CEU Electronic Theses and Dissertations, 2023
| Author | Alzoubi, Sohaib |
|---|---|
| Title | States Responses to Blockchain Technology and Cryptocurrencies |
| Summary | This thesis examines the responses of diverse states and political systems to cryptocurrencies and blockchain technology. It also aims to understand the underlying factors. The thesis is positioned within the realms of political economy and comparative politics and seeks to understand how different political systems, including democratic and authoritarian regimes, respond to technology in general and blockchain specifically. Through a mixedmethods approach, combining quantitative and qualitative analyses, this study provides insights into states' orientations and the reasons behind them. Contrary to the hypothesis that cryptocurrencies and blockchains are threats to states, the research refutes this notion with 99% confidence intervals based on a comprehensive study of 87 countries. It reveals a moderate positive correlation between a state's level of democracy and its adoption of blockchain technology and cryptocurrencies. However, caution is warranted as authoritarian countries have found ways to utilize this technology for control. Additionally, bureaucratic challenges and political instability place democratic states at a disadvantage in the broader technological race. Economic power positively influences a state's ability to introduce its Central Bank Digital Currencies (CBDC), while economically struggling countries make progress in issuing CBDCs to address their challenges. The use of cryptocurrencies in the Russia-Ukraine conflict indicates the need for further study on their potential role in conflicts. The lack of international efforts to legalize cryptocurrencies reduces states' regulatory influence. This thesis culminates by generating hypotheses for future research and holds implications for investors, states, and international entities. |
| Supervisor | Bogaards Matthijs |
| Department | Political Science MA |
| Full text | https://www.etd.ceu.edu/2023/alzoubi_sohaib.pdf |
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