Unlocking the Potential of Digital Currencies in International Trade: Opportunities, Challenges, and Implications

Gabriel A. Ogunmola (gabriel00lead@yahoo.com), Pankaj Tiwari and Vikas Kumar
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Gabriel A. Ogunmola: Sharda University
Pankaj Tiwari: Sharda University
Vikas Kumar: Central University of Haryana

Chapter Chapter 17 in Digital Currencies in The New Global World Order, 2024, pp 265-285 from Springer

Abstract: Abstract The amalgamation of digital currencies and international trade has initiated a paradigm shift, fundamentally altering the dynamics of cross-border transactions. This extensive research study examines the complex relationship between digital currencies and international trade, investigating the various opportunities along with the obstacles. A comprehensive analysis of empirical evidence and case studies have been included to demonstrate the positive impact of digital currencies on cross-border transactions. Specifically, the findings highlight the enhanced efficiency, cost reduction, promotion of financial inclusion, and facilitation of transparency and traceability in trade that digital currencies offer. Nevertheless, the presence of regulatory intricacies, apprehensions over security, possible disturbances to established financial systems, consequences for economic and financial stability, and the volatility of exchange rates pose significant obstacles. This research highlights the importance of establishing cohesive regulatory frameworks, implementing effective risk management methods, and adopting a proactive stance to effectively navigate the dynamic nature of digital currencies in the realm of global commerce. A fundamental framework has been proposed for understanding and addressing the emerging opportunities and problems in the realm of global commerce as a transformation of the ongoing digital currency revolution.

Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-97-4810-5_17

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DOI: 10.1007/978-981-97-4810-5_17

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