Cryptocurrency and Its Role in the Modern Financial System

Connor Ramsey

College: College of Business and Public Management

Major: BS.FINANCE

Faculty Research Mentor: Meng, Chen

Abstract:

Cryptocurrency is a digital form of money that uses blockchain technology to enable peer-to-peer transactions without relying on traditional banks. Cryptocurrencies such as Bitcoin and Ethereum have attracted growing attention for their potential to change how payments are made and how financial systems operate. This project examines the role of cryptocurrency in today’s financial system by analyzing both its potential benefits and its limitations. On the one hand, cryptocurrencies may offer faster and lower-cost transactions, particularly for cross-border payments, and may expand access to certain financial services. On the other hand, they face significant challenges, including high price volatility, limited use in everyday transactions, and an evolving regulatory environment. Overall, while cryptocurrency has not replaced traditional forms of money, it has influenced financial institutions and policymakers by encouraging innovation and raising important questions about the future of money and financial regulation.