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Abstract
Cryptocurrency is a subset of the class of digital currency, which has become an important type of digital currency. The first cryptocurrency was Bitcoin launched in 2008. Recently, cryptocurrencies have become the main topic in the financial industry. This article briefly analyzes the main features of cryptocurrency, concerning the advantages and disadvantages of cryptocurrencies. In addition, this article also highlights the legal and regulatory dimensions of cryptocurrency. Furthermore, the paper elaborates, the role of monetary institutions in dealing with cryptocurrency. In conclusion, it is not easy to predict whether cryptocurrencies will affect banks and other financial institutions, but it is important to consider cryptocurrencies as an alternative for financial transactions in the future
Keywords: blockchain, cryptocurrency, bitcoins, regulation, monetary policy.
JeL classification: G21, G23,
1.INTRODUCTION
In the age of modern technology, digitalization is taking on the way services, goods, capitals, and assets are traded and exchanged as well it moves them into the virtual world. Accordingly, the need arose to create an alternative standard physical means of exchange - cryptocurrency. Cryptocurrencies have recently become quite a popular topic. Cryptocurrency represents digital money that you can't hold in your hands, can't feel, which can be confusing for a lot of people, especially those who are not following changes that technology brought to us (Milutinović, 2018). The first cryptocurrency was Bitcoin launched in 2008, and since then more than 4000 different cryptocurrencies have emerged according to Satista.com.
We live in the 21st century, the century of new technologies, smartphones, robotics. Just a few years ago, it was impossible to imagine everything we have today. The way of doing business has changed, but also the labor market. Nowadays, the basic mechanism of business and exchange of goods and services is based on the concept of transactions. Transactions also bring with them mistrust, which throughout history has been resolved through mediation. The financial crisis of recent years has led to a loss of confidence in trading platforms, financial intermediaries, and payment systems so one of the most prominent innovations is cryptocurrency precisely their characteristic of the nonexistence of the so-called reliable third parties, which also includes dramatic lower transaction fees, especially for international transactions.
The use of cryptocurrencies is becoming increasingly influential and widespread globally, as well...