Bitcoin as International Currency: Review of Possibility

Jiho Choi, Minji Park, Yoonho Cho, Chanseo Moon and Eunseo Lee

​

Bitcoin is used for cross-border payments and remittances as it eliminates intermediaries. Bitcoin can be used by people who cannot access mature banking systems and empowers individuals in developing countries with its decentralized properties.

Bitcoin also can be used against inflation and currency devaluation owing to its fixed supply owing to its decentralization that mitigates risks associated with centralized financial systems. Bitcoin can replace an international currency when its problems such as solve volatility, scalability issues, regulatory uncertainty, security risks, and lack of acceptance are solved. As solutions, algorithms and smart contracts, collateralization, regulatory frameworks, and policies and market interventions are required as they can be used to adjust Bitcoin's supply and improve liquidity. Lightning Network can be used to provide appropriate transactions.

With such solutions, Bitcoin can be used as an international currency. Advantages to using Bitcoin help global society mitigate diverse divides in the global economy.

Keywords: Bitcoin, Cryptocurrency, Currency, Central Bank, Economy

​

ISSN 2737-5331
Volume 4, Issue 3
https://ijbsi.iikii.com.sg/
International Journal of Business Studies and Innovation

​