This chapter begins by addressing the food, energy, and water trilemma. A critique of the impact of neoliberalism that traces the transition from industrial to financial capitalism follows. The trade-off arising from improvements in living standards and environmental impact is then explored. In a context where socioeconomic and cultural differences result in conflicting views of what is virtuous, there is a problem of trust. The central proposition is that a new frame grounded in New Institutional Economics (NIE) is required. Fintech and distributed ledger technology (DLT) offer a unique way of building the essential institutional infrastructure required to overcome the problem of trust. Examples showing how fintech can address climate change follow. Whilst these initiatives are to be applauded, new international institutional infrastructure is required to enable fintech to realise its potential. Examples of future possibilities are presented. The chapter concludes by making the case for a new paradigm that prioritises international cooperation because unrestrained competition will lead to rising temperatures, mass migrations, and the collapse of civilisation as we know it.
Financial technologies (FinTech) and decentralized finance (DeFi) are revolutionizing traditional banking services, a trend that has accelerated during the COVID-19 pandemic. Understanding their impact on sustainable development goals (SDGs) is essential as these technologies influence core financial services. Research indicates FinTech companies in developed and developing countries play crucial roles in addressing challenges like poverty, financial inclusion, and environmental sustainability, contributing significantly to SDGs. This chapter offers a comprehensive bibliometric review of FinTech, DeFi, and SDGs, mapping the research evolution, identifying key contributors, and underscoring emerging trends. It fills a gap in the literature by systematically analyzing FinTech and DeFi's role in achieving SDGs, providing insights for stakeholders navigating these intersecting domains.
This study examined the money transfer service, mobile loan service, remittance service and how they contribute to the financial inclusion in Musanze district. The study used a descriptive research design to investigate the relationship between digital financial services and financial inclusion Musanze district, Rwanda. This study adopted a mixed approach, as both quantitative and qualitative techniques were used. The population of the study were adult inhabitants of Musanze District, i.e., those with a national identity card, which is a prerequisite for opening a mobile money account. The primary data were collected using questionnaire and interview guides. The questionnaire findings on the first specific objective gave a mean score was 4.04 (std = 1.069) indicating that the respondents highly agreed that money transfer services contribute to financial inclusion and with very low divergence. On the second objective, the overall mean was 3.94 (std=1.00) showing that there was general agreement among respondents on the fact that mobile loan services contribute to financial inclusion. On the third specific objective, an overall mean of 4.24 (std=0.82) was obtained indicating that most of the respondents agreed that remittance services contribute to financial inclusion. The regression was fairly fit with an R2 = 0.597, implying that digital financial services, namely money transfer services, mobile loan services, and remittance services increase financial inclusion in Rwanda by 59.7%. As per the ANOVA analysis, the regression model (F = 186.821, p = 0.001) was proved to be statistically significant since the p-value was less than the 5% threshold. All the three null hypotheses were rejected at 5% level of significance. This implied that money transfer services, mobile loan services, and remittance services significantly contribute to financial inclusion in Rwanda. From the interview session, the respondents unanimously agreed that digital financial services (DFS) like money transfer, mobile loans, and remittances are the primary drivers of financial inclusion in Musanze District by decentralizing services and creating jobs for agents. Most emphasized the role of mobile money and banking agents in bringing services closer, increasing usage through easy access, although income was cited as a key factor for transacting. Financial literacy and low, seasonal incomes from agriculture were identified as major barriers, with people reluctant to join formal finance due to a cash-at-home mindset and financial inactivity when income is low. The study recommends that mobile financial service providers should enhance the security of their platforms and improve customer support to attract more users. The study also recommends that the regulatory bodies to provide guidelines and rules to be used in the use of telephones as tools for financial services. Keywords: Contribution, digital, financial services and financial inclusion, Rwanda
Since the Global Financial Crisis (GFC) in 2007 two important outcomes have affected banking development. The first refers to the launching of Bitcoin and distributed ledger technology that opened the doors to decentralized finance (DeFi), and thereby threatening to disintermediate banks in the banking value chain, while the second one relates to the increased visibility of the phenomenon of sustainable banking that highlights the importance of environmental awareness, social responsibility, transparency, and accountability. Even though these two outcomes may seem to lead banking development into divergent pathways, one might ask can the fintech companies contribute to building a more inclusive, resilient, and sustainable banking system. The aim of this research paper is to explore the intersection of fintech and sustainable banking by analyzing its purpose, fintech development and its role as a facilitator in the sustainable banking and, finally, by finding the intersection between them.
