Opportunities and Risks of Blockchain Technologies – A Research Agenda

Blockchain technologies offer new open source-based opportunities for developing new types of digital platforms and services. While research on the topic is emerging, it has this far been predominantly focused to technical and legal issues. To broaden our understanding of blockchain technology based services and platforms, we build on earlier literature on payments and payment platforms and propose a research agenda divided into three focal areas of 1) organizational issues; 2) issues related to the competitive environment; and 3) technology design issues. We discuss several salient themes within each of these areas, and derive a set of research question for each theme, highlighting the need to address both risks and opportunities for users, as well as different types of stakeholder organizations. With this research agenda, we contribute to the discussion on future avenues for Information Systems research on blockchain technology based platforms and services

Trust in Digital Currency Enabled Transactions Model

This research extends theories of trust from e-commerce to incorporate digital currencies. In particular trust in business to consumer e-commerce transactions carried out using digital currencies such as Bitcoin is explored. A model of online trust is considered to be valid in this different transaction context but the significance of each construct changes and some extensions are necessary. The role of institutional trust in transactions has differences that are explored and new constructs are suggested. These new constructs are incorporated into a new digital currency enabled transactions trust model. The results support the validity of the role of the rate of adoption and reputation of digital currencies as part of situational normality. The nature of the digital currency itself, the digital currency payment system, the payment intermediary, the digital currency P2P infrastructure, self-imposed and external regulation are also considered valid as part of structural assurance. These findings can be used by those developing the related technology, the vendors and regulatory institutions to increase consumer trust in digital currency enabled transactions in order to extend adoption and use

Post Crisis: The Future of Cryptocurrency Against the U.S. Dollar

There have been many economists who predicted prior to the pandemic, a rising  surge in the cryptocurrencies in the future if financial activities especially when new entrants start to enter the market. Due to the volatility in cryptocurrencies since its creation in 2009, It is paramount to keep track of this somewhat recent effect on the financial market. Bitcoin, one of the cryptocurrencies was said to be created to mitigate against the effect of the financial crisis of 2008. To some extent, many believed it to have done its job. This study focuses on how the cryptocurrencies have fared against the dollar and what the future holds for it during this coronavirus pandemic. Ofcourse, the crisis might have little effect on mortgage credits, business or broadly, the financial system but due to the rising use and price of the cryptocurrency, it is obvious this might shake or trigger the financial economy. A survey research design was adopted consisting of 50 bank staff in San Angelo, Texas. A mean score rating method was used to analyze the data and the responses, while in addressing the hypothesis, the chi-square was used to test the effect it has had on the dollar. The results showed that the effect of the cryptocurrencies against the dollar might be significantly low in the future. It implies that despite the expected increase in the cryptocurrencies during “lockdown”, cryptocurrencies would have little to no effect on the dollar in future since it would still carry a relatively small percentage in future due to its volatility and risk. Keywords: Cryptocurrency, digital currency, virtual currency, fiat dollar, bitcoins, halving DOI: 10.7176/RJFA/11-14-01 Publication date:July 31st 202

The Use Of Bitcoins In Light Of The Financial Crisis: The Case Of Greece

In 2008, following the outbreak of the global financial crisis, a new trading system emerged that was made possible by cryptographically-produced currencies. Among them, the most popular digital cryptocurrency is undoubtedly the Bitcoin. This alternative way of trading quickly captured the interest of both businesses and consumers. Combined with a general lack of confidence towards financial institutions, central governments, and the effect of capital controls imposed across several countries, Bitcoins begun being used extensively for funds transfer across borders and general payments. However, it is unclear whether the use of Bitcoins is extensive enough so as to lead to complete or partial disintermediation of monetary transactions, and whether users understand how the technology works and what are the inherit risks of this alternative payment mechanism. This paper addresses these questions through a survey-based study, conducted within the Greek context, where capital controls are still active and awareness regarding cryptocurrencies seems to be on the rise. Our findings show that despite that end-users of Bitcoin are somewhat concerned with regards to security issues, they are nevertheless interested in its use for identifying new business opportunities and bypassing residencybased measures, such as capital controls

