Cryptocurrencies in Modern Finance: A Literature Review

Abderahman Rejeb (Doctoral School of Regional Sciences and Business Administration, Széchenyi István University, 9026 Gyor)
Karim Rejeb (Higher Institute of Computer Science of El Manar, 2, Rue Abou Raïhan El Bayrouni, 2080 Ariana)
John G. Keogh (Henley Business School, University of Reading‚ Greenlands, Henley-on-Thames, RG9 3AU, UK)

ETIKONOMI
Vol 20, No 1 (2021)

The focus on cryptocurrencies in the finance and banking sectors is gaining momentum. In this paper, we investigate the role of cryptocurrencies in modern finance. We apply a narrative literature review method to synthesize prior research and draw insights into the opportunities and challenges of leveraging cryptocurrencies. The results indicate that cryptocurrencies offer businesses and individuals’ lower transaction costs, higher efficiencies, increased security and privacy, meaningful diversification benefits, alternative financing solutions, and financial inclusion.Challenges exist related to the integration of cryptocurrencies in modern finance. These include the lack of regulatory standards, the risk of criminal activity, high energy and environmental costs, regulatory bans and usage restrictions, security and privacy concerns, and the high volatility of cryptocurrencies.The current review is useful for scholars and managers, including those seeking to have a more balanced understanding of these emerging financial instruments.JEL Classification: E42, F30, F65, G21, G23How to Cite:Rejeb, A., Rejeb, K., & Keogh, J. G. (2021). Cryptocurrencies in Modern Finance: a Literature Review. Etikonomi, 20(1), 93 – 118. https://doi.org/10.15408/etk.v20i1.16911.