This chapter examines how blockchain technology might help achieve environmental objectives and promote financial inclusiveness. For marginalized groups, especially those in low-income and rural locations, who encounter major obstacles when attempting to use traditional banking institutions, blockchain's decentralized nature presents a possible answer. Blockchain opens up new financial participation opportunities by facilitating safe, affordable financial services like smart contracts, cryptocurrency, and decentralized finance (DeFi). While smart contracts improve transparency and efficiency in lending, insurance, and microfinance, cryptocurrencies enable peer-to-peer transactions without the need for middlemen. DeFi platforms promote economic empowerment by democratizing access to investment, credit, and savings options.
Rayane Farias dos Santos, César Augusto Tibúrcio Silva
Purpose: The study analyzed the relationship between investor sentiment and the return and trading volume of the main cryptocurrencies in Brazil during the COVID-19 pandemic. Methodology: Two metrics were used to capture investor sentiment: the Happiness Index (HFI) and the Fear Index (FEARS), collected through Twitter and Google tools. Data related to cryptocurrencies were collected from the Cryptocompare website. Quantile regressions were used to analyze variations in the impact of investor sentiment on different types of currencies. Results: The results indicated that happiness and fear affect cryptocurrencies heterogeneously, with HFI causing negative and positive impacts on the return of assets such as BTC, USDC, and USDT. FEARS had a predominantly negative impact on the return of cryptocurrencies such as BTC and BRZ but was positive on ETH. Regarding trading volume, IFH had an ambiguous influence on BRZ, while FEARS reduced the volume of BTC, USDT, and USDC. The distinct patterns of impact identified suggest that investor sentiment may be a key indicator for formulating strategies in a highly volatile and emotionally reactive market. Contributions of the Study: It contributes significantly to the literature by focusing on the Brazilian cryptocurrency market, which has been little explored in international research. It uses a quantile approach to examine how investor sentiment impacts multiple cryptocurrencies, offering a more detailed and non-linear analysis, something rare in the literature. Furthermore, investigating the behavior of cryptocurrencies in Brazil during COVID-19 provides critical insights into how collective emotions, such as fear and euphoria, affect market movements, especially in an environment dominated by individual investors, making the study relevant for emerging markets.
This study examines the market impact of China's comprehensive cryptocurrency ban announced in May 2021, employing an event study methodology. The investigation is motivated by the need to understand how major regulatory interventions affect cryptocurrency markets, given their growing significance in the global financial ecosystem. Using daily price data for Bitcoin and Ethereum, we analyze abnormal returns (AR) and cumulative abnormal returns (CAR) around the announcement date. The analysis reveals significant negative market reactions, with Bitcoin experiencing a CAR of -70% and Ethereum -87% during the 30-day post-event window. Our findings suggest that this ban had a more severe and persistent impact compared to previous regulatory actions, reflecting the market's heightened sensitivity to comprehensive regulatory measures. The results demonstrate the substantial influence of major regulatory interventions on cryptocurrency market stability and provide important implications for policymakers considering cryptocurrency regulations. Furthermore, the study highlights how regulatory actions in one jurisdiction can generate significant spillover effects across global financial markets.
Blockchain technology benefits companies in handling various use cases, including real estate, voting, fitness tracking, intellectual rights, the Internet of Things (IoTs), and vaccine distribution. Several technologies proposed in the literature seek to support businesses, enterprises, and state institutions in improving their operations and services, primarily in the financial sector. Although the existing technologies provide the needed service, the “trust” issue remains challenging. This differs from salary management in some state institutions in developing countries, such as Ghana. This paper presents a novel approach by implementing a permissioned blockchain-based system using Hyperledger Fabric integrated with RSA encryption to address the transparency, trust, and fraud challenges in salary-grade structure management. Unlike existing blockchain payroll applications, this work explicitly targets the salary grade adjustment processes within state institutions, providing a real-world prototype validated with actual agency data. In this paper, we implemented the blockchain technology for salary management. We use the Hyperledger Fabric platform to build a trusted platform to aid State Institution X (siX) in sharing data, validating transactions, securing data, and auditing transactions among its stakeholders— a prototype design aimed at reducing the wage bill and ensuring transparency in the public service payroll. The results showed that blockchain operations increased transparency in the payroll system among stakeholders by 100%. The application developed was secure and could track all the changes made by the relevant stakeholders in salary management.
