T H E I M PA C T O F D I G I TA L C U R R E N C Y

(CRYPTOCURRENCY) ON
FINANCE AND BANKS

B Y- A P O O RVA
 INTRODUCTION

WHAT IS CRYPTOCURRENCY ?
Cryptocurrency is a type of digital or virtual currency that uses cryptography for security
and operates independently of a central authority, such as a government or bank. It
utilizes decentralized technology called blockchain.

Bitcoin, created in 2009 by an anonymous person or group using the

pseudonym Satoshi Nakamoto, was the first decentralized cryptocurrency
and remains the most well-known and widely used.
Introduction
Objective

Methodology

Findings

Conclusion
 • This study aims to explore the impact of cryptocurrencies
on traditional finance and banking systems. It seeks to
understand how these digital assets are reshaping
financial landscapes, challenging established norms, and
potentially revolutionizing the way we perceive and
engage with money.

INTRODUCTION
•The primary objective of this study is to analyze the
various effects of digital currency adoption on finance
and banking.
•Assess the implications of cryptocurrencies on traditional
financial institutions, including banks and regulatory bodies.
•Investigate the potential benefits and risks associated with
the widespread use of digital currencies.
•Explore how the emergence of decentralized finance (DeFi)
platforms is altering traditional banking services and
practices.
•Examine the regulatory challenges and responses from
governments and financial authorities in adapting to the rise
of cryptocurrencies.
• This research employs a mixed-method approach, combining
both qualitative and quantitative techniques to achieve
comprehensive insights into the subject matter. The
methodology includes,
1. Literature Review: A thorough review of existing academic research,
industry reports, and relevant publications to establish a foundational
understanding of the topic.
2. Case Studies: Examination of real-world case studies and examples
showcasing the impact of digital currencies on finance and banking.
3. Surveys and Interviews: Gathering perspectives from industry experts,
policymakers, financial professionals, and cryptocurrency users to capture
diverse viewpoints and experiences.
4. Data Analysis: Utilization of statistical analysis and data visualization
techniques to interpret quantitative data and identify trends.
• The findings of this study reveal several key insights into the
impact of digital currency on finance and banks ,
1.Disruption of Traditional Banking: Cryptocurrencies challenge the
role of traditional banks by offering alternative financial services
such as peer-to-peer lending, decentralized exchanges, and
automated lending protocols.
2.Regulatory Challenges: The regulatory landscape surrounding
cryptocurrencies is complex and evolving, with authorities striving
to balance innovation and consumer protection.
3.Volatility and Risk: The inherent volatility of cryptocurrencies
poses risks for investors and financial stability, necessitating risk
management strategies and regulatory oversight.
• The adoption of digital currency, particularly cryptocurrencies, is reshaping the financial
industry and challenging traditional banking paradigms. While offering opportunities for
innovation and financial inclusion, it also presents regulatory, security, and stability concerns
that must be addressed. The future impact of digital currencies on finance and banks will depend
on the ability of stakeholders to navigate these challenges effectively while harnessing the
transformative potential of this emerging technology.