Open AccessCan Cryptocurrencies be the Future of Money? The Role of Democracy
Author(s) -
Mehmet Baha Karan
Publication year - 2022
Publication title -
central european review of economics and management
Language(s) - English
Resource type - Journals
ISSN - 2544-0365
DOI - 10.29015/cerem.939
Subject(s) - fiat money , cryptocurrency , democracy , authoritarianism , economics , monetary economics , optimism , humanity , commerce , political economy , market economy , law , political science , monetary policy , computer security , politics , computer science , social psychology , psychology
The purpose of this article is to evaluate if cryptocurrencies that have robust technology and anonymous features can be the money of the future. In this study, the transition phases of paper money, which started to be used at the beginning of the 17th century, to bank money, then banknotes and fiat money were examined. By pointing out that the fiat money system has developed within the conditions of humanity's search for democracy and freedom. It has been stated that fiat money can only be successful in democratic systems where institutions operate freely, and therefore fiat money is an instrument of democracy. It has been concluded that the authoritarian tendencies, which have started in the world since the 21st century due to nationalism, migration, and climate change, are an important factor in the widespread use of cryptocurrencies. It has been concluded that the spread of cryptocurrencies is directly dependent on the democratic practices of countries and if authoritarianism rises, the use of cryptocurrencies will inevitably be more.