This study investigates the impact of blockchain technology adoption on the financial performance of major Australian banks, specifically Commonwealth Bank, Westpac, and ANZ, from 2016 to 2023. Using a descriptive research design and secondary data from annual reports, financial performance was assessed through Return on Assets (ROA) and Return on Equity (ROE). The findings indicate a positive relationship between blockchain adoption and improved financial performance, suggesting gains in efficiency, cost management, and profitability. The study focuses on the Australian banking sector within its unique regulatory and market context. The originality of this research lies in its localized empirical approach, providing context-specific evidence of blockchain’s strategic contribution to financial performance in banking.
Blockchain technology is being increasingly deployed to store and process transactions and information in the global financial sector. Blockchain underpins cryptocurrencies such as Bitcoin and facilitates decentralized finance (DeFi), representing a paradigm shift in the global financial landscape, offering alternative solutions to traditional banking, and fostering financial inclusion. In developing economies such as Morocco, where a significant portion of the population remains unbanked, these digital financial innovations present both opportunities and challenges. This study examines the potential role of cryptocurrencies and DeFi in enhancing financial inclusion in Morocco, where cryptocurrencies have been banned since 2017. However, the public continues to use cryptocurrencies, circumventing restrictions, and the Moroccan Central Bank is now preparing to introduce new regulations to legalize their use within the country. In this context, this article analyses the potential of cryptocurrencies to mitigate barriers such as high transaction costs, restricted access to financial services in rural areas, and limited financial literacy in the country. The study pursues a mixed-methods approach, which combines a quantitative survey with qualitative expert interviews and adapts the Unified Theory of Acceptance and Use of Technology (UTAUT) model to the Moroccan context. The findings reveal that while cryptocurrencies offer cost-efficient financial transactions and improved accessibility, their adoption may be constrained by regulatory uncertainty, security risks, and technological limitations. The novelty of the article thus lies in its focus on the key mechanisms that influence the adoption of cryptocurrencies and their potential impact in a specific national context. In so doing, the study highlights the need for a structured regulatory framework, investment in digital infrastructure, and targeted financial literacy initiatives to optimize the potential role of cryptocurrencies in progressing financial inclusion in Morocco. This underscores the need for integrated models and guidelines for policymakers, financial institutions, and technology providers to ensure the responsible introduction of cryptocurrencies in developing world environments.
Purpose The present study investigates the various aspects, consequences and obstacles linked to the use of blockchain technology (BCT) within Iraq’s food supply chain (FSC). By identifying and analyzing these components, this study aims to fill the knowledge gap on BCT’s potential and practical implications in this context. Design/methodology/approach An exploratory qualitative approach was used, involving 21 in-depth interviews analyzed through thematic analysis using NVivo (v12). The study systematically examined BCT adoption’s drivers, impacts and challenges in the Iraqi FSC context. Findings Nine key factors influencing blockchain adoption were identified and categorized into three domains: technology, organization and environment. The study also identified five major impacts of blockchain on the FSC and highlighted key challenges, including interoperability issues, privacy concerns, infrastructure limitations and a lack of knowledge. Research limitations/implications The study’s limitations include the early stage of BCT adoption, which restricted access to organizations with extensive experience in blockchain implementation. The generalizability of the findings may be restricted by the research’s emphasis on a broad FSC context rather than specific product categories. In addition, the interviews were conducted online due to budget constraints, potentially affecting the depth of responses. Many participating organizations had either not fully implemented blockchain or had only recently initiated pilot projects, which could influence the reliability of their insights. Social implications The study’s findings offer practical guidance for improving the transparency and efficiency of the FSC in Iraq, potentially leading to better consumer trust and enhanced food security. Originality/value This study provides a pioneering analysis of BCT adoption within Iraq’s FSC, a topic that has been underexplored despite its significance. By focusing on Iraq, the research addresses the specific technological, organizational and environmental factors influencing BCT adoption in a region facing unique challenges like political instability, infrastructural deficiencies and environmental stresses. The study’s findings offer critical insights into how blockchain can improve transparency, efficiency and trust in Iraq’s FSC, thus enhancing overall food security and economic resilience.
