Does Bitcoin Affect Term Deposits? Evidence from MINT Countries

Baş Tuğba (), Özaydın Orhan () and Dura Yahya Can ()
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Baş Tuğba: Faculty of Economics, Administrative and Social Sciences, Istanbul Nisantasi University, Istanbul, 34398, Turkey
Özaydın Orhan: Faculty of Economics, Administrative and Social Sciences, Istanbul Nisantasi University, Istanbul, 34398, Turkey
Dura Yahya Can: Faculty of Economics, Administrative and Social Sciences, Istanbul Nisantasi University, Istanbul, 34398, Turkey

Economics - The Open-Access, Open-Assessment Journal, 2023, vol. 17, issue 1, 13

Abstract: This article examines the relationship between Bitcoin volume and term deposit investments in Mexico, Indonesia, Nigeria, and Turkey (MINT) from 2016 to 2021. We run cointegration and error-correction econometric models for each country, analyzing both the long-term and short-term interactions between Bitcoin volume and time deposits. Our findings indicate a negative association between Bitcoin volume and term deposits in all the MINT countries, except Mexico. This suggests that individual investors in economically and financially unstable nations are increasingly turning to Bitcoin as an alternative investment option. The observed effects, while currently modest, highlight the potential threats posed by decentralized cryptocurrencies to the monetary systems of emerging economies, impacting the stability of the banking industry and overall economic growth.

Keywords: Bitcoin; term deposits; MINT; currency substitution (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:bpj:econoa:v:17:y:2023:i:1:p:13:n:1020

DOI: 10.1515/econ-2022-0056

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