Raaj S Ranjan
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Ongoing Research
March 28, 2025
7 min read
Cryptocurrency and Blockchain: The Future of Money? Unveiling a Paradigm Shift in Global Finance
Investigating the potential of Cryptocurrency and Blockchain to redefine money, exploring technical feasibility, economic viability, social impact, and regulatory challenges.

By Raaj S Ranjan Former Post Graduate Student, Dept. of Commerce, IGNOU, Kolkata, India

Abstract

The sudden rise of Cryptocurrency and Blockchain technology has sparked a global debate about the future of money. The Big Question: Is Cryptocurrency going to redefine money just like the Fiat Currency did in 1971? Is the Supremacy of US Dollar being challenged by these Cryptocurrencies?

This research paper investigates if Cryptocurrency, riding on the WEB 3 technology i.e., Blockchain, has the potential to replace or complement existing money, exploring their technical feasibility, economic viability, social impact, and regulatory challenges.

For this research, I have employed a Mixed-Method approach where I have:

  • Reviewed over 30 literatures, mainly written between 2019-2024, starting from the whitepaper published by Satoshi Nakamoto.
  • Analyzed market data from CoinMarketCap and Chainalysis.
  • Examined various case studies including El Salvador’s Bitcoin Adoption and Ethereum’s decentralized finance (DeFi) ecosystem.

My preliminary findings reveal that blockchain’s scalability and stability, along with stablecoins like USDT and GUSD achieving a $10 Trillion transaction volume in 2024, have made cryptocurrencies a very strong contender for slowly replacing traditional fiat currencies.

However, significant challenges remain:

  • Volatility: (e.g., 30% annualized for Bitcoin)
  • Illicit Activity: ($40.9 billion in 2024, although only 0.34% of total volume)

The existence of 420 million global bitcoin users voices the potential for financial inclusion, yet simultaneously poses significant environmental concerns with approximately 150 TWh annual energy consumption.

As per the analysis and data gathered till now, I can confidently claim that by 2035, Stablecoins and DeFi assets could form the backbone of a decentralized global reserve system. This potentially challenges the dominance of the USD and enables easy settlement beyond any border, as evidenced by their resilience in systemic shocks (Quantile-VAR analysis) and geopolitical trials (e.g., BRICS Crypto Settlement discussions, US political figures supporting Cryptocurrency, USA creating the Strategic Bitcoin Reserve and the U.S. Digital Asset Stockpile). This shift towards cryptocurrencies is clearly visible and increasingly vocal.

In this research paper, I have also dug deep into the need for:

  • Regulatory frameworks for stablecoins.
  • Investment strategies for DeFi.
  • Cross-chain interoperability solutions.

This study offers policymakers, investors, and academics a forward-looking perspective on cryptocurrencies’ transformative potential, urging a reimagination of money in an increasingly decentralized world.

(Status: Ongoing research - preliminary findings presented)