DeFi, Blockchain and Cryptocurrencies: Proposing a Global Money Matrix for the Blockchain Era
Keywords:
Blockchain, DeFi, Cryptocurrency, CBDC, Money
Abstract
Unlike early civilizations with an entire economy built around agriculture and the practicality of the barter system, today's complex economies require immediate, low-cost transactions. The digitalization of transactions is helping economies develop through various new assets and currencies. The appearance of DeFi, CBDC’s, and many blockchain based systems has created a bit of a debate among researchers. Consequently, the matter maintains a certain ambiguity, which requires more research. In this paper, we will be discussing how blockchain is revolutionizing the financial sector, by creating decentralized finance and central banks’ digital currencies. We will then propose a new global money matrix starting with a short literature review of existing definitions and categorizations since there still is a lack of understanding and standardization of currency categories, especially digital currencies. Then we will do the same for CBDC by categorizing it by component: participants, categories, and application scenarios.
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References
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40. Swan, M. (2015). Blockchain: Blueprint for a new economy. " O'Reilly Media, Inc.".
41. TAYAZIME, J., & MOUTAHADDIB, A. (2022). La Transformation Digitale de l’Administration Publique au Maroc : La Perception des Usagers Particuliers. Revue de Gestion et d’Économie, 9(1 & 2), 71-85.
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44. World Economic Forum, ‘Innovation-Driven Cyber-Risk to Customer Data in Financial Services’ White Paper 5 (2017) 6 (Figure 2)
45. Yannis Bakos. The emerging role of electronic marketplaces on the internet. Communications of the ACM, 41(8):35–42, 1998.
46. Ye Guo & Chen Liang. Blockchain application and outlook in the banking industry. Financial Innovation, 2(1):24, 2016.
47. Yermack, D. (2015). Is Bitcoin a real currency? An economic appraisal. In Handbook of digital currency (pp. 31-43). Academic Press.
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2. Allen, F., Gu, X., & Jagtiani, J. (2022). Fintech, cryptocurrencies, and CBDC: Financial structural transformation in China. Journal of International Money and Finance, 124, 102625.
3. Alshorman, A., Khair, E., Abushariah, M., Qaimari, M., (2020, December). BLOCKCHAIN FOR BANKING SYSTEMS: OPPORTUNITIES AND CHALLENGES. International Telecommunications Policy Review, Vol.25 No.1 March 2018, pp.33-55
4. Amler H, Eckey L, Faust S, Kaiser M, Sandner P, Schlosser B. DeFi-ning DeFi: Challenges & Pathway; 2021.
5. Bank of England, Discussion Paper: Central Bank Digital Currency. https://www.bankofengland.co.uk/-/media/boe/files/paper/2020/central-bank-digital-currency-opportunities-challenges-and-design.pdf.
6. BIS, Central bank digital currencies: foundational principles and core features, https://www.bis.org/publ/othp33.pdf.
7. Brennecke, M., Guggenberger, T., Schellinger, B., & Urbach, N. (2022, January). The De-Central Bank in Decentralized Finance: A Case Study of MakerDAO. In Proceedings of the 55th Hawaii International Conference on System Sciences.
8. Caton, J. L. (2019). Cryptoliquidity: the blockchain and monetary stability. Journal of Entrepreneurship and Public Policy.
9. Chen Y. Decentralized Finance: Blockchain Technology and the Quest for an Open Financial System. SSRN Journal 2019 [https://doi.org/10.2139/ssrn.3418557]
10. Chen, Y. (2018). Blockchain tokens and the potential democratization of entrepreneurship and innovation. Business horizons, 61(4), 567-575.
11. Chen, Y., & Bellavitis, C. (2020). Blockchain disruption and decentralized finance: The rise of decentralized business models. Journal of Business Venturing Insights, 13, e00151.
12. Ciaian, P., Rajcaniova, M., & Kancs, D. A. (2016). The digital agenda of virtual currencies: Can BitCoin become a global currency?. Information Systems and e-Business Management, 14(4), 883-919.
13. Dai W. (1998). B-money www.weidai.com/bmoney.txt.
14. de Vos, M. A. (2021). Decentralization and Disintermediation in Blockchain-based Marketplaces (Doctoral dissertation, Delft University of Technology).
15. Dos Santos, S., Singh, J., Thulasiram, R. K., Kamali, S., Sirico, L., & Loud, L. (2022, June). A new era of blockchain-powered decentralized finance (DeFi)-a review. In 2022 IEEE 46th Annual Computers, Software, and Applications Conference (COMPSAC) (pp. 1286-1292). IEEE.
16. E.A. Opare, K. Kim, A compendium of practices for central bank digital currencies for multinational financial infrastructures, IEEE Access 8 (2020) 110810–110847, http://dx.doi.org/10.1109/ACCESS. 2020.3001970.
17. Efpraxia D Zamani & George M Giaglis. With a little help from the miners: distributed ledger technology and market disintermediation. Industrial Management & Data Systems, 2018.
18. European Central Bank (2009). Price Stability: Why It is Important for You. ecb. europa.edu.
19. Fosso Wamba, S., Kala Kamdjoug, J. R., Epie Bawack, R., & Keogh, J. G. (2020). Bitcoin, Blockchain and Fintech: a systematic review and case studies in the supply chain. Production Planning & Control, 31(2-3), 115-142.