The Impact of Blockchain Technology on Business Models in the Payments Industry

Because of its potentially disruptive influence on business models (BMs), blockchain technology has sparked a lively debate among researchers. Our Delphi study sets out to explore the impact of blockchain in payments, which represents a major cornerstone of banking and the cradle of this technology. The results, grouped around four areas of thoughts, indicate that blockchain allows the offering of new services and renders some of the current ones obsolete. This consequently impacts the financial structure of firms in the payments industry and further generates great potential for new BMs while making some existing ones obsolete. Eventually, new players, which are better able to leverage the po-tential of blockchain, will give a strong impulse to this development. Our findings contribute to the literature by providing new insights about the impact of innova-tive technologies on BMs and have further practical implications by presenting a better understanding of future BMs in payments

BREAKING DOWN THE BLOCKCHAIN HYPE – TOWARDS A BLOCKCHAIN MARKET ENGINEERING APPROACH

The blockchain has reached the tip of a global hype across a variety of industries. The potential of this technology, inter alia building the fundament of Bitcoin, is assumed to be immense and disruptive – particularly for the financial industry. FinTech start-ups as well as established players however are just about to explore the true potential of blockchain technology as the fundament of (financial) markets. Before this backdrop, Information Systems research is making valuable contributions to the field by integrating the technical view on blockchain with interdisciplinary research approaches. Our contribution to the growing body of Information Systems literature in the context of the blockchain is twofold: First, we conduct a comprehensive literature review of the most relevant and recent IS research on blockchain. Second, based on the findings of our review, we build on existing research and propose a Blockchain Market Engineering Framework, which can support researchers as well as practitioners in analyzing and designing the elements of blockchain-based markets on an individual and global level. In addition, we go beyond a purely analytical perspective and provide a toolbox to support the active construction of blockchain-based ecosystems and infrastructures. In doing so we pave the way for future research that will help to break down the blockchain hype

Aspectos legales de las monedas virtuales. El caso del Bitcoin

Este trabajo pretende analizar la naturaleza jurídica de las denominadas «monedas virtuales» y las consecuencias que su naturaleza jurídica conllevan en el ámbito del derecho. Las monedas virtuales son una materia novedosa que todavía carece de regulación, por lo que debe estudiarse si estas quedan englobadas en alguno de los conceptos jurídicos de nuestro marco legal, y en el caso de que así sea, los efectos jurídicos que producen por estar comprendidas en alguno de esos conceptos jurídicos

The Impact of Blockchain Technology on Financial Transactions

Blockchain technology could emerge as a disruptive innovation that streamlines financial transactions and attenuates their cost. Therefore, the financial industry must assess the opportunities and challenges presented by the technology. As a grand breakthrough, it could transform financial transactions and introduce new possibilities for established financial institutions as well as for new entrants. At the same time, incumbents and startups need to overcome technological, regulatory, and adoption challenges before blockchain technology can become a mainstream reality. Despite its potential, the literature on its impact on financial transactions is still fragmented, with weak empirical insights and limited theoretical explanations. Therefore, financial industry managers lack guidance on how to plan and prepare for the impact of blockchain technology on the operation of financial transactions. Against that backdrop, this dissertation explores the asserted and potential impacts on financial transactions with emphasis on asset verification, record keeping, data privacy, and transaction costs. The dissertation adopts a pluralist approach to examine the subject matter based on three approaches: analysis of the extant literature about blockchain technology concerning financial transactions; perception analysis based on interviews with financial executives, subject matter experts, and researchers; and a theoretical interpretation using transaction cost theory. Therefore, the dissertation synthesizes insights from the three approaches to offer managers of financial institutions guidance concerning the opportunities and challenges of blockchain technology