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|b Purpose; this paper tries to explain deeply the use of digital currencies & cryptocurrency as a concept and its characteristics, and the threats that limited its working for future as well. It explains its effects on financial, banking stability, and on SWIFT system and economy as well. It explains also the mutual attitudes of certain global financial institutes in general then the Iraqi attitudes toward its usages; meanwhile explains the effect of blockchain and its role in a peer-to-peer- network that influence the companies’ knowledge and allow the transparency of data flow, and blockchain could also remove the intermediaries and eliminate such activities like fakes, illegitimate sources but on the other hand, it could threatened such companies like Google especially in it its technological applications. Findings; the main findings are; there is a gap between handling the traditional currencies and those virtual ones; failure to meet the real objectives of money exchanging standards; the process is still unclear to most of population; and many global threats are restricted the use of those digital currencies and cryptocurrency, and the paper recommends to establish an international council that includes many experts in law, finance, banking systems with high qualified technology to draw certain standards to save the global banking and financing systems. Research Limitations- Implications; due to the ambiguity of this concept either locally or globally, the situation is rather difficult because globally certain financial institutes concede the use of those cryptocurrencies and started to speared widely in a rapid way in which in such cases the total market shares of the world is around (1trillion and 400 billion US$) and Bitcoin is the most regular and its market share is around (45%); while locally, the situation is completely different because Central Bank of Iraq CBI refuse to trade with digital currencies due to great damage to the economy, and banking systems especially in money laundering, terrorism, tax evasion and other shortages; this policy is the same in such countries as well like Egypt, UAE, Jordan; while other countries refuse to trade with Bitcoin in specific like China, Island, Vietnam, Lebanon, KSA, and Morocco; and on the contrary others accept the trade with Bitcoins like in UK, Canada, Switzerland, Sweden and Austria. Practical Implications; unless this concept is not clear enough to understand and deal with; in addition to the lack of studies of those digital currencies and cryptocurrency, so many questionnaires have to explain in a logical way to understand this concept, and this paper tries to raise certain questionnaires towards having the minimum level of knowledge of those digital currencies and cryptocurrency, for instance;
|b - What are the main definitions that literature mentioned? - If these currencies are standardized enough to save the stability of both banking and financial sectors? - And if so, do these currencies have unacceptable effects on the banking and financing traditional transactions? - Who manage these digital currencies, and are they traded under the control of financing global limitations? - What are the qualifications and/ or skills of those who trade with these digital currencies and cryptocurrency? - What is the future of the currencies especially many countries globally still refused to trade with them? Social Implications; Iraq is a special case; especially after reviewing many financial, banking studies, because population of Iraq are still afraid to deal with traditional transactions of banking systems, moreover; although many academic departments in many universities every year graduates hundreds of skills to Iraqi market but the actual scene is completely different, and never the less, the lack of using technologies also has its effects on avoiding these novel currencies. Originality- value; with the rapid dynamic changes, what the next is really interesting! For many centuries financing and banking systems are dealing with traditional currencies which known as (tangible and actual) ones, while lately decades and after (2008) the new (intangible and virtual) currencies appeared when a Japanese programmer (Satoshi Nakamoto) called for it; and to understand its secrets, the hidden positive and/ or negative effects are still unclear and could be valuable at the same time to decide the future investment opportunities.
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