20. Frost, J., Gambacorta, L., Huang, Y., Shin, H.S. and Zbinden, P. (2019), “BigTech and the changing structure of financial intermediation”, Economic Policy, Vol. 34 No. 100, pp. 761-799.
21. Gomber, P., Koch, J. A., & Siering, M. (2017). Digital Finance and Fintech: current research and future research directions. Journal of Business Economics, 87(5), 537-580.
22. Gorenflo, C., Lee, S., Golab, L., & Keshav, S. (2020). FastFabric: Scaling hyperledger fabric to 20 000 transactions per second. International Journal of Network Management, 30(5), e2099.
23. Grassi, L., Lanfranchi, D., Faes, A., & Renga, F. M. (2022). Do we still need financial intermediation? The case of decentralized finance–DeFi. Qualitative Research in Accounting & Management.
24. Green, S. (2018). Decentralized agriculture: applying blockchain technology in agri-food markets (Master's thesis, Faculty of Graduate Studies).
25. Investopedia. (2016, October 15). Cryptocurrency. http://www.investopedia.com/terms/c/cryptocurrency.asp
26. Jagtiani, J., & Lemieux, C. (2019). The roles of alternative data and machine learning in Fintech lending: evidence from the LendingClub consumer platform. Financial Management, 48(4), 1009-1029.
27. Jihane, T. & Aziz, M. (2022). Banks and Fintech Relationship in a Digital Transformation Context. European scientific journal, ESJ, 18 (12), s. 106. doi:10.19044/esj. 2022.v18n12p106
28. Jihane, T. & Aziz, M. (2022). Proposing a new management model for digital transformation. European scientific journal, ESJ, forthcoming.
29. Lehar, A. and C. A. Parlour (2021). Decentralized exchanges. working paper, University of Calgary and University of California, Berkeley.
30. Li, Y., & Mayer, S. (2021). Money creation in decentralized finance: A dynamic model of stablecoin and crypto shadow banking. Fisher College of Business Working Paper, (2020-03), 030.
31. Mention, A. L. (2019). The future of Fintech. Research-Technology Management, 62(4), 59-63.
32. Morgan, J. S. (2017). What I learned trading cryptocurrencies while studying the law. U. Miami Int'l & Comp. L. Rev., 25, 159.
33. Nakamoto, S., & Bitcoin, A. (2008). A peer-to-peer electronic cash system. Bitcoin.–URL: https://bitcoin. org/bitcoin. pdf, 4, 2..
34. Nguyen, Q. K. (2016, November). Blockchain-a financial technology for future sustainable development. In 2016 3rd International conference on green technology and sustainable development (GTSD) (pp. 51-54). IEEE.
35. Oh, J. H., & Nguyen, K. (2018). The growing role of cryptocurrency: what does it mean for central banks and governments. International Telecommunications Policy Review, 251, 33-55.
36. Perez, Y. B. (2015). Santander: blockchain tech can save banks $20 billion a year. CoinDesk URL: http://www. coindesk. com/Santander-Blockchain-tech-cansave-banks-20-billion-a-year.
37. Poblet, M., Allen, D. W., Konashevych, O., Lane, A. M., & Diaz Valdivia, C. A. (2020). From Athens to the Blockchain: Oracles for Digital Democracy. Frontiers in Blockchain, 41.
38. Schär, F. (2021). Decentralized finance: On blockchain-and smart contract-based financial markets. FRB of St. Louis Review
39. Schueffel, P., (2021). DeFi: Decentralized Finance - An Introduction and Overview - Letter from Academia, Journal of Innovation Management, www.open-jim.org, 9(3), I-XI
40. Swan, M. (2015). Blockchain: Blueprint for a new economy. " O'Reilly Media, Inc.".
41. TAYAZIME, J., & MOUTAHADDIB, A. (2022). La Transformation Digitale de l’Administration Publique au Maroc : La Perception des Usagers Particuliers. Revue de Gestion et d’Économie, 9(1 & 2), 71-85.
42. The defiant. https://thedefiant.io/what-is-defi
43. Treiblmaier, H. (2019). Combining blockchain technology and the physical internet to achieve triple bottom line sustainability: a comprehensive research agenda for modern logistics and supply chain management. Logistics, 3(1), 10.
44. World Economic Forum, ‘Innovation-Driven Cyber-Risk to Customer Data in Financial Services’ White Paper 5 (2017) 6 (Figure 2)
45. Yannis Bakos. The emerging role of electronic marketplaces on the internet. Communications of the ACM, 41(8):35–42, 1998.
46. Ye Guo & Chen Liang. Blockchain application and outlook in the banking industry. Financial Innovation, 2(1):24, 2016.
47. Yermack, D. (2015). Is Bitcoin a real currency? An economic appraisal. In Handbook of digital currency (pp. 31-43). Academic Press.
48. Zetzsche, D. A., Arner, D. W., & Buckley, R. P. (2020). Decentralized finance. Journal of Financial Regulation, 6(2), 172-203.
49. Zhang, T., & Huang, Z. (2022). Blockchain and central bank digital currency. ICT Express, 8(2), 264-270.
Published
2023-06-30
How to Cite
Tayazime, J., & Moutahaddib, A. (2023). DeFi, Blockchain and Cryptocurrencies: Proposing a Global Money Matrix for the Blockchain Era. European Scientific Journal, ESJ, 19(16), 160. https://doi.org/10.19044/esj.2023.v19n16p160
Section
ESJ Social Sciences
Copyright (c) 2023 Jihane Tayazime, Aziz Moutahaddib
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
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