Assessing the future prospects for cryptocurrencies

Hatice Karahan

doi:10.36096/ijbes.v3i1.242

Authors

Hatice Karahan Professor, Department of Economics and Finance, Istanbul Medipol University, Istanbul, Turkey &Visiting Scholar, Davis Center, Harvard University, Cambridge, MA, USA . https://orcid.org/0000-0001-5997-5863

DOI:

https://doi.org/10.36096/ijbes.v3i1.242

Keywords:

Cryptocurrencies, demand, anonymity, regulations, financial stability

Abstract

Cryptocurrencies are attracting considerable attention around the world because of the various advantages that they offer. On the other hand, they also carry some inherent risks. Although monetary authorities broadly agree that cryptocurrencies do not engender an immediate threat to national and global financial systems, the future is full of unknowns. In this regard, drawing a framework based on the current drivers of demand for cryptocurrencies would help visualize the prospects for these assets and create a roadmap to avoid or manage any disruptive risks. This discussion paper aims to contribute to the literature by examining the key factors that will determine the future performance of cryptocurrencies. The main conclusion derived from the discussion is that national regulations will potentially affect the direction of cryptocurrencies, as well as the need for any special efforts in the domain of monetary policy

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Author Biography

Hatice Karahan, Professor, Department of Economics and Finance, Istanbul Medipol University, Istanbul, Turkey &Visiting Scholar, Davis Center, Harvard University, Cambridge, MA, USA .

Karahan received her B.A. and M.A. degrees from Boğazici University in Management and Economics, respectively. She earned her Ph.D. degree in Economics at Syracuse University in 2006, where she also conducted research for the Center for Policy Research. She joined Istanbul Medipol University in 2015 as the founding head of the Department of Economics and Finance. She was appointed as a senior economic advisor to the President of Turkey and a member of the Council of Economic Policies, in 2017 and 2018, respectively. In 2020, she has been awarded professor of economics. Her research interests include macroeconomics, labor economics, development cooperation, and political economy. She is currently a visiting scholar at Harvard University.

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