Mustafa Raza Rabbani, Sabia Tabassum, Miklesh Prasad Yadav, Umar Nawaz Kayani
Purpose This study aims to explore and analyze time-varying linkages of Islamic equity indices with the Sukuk (Islamic bond) market index, Halal cryptocurrency and Shariah-compliant exchange traded fund (ETF). Design/methodology/approach To study the dynamic connectedness of constituent series, the daily adjusted closing price from December 31, 2019, to September 11, 2023, has been used. This period is taken considering the unprecedented COVID-19 and Russia–Ukraine tussle under study. Standard GARCH and E-GARCH models are used to forecast symmetrical and asymmetrical volatility. Further, dynamic conditional correlation (DCC)-GARCH and Diebold and Yilmaz (2012) connectedness models demystify the spillover among examined assets. Findings There is no spillover from Dow Jones Islamic Market (DJIM) to Taddawul Sukuk and Bond Market Index (TSBI) and X8X in the short run, while there is spillover in the long run. However, DJIM and HLALETF exhibit volatility spillover in long run and short run as well. Further, Diebold and Yilmaz (2012) reveals that DJIM is the highest receiver, and TSBI is the most diminutive receiver of the shock. On the other hand, HLAL-ETF is the highest transmitter, and TSBI stands out as the lowest transmitter to the network connection. Originality/value Following an extant literature review, and to their understanding, it’s a novel study that unfolds dynamic linkages among selected markets during two major global crises.
Important lessons which were drawn from the most recent GFC - notably, the growing need for accommodative policies (unconventional and conventional) to facilitate appropriate responses - given limited monetary policy spaces, the emergence, rise and evolution of private actors and their implications for monetary policies and financial stability. Even though the ramifications and consequences of the April 2nd Announcement are still unfolding, its immediate and devastating impacts on global stock markets across the world are already apparent. The immediate repercussions do not only embrace the turbulence and volatility currently being witnessed in stock markets and exchanges across the globe, but also its potential to partially or significantly impact trading relationships. Whilst its apparent and immediate impacts can be seen across global stock markets – with growing concerns of retaliatory measures, particularly by those countries impacted, the principal rationale behind the unprecedented announcement appears to have its origins and association with the manner in which current multilateral trade agreements are functioning and the dissatisfaction with current world trade dispute resolution mechanisms. Amongst other goals and objectives, this paper considers innovative possibilities - particularly those of distributed ledger technologies which constitute benefits which can be harnessed to enhance digital possibilities of the Fourth Industrial Revolution.
Purpose In recent years, traditional markets have been challenged by the emergence of cryptocurrencies, particularly when there are economic disruptions such as the COVID-19 pandemic. This paper examines the intricacies of financial dynamics during the COVID-19 crisis and explores their impact on traditional and cryptocurrency markets. In particular, we explore whether cryptocurrencies are a better safe haven of value than traditional financial markets during economic disruptions like that resulting from the COVID-19 pandemic. Design/methodology/approach This study examines the differential impacts of COVID-19 on cryptocurrency and traditional financial markets, utilising a robust difference-in-differences methodology to analyse market behaviours across two critical periods: before and after the pandemic was declared by the World Health Organization (WHO). This approach allows us to capture these markets’ distinct responses to a global economic shock, offering insights into their comparative resilience and volatility. The originality of our research lies in its comparative approach to an unprecedented global crisis, providing valuable insights into the dynamics of digital versus traditional assets under stress. Findings Our findings contribute to the academic discourse by revealing that, contrary to popular belief and compared to traditional assets, cryptocurrencies may not be a safe haven during crises and may begin to mimic traditional assets more closely during such periods. Originality/value This study enhances our understanding of asset behaviour during economic shocks and has significant implications for investors, policymakers and regulators as they navigate future financial crises.