This study’s goal is to empirically research the global dynamics of cryptocurrency adoption, with a particular focus on the impact of financial technology (FinTech) breakthroughs on the evolution, acceptability, and integration of digital currencies within the broader financial landscape. This study takes a mixed-methods approach, combining quantitative analysis of global cryptocurrency statistics with qualitative insights from stakeholder interviews. Case studies and a comprehensive literature study help to contextualize FinTech’s impact on the global evolution of digital currencies. This study emphasizes the various drivers driving Bitcoin adoption globally, with FinTech advances at the forefront. Regulatory clarity, technology developments, and changing customer behaviour all influence the trajectory of digital currencies, emphasizing the importance of adaptive methods and collaborative efforts to properly traverse this dynamic field.
Purpose In the evolving landscape of global remittances, this study systematically explores cryptocurrency's transformative impact on remittance services through a comprehensive literature review and bibliometric analysis. Design/methodology/approach Through meticulous PRISMA-guided analysis, the research identifies cryptocurrency technology as a pivotal force in enhancing remittance efficiency, reducing costs and broadening access contributing significantly to financial inclusion. Findings Findings revealed that cryptocurrency technology could significantly enhance remittance services, offering improved efficiency, reduced costs and increased accessibility. This suggests a transformative potential for financial inclusion, presenting a compelling case for broader adoption and regulatory support to leverage these benefits effectively. Research limitations/implications By integrating recent research, this work underlines the urgent need for broader adoption and regulatory support to leverage these benefits effectively. It offers novel insights for institutions and policymakers, highlighting the potential for technology adoption in remittances to enhance financial inclusivity. Originality/value More cryptocurrency studies are needed to concentrate on remittance markets. Thus, this investigation constitutes a unique addition to the field. Additional investigation in this domain presents significant possibilities for future exploration and progress.
Based on China's provincial panel data from 2011 to 2020, this paper empirically analyzes the impact of digital financial inclusion(DFI) on regional energy consumption(ECI) using two-way fixed effects model, panel threshold effects model and instrumental variables regression. The results show that, firstly, DFI`s development has an obvious inhibitory effect on the intensity of regional energy consumption. Meanwhile, the heterogeneity analysis finds that there are obvious regional differences, differences in the degree of financial agglomeration and differences in their own dimensions in the inhibitory effect of DFI on regional energy consumption. Specifically, the energy-saving effect of digital finance is more obvious in the western region of China, in regions with a lower degree of financial agglomeration, and the strongest inhibitory effect is the breadth of digital inclusion coverage. In addition, the threshold effect analysis shows that the energy-saving effect of DFI not only increases with DFI`s development, but also exists in a non-linear pattern of significant "marginal increment" as the degree of economic decentralization increases. To this end, China should make greater efforts to develop DFI and optimize its industrial structure; formulate differentiated development policies that take into account the resource endowment, industrial structure and technological level of each region; and improve its macroeconomic governance system by taking into account the level of DFI`s development in the region, as well as the power of financial decision-making and financial management..
