthen political structures to win elections. Strong leaders are required towards combating corruptions, however there is the need to ameliorate completely the effect of political interference in the administration of decentralized governance structures.
The paper reviews the last technological tools that arguably can contribute to reducing the excessively high costs of remittance transactions in Africa. Indeed, despite huge remittance inflows to and within the continent, Africa is the most expensive destination to send money to. As remittances have become more important than Overseas Development Assistance and Foreign Direct Investment inflows in some countries, it has become crucial to explore technological advances that can contribute to reducing their transaction costs. Such reduction would enable the end beneficiaries to capture a larger share of these external resources, which in turn could have an even bigger impact on development in Africa. In addition to revisiting the role of mobile banking in lowering remittance transaction prices, the paper takes a closer look at the newest available technology, the Bitcoin blockchain technology that underpins digital currencies. At this early stage, very few social science researchers have addressed the role that such digital currency could play in the reduction of the remittance transaction prices, except for a few innovative Bitcoin operators. The paper proceeds as follows. It first looks at the causes of the high remittance transaction costs. Then, it reviews, presents and analyses the official remittances data downloaded from the World Bank's Remittances Prices Worldwide database. It also briefly reviews a few remittance transfer technological instruments. Given the novelty of the topic, the review of the most recent existing "literature" on Bitcoin is mainly retrieved from either on - line news sources or information from a few leading Bitcoin operators. In the light of the UN Global Working Group Post-2015 Development Agenda and Sustainable Development Goals proposal to reduce by 2030 the remittance transaction costs to even less than 3%, the effectiveness of these new technological instruments to reach such objective are discussed. Finally, a number of appropriate policy actions to foster the economic impact of remittances are proposed.
In this article, we explore the formidable yet untapped capabilities of Blockchain technology and Bitcoin in order to alleviate poverty. We focus on the Republic of Moldova, which has been plagued by endemic corruption and persistently high poverty levels since her independence in 1991 following the collapse of the Soviet Union. The transformative power of Blockchain technology and Bitcoin are then evidenced through a dual analysis of tourism 2.0 (with a real-world case study) and e-governance, which can contribute to increased inward capital investment flows, and help fight off corruption practices. Finally, we conclude that these new technologies constitute a significant step in the right direction, in order to break away from twenty-five years of disappointing socio-economic development performance.