Increasing demand for transparency in agri-food through customer expectation and regulatory imposition has fostered a swift adoption of blockchain technology. Demand for transparency is rising in the agri-food industry driven by consumer expectations and regulatory requirements, which has fast-tracked the adoption of blockchain technology. It creates innovative solutions to augment traceability and combat food deception, while also informing consumers about their origin. Blockchain is by nature trusted and immutable; thus, it is well suited for agri-food stock chains. Considering that the transactions on such supply chains have to be safe and transparent, the existing Smart contract technology based on Ethereum is being improved. Even if updating is difficult and disruptive, the topic of data migration and its users is growing more difficult. This has led most of the agri-food sector migration to Binance Smart Chain (BSC). BSC offers the benefits of confirmation times for transactions, a more efficient consensus mechanism, and thus better scalability. On the latter aspect, use of BSC will eventually ease the updation of smart contracts, thereby upgrading the entire speed and reliability of blockchain solutions for ensuring transparency and traceability in a supply chain.
Lin Wang, Zeng Yu, Yongshun Xu, Ming Chi · 5 authors
In the era of globalization, enhancing construction supply chain resilience (CSCR) has become essential. Traditional supply chains face issues like information asymmetry, trust deficits, and inefficiencies, weakening their resilience. Blockchain offers a solution by improving transparency, trust, and coordination, but its impact on CSCR remains unclear. This study addresses the gap by developing a moderated mediation model to explore how blockchain influences CSCR through supply chain integration and the moderating role of environmental uncertainty. Data from 310 senior managers in Chinese construction firms were analyzed using structural equation modeling. The results showed that blockchain significantly improves CSCR, mediated by operational, informational, and relational integration, particularly under high uncertainty environments. The findings highlight blockchain’s potential to strengthen CSCR and provide theoretical insights into its mechanisms, offering practical guidance for construction companies to enhance supply chain processes through blockchain implementation.
The cryptocurrency market has undergone unprecedented growth and transformation, driven by technological advancements, global crises, and shifts in financial paradigms. This thesis comprises three empirical studies that collectively enhance our understanding of diverse cryptocurrency types, namely Shariah-compliant cryptocurrencies, green cryptocurrencies, stablecoins (fiat-backed, gold-backed, crypto-backed), and traditional cryptocurrencies, during major global shocks (the COVID-19 pandemic, the Russia-Ukraine war, and the FTX exchange collapse), with a focus on their resilience, safe-haven properties, market connectedness, portfolio performance and stability.The first empirical chapter investigates the resilience and safe-haven characteristics of Shariah-compliant cryptocurrencies relative to conventional ones. Using wavelet coherence and DCC-GARCH, quantile, and threshold regressions as robustness, it reveals that Shariah-compliant cryptocurrencies offer superior short- and medium-term safe-haven properties, particularly during geopolitical turmoil. Portfolio optimisation demonstrates that these assets deliver higher risk-adjusted returns during shocks, underscoring their potential in crisis-resilient portfolio construction.The second empirical chapter analyses the dynamic connectedness of green and non-green cryptocurrencies with traditional and environmental assets during the COVID-19 pandemic and the Russia-Ukraine war. Using a TVP-VAR framework and three portfolio strategies, namely minimum variance, correlation, and connectedness, the study shows that green cryptocurrencies, despite heightened volatility during crises, enhance hedging effectiveness when combined with strategic assets such as carbon futures, gold, and energy commodities.The third empirical chapter evaluates the impact of the FTX collapse on the return and volatility of stablecoins and traditional cryptocurrencies using Difference-in-Differences and event study methods. The findings reveal that while stablecoins were more resilient than traditional cryptocurrencies, they were not immune to systemic shocks. Notably, gold- and crypto-backed stablecoins did not outperform fiat-backed ones during crises, underscoring the importance of liquidity and transparency over collateral type.Overall, this thesis provides novel empirical insights into the evolving cryptocurrency landscape, offering actionable implications for investors, regulators, and policymakers navigating digital assets in times of systemic stress.