CBDCs are a digital form of fiat money. CBDCs raise a number of challenges in terms of payments’ privacy. CBDCs may be implemented in two models (wholesale and retail). CBDCs may be used on a cross-border basis, subject to the connectivity of the technology. Cross-border use of some countries’ CBDCs could even bring about, under certain conditions, a shift in geopolitical power, especially if challenger currencies were to eventually lead to a replacement of the USD as the global reserve currency. As regards the key question about the interoperability of CBDC systems with private payment networks, the answer relies on the choice of technology and the location of the CBDC’s ledger, that is within or outside of existing Central Bank clearing and payment systems. CBDCs could transform the way modern societies conduct payments and handle money. Possible challenges that CBDCs raise in connection to monetary policy and financial stability will likely be manageable. Any financial stability issues that remunerated CBDCs might raise, in the sense that they might be in competition with bank deposits, could arguably be dealt with by setting the interest rate that remunerated CBDCs might attract at a level that is not competitive with bank deposits. Similarly, CBDCs are not expected to raise issues with respect to monetary policy and money circulation since essentially CBDCs will act as a replacement of fiat money, albeit in a digital rather than physical form. CBDCs are going to be a completely different form of digital currency than cryptocurrencies, both in terms of technology and in the fact that there will be a centralized state issuer rather than a private one. They will not be volatile as cryptocurrencies, but whether they would be a stable store of value will depend on the state of foreign exchange (FX) markets and exchange rates set by those markets. Cybersecurity safeguards will prove indispensable to building the public’s trust in CBDCs; if money goes missing from the system due to a cyber-heist, then that would undermine consumer confidence in the CBDC system. Thus, strong cybersecurity safeguards will prove indispensable to building the public’s trust in CBDCs. CBDCs will have to be handled through a system that is not excessively energy hungry in contrast with cryptocurrency operations. CBDCs are meant to be inclusive, and not exclude the digitally handicapped part of the population. Cross-border use of CBDCs could herald a new era of seamless, faster, and cheaper cross-border payments. English property law has accommodated crypto assets as a distinct form of personal property; thus the right approach is that CBDCs is that CBDCs will readily be accommodated in English law as a digital version of fiat currency. Several major Central Banks around the world have announced plans to develop a Central Bank Digital Currency (CBDC). The development of CBDCs may be seen as an assertion of monetary sovereignty—perhaps the last chance to do so in the face of technological change—but also raises several socio-economic challenges. This article critically explores these issues, including the configuration of a CBDC system, depending on the level of involvement allowed for the commercial banking sector, with reference to the policy papers issued by global regulatory bodies (eg, the Bank for International Settlements (BIS) and International Monetary Fund (IMF)). It also touches on the utility of different technologies mooted by central banks and their impact on the preservation of consumer privacy. This article postulates that CBDCs, rather than merely heralding the return of the state in the realm of money and payments, constitute a final frontier in the field of digital money and digital payments.1 It is also arguable that any monetary policy and financial stability challenges that CBDCs might pose would be manageable through the appropriate use of interest rates and internally imposed caps on deposits and withdrawals. The digitization of international payments opens the window for uniformity of the means of exchange that may be used for international payments. The use of CBDCs on a cross-border basis is mostly an issue of technological connectivity, which is yet an unresolved, and difficult to resolve, matter. If connectivity is ensured, leading to widespread cross-border use of CBDCs, this could give rise to strong competition between countries to promote their own CBDCs and will signal a new era of faster and seamless cross-border payments. This could possibly lead to lower transaction costs for cross-border payments, which in turn would make migrant labour remittances to their home country much cheaper, adding serious social value to the cross-border use of CBDCs. Given that CBDCs will have an exchange rate of one equals one, vis-à-vis the underlying currencies adopting a foreign CBDC would be tantamount to currency substitution; in fact, several countries around the world have experimented with dollarization, namely the replacement of their local currency with the USD. The experiment was mostly carried out in countries with weak national currencies with mixed results, for example, in Zimbabwe and Venezuela the experiment resulted in relative price stability and ensuring control of rampant inflation, especially with regard to food. On the other hand, in other cases,2 the adoption of a foreign currency has led to further weakening of the exchange parity of the national currency reinforcing the cycle of instability for the local economy, since local savers rushed to turn their savings in local currency to the newly adopted foreign currency. At the same time, the use of national CBDCs on a cross-border basis opens a window of opportunity for emerging economies such as China to promote the use of their CBDCs in international payments. Such a development would arguably, in the long run, enable the currencies of those countries to challenge the USD or edge away the USD from its long-entrenched position as the global reserve currency, thus enabling countries issuing CBDCs that are used on a cross-border basis to mount a gradual assault