Banking in the Shadow of Bitcoin? The Institutional Adoption of Cryptocurrencies

Crypto-asset market development: the role of country’s institutional quality

“…These imply that institutional quality that supports the development of financial markets, such as the quality of law and investor protection, is not the precondition for the development of the crypto-asset market. We can state that crypto investors prefer "shadow" financial systems (Auer et al, 2022) rather than regulated ones. All results for the institutional quality indicate the greater need for regulating the crypto-asset market and developing international approaches to enhance trading transparency.…”

“…Consequently, investors are willing to pay higher prices for Bitcoin in countries with higher corruption (Brown, 2016;Johnson, 2020). Moreover, research finds that substantial banking activity is directed at lightly regulated crypto exchanges and that retail and institutional participants also widely use a "shadow crypto financial system" (Auer et al, 2022). These results imply that crypto exchanges are poorly regulated in such countries and provide an excellent way to hide illegal activities, other transactions linked to corruption and other illicit activities such as money laundering.…”

Compliant or not compliant? The challenges of anti-money laundering regulations in crypto assets: the case of Switzerland

“…While some proponents argue that crypto assets have a positive impact on financial inclusion by providing individuals with the opportunity to participate in the global economy without the need for a traditional bank account, offering low transaction fees and ensuring privacy in online transactions (Auer et al , 2022; Brenig et al , 2015; Kapis, 2021; Moy and Carlson, 2021; Qureshi and Xiong, 2018), critics contend that the lack of central oversight leads to financial crime, that the volatility of certain crypto assets can do more harm than good and that the necessary internet access and technology needed may not be available in certain countries (Adrian and Weeks-Brown, 2021; Vazquez, 2022).…”

Tren Investasi Aset Digital: Studi tentang Perilaku Investor Muda terhadap Cryptocurrency di Tengah Perubahan Pasar Keuangan di Kota Bandung

“…Bitcoin, yang diperkenalkan pada tahun 2009, mengalami volatilitas harga yang signifikan dan minat spekulatif pada tahun-tahun awalnya (Ai & Yao, 2021). Seiring berjalannya waktu, Bitcoin telah mendapatkan penerimaan di kalangan investor institusional dan telah diintegrasikan ke dalam sistem keuangan tradisional melalui produk-produk seperti Bitcoin futures (Auer et al, 2023). Ethereum, yang diperkenalkan pada tahun 2015, memperluas kemampuan teknologi blockchain dengan memungkinkan kontrak pintar dan aplikasi terdesentralisasi (DApps) (Teo, 2021).…”