The article is devoted to the study of cryptocurrency and its impact on the shadow economy. Transactions related to cryptocurrencies are anonymous, so it is very difficult to control them.It is cryptocurrencies that are used in the shadow economy, and this raises the problem of how to control transactions and what laws should be applied to regulate digital currency. The article analyzes the peculiarities of the cryptocurrency market, as well as the peculiarities of peer-to-peer payment systems such as Bitcoin, Namecoin, Litecoin, PPCoin, and Novacoin. The attitude to cryptocurrencies in the world is ambiguous; due to the pseudo-anonymity of cryptocurrencies, their use can be carried out through fraudulent schemes, in particular, financing the shadow sector - terrorism and drug trafficking. The author examines the possible interrelationships between cryptocurrencies and the shadow economy, highlights the main distinctive characteristics of cryptocurrencies and payment schemes using them, and analyzes the pros and cons of having competitive money in the country’s economic cycle.
Cryptocurrencies have emerged as a transformative force across various sectors of the global economy, particularly in financial markets, where they influence asset classes and market dynamics. In this context, Asia's leadership in both cryptocurrency adoption and Islamic finance provides a unique opportunity to assess whether Islamic stock markets outperform their conventional counterparts amid cryptocurrency volatility. This study employs advanced econometric techniques, including panel unit root tests, Johansen-Fisher cointegration, pairwise Granger causality tests, and regression analysis, to empirically examine the influence of cryptocurrencies on the performance of Islamic and conventional stocks. Weekly data from 13 Asian countries spanning 2016–2019 are analyzed, with a focus on two distinct periods: before and after the 2017–2018 cryptocurrency crash. The findings reveal bidirectional significant causality between conventional stock returns and cryptocurrency returns. In contrast, Islamic stock returns exhibit a unidirectional influence on cryptocurrency prices, with no reciprocal effect observed across all panels. The findings indicate that during both overall and pre-crash periods, cryptocurrency returns positively affect Islamic and conventional stock markets, with Islamic indices experiencing a stronger impact. However, post-crash, both conventional and Islamic stocks suffer negative consequences from cryptocurrency fluctuations, with conventional stocks experiencing more pronounced losses, while Islamic stocks display greater resilience. This suggests that investor sentiment and risk appetite in Islamic markets differ from those in conventional markets, particularly during periods of cryptocurrency instability. Overall, our findings indicate that rising cryptocurrency returns, especially post-crash, may divert investors from stock markets across Asia, with conventional markets being more affected than Islamic markets. The study offers valuable insights for investors, policymakers, and regulators, emphasizing that conventional stock market investors face greater exposure to cryptocurrency risks. It advocates for the implementation of robust policies to mitigate these risks and recommends expanding future research to encompass other regions and incorporate additional control variables.
Blockchain technology, though conceptualized in the early 1990s, only gained practical relevance with Bitcoin's launch in 2009. Recent advancements have demonstrated its transformative potential, particularly in the digital art and global payment sectors. Non-fungible tokens (NFTs) have redefined digital ownership, while financial institutions use blockchain to enhance cross-border transactions, reducing costs and settlement times. Using the Diamond-Mortensen-Pissarides (DMP) model, this paper examines blockchain's impact on labor markets by improving job-matching efficiency, thereby reducing unemployment. However, high research costs and competition with incumbent technologies hinder early-stage blockchain adoption. We extend the DMP model to analyze the role of government intervention through tax and wage policies in mitigating these barriers. Our findings suggest that lowering firm tax rates can accelerate blockchain innovation, enhance labor market efficiency, and promote employment growth, highlighting the critical balance between technological progress and economic policy in fostering blockchain-driven economic transformation.