on the USA’s global financial hegemony. Here it should be mentioned that China has expressed the ambition to replace the USD as a global reserve currency through the cross-border use of the digital Renminbi (RMB); an obstacle is that the currency is not freely convertible; either way, such a development could possibly lead to the radical transformation of current global monetary arrangements.3 The main part of this article is structured into four sections, in addition to this introduction and the conclusion. Section 2 provides a critical evaluation of the rationales for the development of CBDCs. Section 3 addresses the requirements and implications of the possible use of CBDCs on a cross-border basis, as well as the formidable obstacles that these would face. Section 4 covers some of the legal and economic aspects of CBDCs (including the impact of CBDCs on both financial stability and monetary policy) as well as the possible impact of remunerated (interest-bearing) CBDCs. Section 5 examines the key properties of different configurations of CBDC systems and discusses the ramifications of the different CBDC architectures and technology models that may be employed by central banks. Section 6 brings the different strands of the analysis contained within this article to a conclusion. This raises a question that seemed to have been settled by the fact that central banks normally exercise monetary policy through the balances of commercial banks, allowing thus the multiplication of private money in the economy. The idea of CBDCs constitutes a response to the recent trend of the increasing digitization of money and privatization of payments. Among the discussed benefits of CBDCs is better financial inclusion,4 especially in countries where it is expensive to have access to a commercial bank branch network, for example island states like The Bahamas5 and other states facing similar challenges in terms of logistics. It has to be noted here that some commentators are not convinced about the benefits of CBDCs, for example, the House of Lords issued a report on the Bank of England’s plans for a CBDC with the title CBDCs: A Solution in Search of a Problem?6 However, this may be unduly negative. Depending on the type of technology, central banks are likely to proceed with the development and/or the issuance and circulation of CBDCs, and technical solutions that can help with the preservation of privacy of citizens’ payment information.7 Notwithstanding, in a number of countries including Singapore,8 CBDCs have not progressed as fast as expected. The advent of digitization of money and payments has mostly been dominated by private sector operators and has given rise to a number of challenges for public policymakers, including identifying ways to secure universal and affordable access to private payment networks, and the protection of consumers from cryptocurrency scams. To these challenges, states have not reacted in expected ways, namely through the introduction of a heavier form of regulation of cryptocurrency markets and private payment system providers, but rather through the introduction of a competing form of digital currency and payment system. The key rationales for the introduction of CBDCs have been summarized by the Bank of International Settlements.9 These are payments finality, countering the market power of private providers of payment systems; making innovation work for all citizens and also to secure uninterrupted consumer access to payment systems.10 A number of other rationales are included in the European Central Bank’s paper on a digital Euro.11 These include the provision of a further boost for the digitization of the economy and to safeguard financial inclusion and to lower transaction costs, for example to access private payment systems.12 A final rationale includes the ambition to provide a stable digital currency to act as an anchor for the placement of citizens’ savings (eg, without having to pay access fees to use a digital payment system). The physical handling of money and the conduct of payments have drastically changed in the current era. Payments on the one hand have been fully digitized and dominated by private sector payment system providers like the Visa and MasterCard networks. These developments alongside the emerging challenge of cryptocurrencies and the distinct shortcomings of cryptocurrency markets (including grossly excessive volatility) have mounted a massive challenge with respect to citizens’ payments and money circulation, namely the tight control of monetary policy by the state. Another major challenge has been citizens’ access to digital payment systems. The weaknesses of cryptocurrency markets and obstacles (eg, transaction costs) to access to the wider public and obstacles placed on the access of wider public to private payment systems have amounted to a form of market failure. These market failures have necessitated the introduction of public regulation, and in the of such regulation, several states and central banks around the world have for the development of competing digital currencies and payment this by the state. The introduction of CBDCs will the about whether money is a public in the sense that a number of in the economy such as payments and financial should be in the public The and of international payments, for example, migrant remittances and international a window of opportunity for the possible cross-border use of CBDCs. Cross-border use of CBDCs could lead to a new era of seamless international payments. The in which and handle money and conduct payments has changed in The of the digitization of money and payments has a window of opportunity for the development of CBDCs for cross-border use in countries with a strong economy. China is the country that has so expressed an ambition for different countries to use its CBDC as a means of exchange in international payments, the to in international through the possible replacement of the USD as a global reserve currency by the digital in the or The for the development of cross-border CBDCs is connectivity in terms of technology between payments systems in different A further and challenge to energy and which also around system and of the adoption of a digital currency by a country other than the issuing countries adopting CBDC are the issuing interest rates and exchange rates exchange rates normally a in terms of international and thus have an impact on the issuing of payments, that is of and the use of CBDC with respect to the adopting international payments would lead to the by the adopting country of the interest and exchange rates policy by the issuing country given that exchange rates can the of and might in the adopting economic that is to the of their economy. On the other hand, the of a CBDC can benefits to the issuing country including increasing the of its national currency and leading to the of title between the issuing and adopting on the question of whether CBDCs will make cross-border payments and cheaper, much will depend on the central so that they the connectivity of their systems and of cross-border legal question in this would be whether both the issuing and the adopting and on would to cross-border of CBDCs. This question could be by at the of in private international law (eg, the with cross-border of digital and with reference to cross-border of digital The of the in this may depend on where the CBDC or where the central bank that the are CBDCs will a form of money, if they the of money, which to the The as a means of The as a store of The as a of The are the properties to money by central banks and international financial regulatory Given that CBDCs are likely to be as fiat money, albeit in a digital it is within the of the issuing state to CBDCs as legal CBDCs used by the public will the for the of money by the to money. CBDCs can as money which cryptocurrencies do if CBDCs are also as legal by certain this way they will also the requirements set out by the approach to the of state money. It should be noted here that cryptocurrencies do not into either CBDCs, will both the and of money. The idea of Central CBDC to be the answer of and central banks to the recent around money, payments and in CBDCs are digital form of fiat money. has been a of about CBDCs around the and papers by major central banks such as the the European Central the Bank of as well as those in and but there is the of CBDCs. The way to approach CBDCs is to as digital fiat money distinct from and thus states can CBDCs as their legal The main in this is that CBDCs may or a on commercial banks on the of of bank deposits in for savers to their money into CBDC that are central banks can a on the of CBDC that an can and banks in could the that an may at a in These would the of a of bank deposits. much will depend on whether CBDCs with interest rates at or at a level to with savings If interest is at the rate to remunerated CBDCs could be so that it not with commercial savings other this is CBDCs could lead to a of monetary that not that they would lead to an in interest The of digital has mounted a challenge to control of the money CBDCs raise the question of whether they would the of money in circulation, thus leading to inflation, this mostly to CBDCs, which could CBDCs will be than a or replacement of fiat money in circulation, it that they will lead to leading to inflation, or have an impact on the existing of money in circulation in the question is as to the of commercial banks and private payment systems in the use of CBDCs. As regards the question of whether the CBDC will be in the form of a or in the form of an of the central banks that they will be and will be used in a way, not on a technology like terms of the choice between an and a there is in of but it has been by an of that central banks can issue or CBDCs in if they have the to issue and in the of CBDCs, it should be that it would be difficult to payment and finality, in the of CBDCs in the of a centralized payment and even if the CBDC system is not on technology payment and are much in the of CBDCs. The of in this is to payment but that with serious in a market with payment it is to the of CBDCs will be for payments in the from the fact that they may be an for and central banks to their way into control of money and payments in an economy, and in the exercise of monetary CBDC systems could in be as or systems. 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If commercial banks are part of the system, then it would be commercial banks which will out the and the and with regulatory to the different requirements to money and payments. 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Another major challenge to the interoperability with private payment networks, for example, commercial bank The answer to this challenge may be in the form of an between the CBDC and the where central banks the balances with commercial banks. on it could be that CBDCs can be a way for the state to in terms of payments and money and payment systems to all as CBDCs can access to payment systems and financial to without bank as systems are not to use for CBDC and payments even systems can safeguard their and level of would make to to the privacy of citizens’ payments. The preservation of privacy on the type of technology which will be used for the and of CBDCs, for example use of central systems would all about citizens’ payments to the central bank and any state are technical solutions to secure the privacy of on systems such as at this it be noted that major central banks have that they will not use a system for their CBDCs. 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The of the CBDC the answer to the question whether the CBDC will be with the of the banking sector or will also prove critical in terms of citizens’ and To citizens’ this will that the CBDC system would have a and that for such a and other issues, do not have an on is also mentioned as one of the in for the development of a digital and some other cryptocurrencies have in this respect which should and are not is which to the global economy should be allowed to to global CBDCs are the final frontier in increasing digitization of money and payments and the gradual of in the physical and in reinforcing the use of fiat money by the wider They also to be the last chance for state to monetary as of money and payments in national it would be in the for CBDCs to fully currency in a physical form. The is that money in a physical form has a distinct in terms of of for example, in that it not exclude the digitally The is that in of an such as a of technology, or an act of such as a physical or such as currency in the physical form can as a and possibly critical the development of CBDCs challenges which to some have been in this which has also to possible to the key CBDCs of the challenges that these raise like cross-border connectivity is certain is that the of CBDC systems will have a impact on payments and the provision of money in the economy and may have an impact on the of banking systems. of the challenges with CBDCs can through the type of technology that will be Given the challenges vis-à-vis the adoption of CBDCs, an international such as the should further on these challenges could be the adoption of CBDCs the including a form of technology to cross-border connectivity between different national central bank CBDC systems. However, it if a CBDCs to and the digital in money and payments would be Given competition from the private sector, the return of the state in the realm of money and of payment systems may prove to be with To in the the of money was the of central banks, and CBDCs may be a way to that in CBDCs may prove to be the last frontier for money and payments in the of the and have the not the bring about a radical transformation in the way that payments are and money is handled in This article is an and version of a paper to a on the of and at at the for of on this have several in to of the of the of of the and at the European Central for their and
Over the past three decades, scholars have studied technology adoption and its determinants in many contexts. Nevertheless, this literature has remained silent in understanding the complex interdependency among these determinants and how such interdependency determines technology adoption. In this paper, we build on previous research to focus on the technological, social, economic, cultural, and political determinants of technology adoption. Using the Fuzzy-set Qualitative Comparative Analysis (FsQCA) with samples of 101 and 43 countries, we perform a configurational analysis to explore the interdependency among these five categories of factors and their causal effect on the adoption of cryptocurrency and decentralized finance (DeFi). We obtain various causal combinations of the technological, social, economic, cultural, and political factors that are associated with a high level of cryptocurrency and DeFi adoption. In addition, our analysis highlights the key role of the social, economic, and cultural factors in influencing both crypto and DeFi adoption. Technological and political factors, nevertheless, play a less important role in driving blockchain adoption. We also find intriguing differences between cryptocurrency and DeFi adoption. Our results both support and challenge existing findings in the technology adoption literature and offer theoretical implications for future research.
Central Bank Digital Currency (CBDC) is a digital revolutionary idea built on distributed ledger and smart contracts systems. With the introduction of virtual currency, central banks are no longer limited to accepting cash as payment. Along with many benefits of CBDCs, technological, social, and economic obstacles impede its execution. This research aims to provide insight into the development of CBDCs, how they serve in the payment, and hinder their adoption through bibliometric and content analysis. Applying a mixed-method approach, this study first underscored the yearly publication trends, prominent journals, and documents. Moreover, the qualitative technique provides insights into prevailing literature themes, ensuring a thorough understanding of the topic.
Traditional banking systems were significantly disrupted by the advent of digital currencies, most notably cryptocurrencies like Bitcoin and Ethereum, which have provided alternative ways of conducting transactions and storing value. Among other aspects, this research paper explores the far-reaching effects that digital currencies have had on traditional banking including disintermediation, payment systems, cross-border transactions and risk management. Besides, the paper examines the regulatory challenges posed by digital currencies through presenting different case studies from various jurisdictions and it also analyzes the technological integration of blockchain as well as distributed ledger technologies within mainstream banks’ frameworks. The next section discusses broader economic implications such as financial stability, monetary policy and consumer behavior. In addition, future prospects and challenges are looked at with strategic recommendations being given for traditional banks to transform themselves in order to survive under a changing financial landscape. Therefore this full analysis seeks to provide an understanding of how digital currencies can be transformational while suggesting a path for guiding old banks through new era of financial innovation.
Academic research on cryptos has exploded over the past decade; however, the impact of cryptocurrency on inflation in emerging markets is an underexplored research area. This study addresses this by investigating the impact of two major cryptocurrencies - Bitcoin and Ethereum, on inflation in four major emerging countries - Brazil, India, China and South Africa (BICS). Monthly data on cryptocurrencies and inflation (WPI and CPI) is taken from Oct 2017 to Nov 2022. The Vector Auto-Regression (VAR) findings indicate that in BICS countries, there is no significant impact of cryptocurrencies - Bitcoin and Ethereum on the inflation of BICS. The results of this study can be useful for policymakers regarding inflation management and the risks and challenges associated with cryptocurrency adoption.
In this paper, we review the benefits and challenges of cryptocurrencies, the decentralized digital money and assets, on the financial system.Afterward, we apply the simple and linear "Transfer Function (Autoregressive distribution Lag Model, ARDL) to examine the effects of selected cryptocurrencies on financial system with specific focus on the foreign exchange market, capital market and the money market in Nigeria.We propose a linear ARDL method to demonstrate how the volatilities in the prices and transaction volumes of Bitcoin.The result shows that the treasury bill transaction amount is explained by its own past, as well as other considered variables.A 1% increase in bitcoin price would result in 0.004% decrease in the volume of transaction of the treasury bill.Also, a 1% increase in bitcoin traded transaction will result in a 0.096% decrease in the money market treasury bill.Regarding the treasury bill rates, the result identified that the treasury bill rate is also explain by own past and other considered variables.A 1% t increase in bitcoin price would result in 0.059% decrease in the treasury bill rates.Lastly, bitcoin volume would result in significant decrease in treasury bills rates in line with expectation.A 1% increase in bitcoin traded transaction will result in a 0.039% decrease in treasury bill rates.Thus, the study contributes to the existing literature by providing how the financial transactions in the cryptocurrency market are drives price discovering in the financial markets in Nigeria.The findings open room for future research since the study is limited to only few financial markets in Nigeria.
FinTech has successfully challenged the established finance landscape and diversified its entry into socio-economic and sustainable platforms. On the contrary, it poses significant security, legislative, and law enforcement issues and may amplify the potential for fierce rivalry in the financial system. This study has identified four broader applications of FinTech that drive widespread FinTech adoption: banking, financial inclusion, regulation, and sustainability. The paperhas discussed the multifaceted impact of FinTech, analyzed current technologies, and trends shaping FinTech and examined the policy implications in each of the keyareas. We explored research articles and employed a narrative perspective. FinTech has broken down barriers for marginalized, unbanked populations through more accessible digital credit and leveraged the technological infrastructure for a smooth transition to a low-carbon economy. Adopting innovative technologies such as crowdfunding, big data analytics, blockchain, and artificial intelligence have established strategic decentralization and sped up ecological transition. However, since unregulated FinTech use can worsen existing financial problems and create more information asymmetry, establishing a regulatory framework with proper supervision that prioritizes client interests, data privacy, and risk management is crucial. As more and more financial institutions embrace the digital revolution, we anticipate a lot of positive outcomes, such as balanced regulation, an improved sustainable financing environment, and greater access to financial services for everyone.
Sound financial management will affect regional progress.Local governments must explore the potential to increase regional financial resources so that financial performance increases and encourages economic growth, improves the human development index, and reduces poverty.This study examines the effect of financial performance on capital expenditure, economic growth, human development index, and poverty.The study used a quantitative approach with path analysis, using secondary data on city/district government finances in Banten Province in 2018-2022.The study's financial performance results significantly affect economic growth as measured by the independence, effectiveness, fiscal decentralization, and dependency ratios.Financial performance, as measured by the independence ratio, effectiveness ratio, fiscal decentralization ratio, and dependency ratio, has an influence and is not significant on poverty.Financial performance, as measured by the independence ratio, effectiveness ratio, fiscal decentralization ratio, and dependency ratio, has an impact and is not significant on the human development index.Capital expenditure significantly influences financial performance measured by the independence ratio, effectiveness ratio, fiscal decentralization ratio, and dependency ratio on economic growth.It has a significant impact on mediating the human development index.Capital expenditure does not significantly judge financial performance as measured by the independence ratio, effectiveness ratio, fiscal decentralization ratio, and dependency ratio to poverty.Economic growth has no significant effect on mediating finance as measured by the independence, effectiveness, fiscal decentralization, and poverty dependency ratios.The human development index does not significantly mediate finance measured by autonomy, energy, fiscal decentralization, and dependency on poverty ratios.