By: Ali Amaan Ahmed
A digital, decentralised and democratic mode of financial transactions. A process claimed to be so efficient, transparent, and independent of governance, it revolutionizes the financial industry, putting the use of modern-day banks into question. Since the creation of cryptocurrency in 2009 by Satoshi Nakamoto (Investopedia Team, 2024), it has reached a total of $3.60 trillion in the global market (Forbes, 2025), capturing the world’s attention.
Before delving into the crux of the debate, it is crucial to understand what it means for ‘cryptocurrency to be the new universal mode of financial transactions.’ Essentially, fiat currency (government issued currency like the Dollar) would be replaced by cryptocurrency which would serve as the primary method used globally for buying, selling, and transferring goods and services (Encyclopedia Britannica, 2025). Moreover, cryptocurrency replacing fiat currency means that traditional banks will become obsolete. To understand the fundamental difference, Nandan Gowda and Chandani Chakravorty in their article titled “Comparative study on cryptocurrency transaction and banking transaction” explain that transactions through cryptocurrency require no intermediaries, whereas with traditional banking, the centralised intermediary is the bank itself (Gowda and Chakravorty, 2021). The nature of decentralized transactions is derived from the fact that “cryptocurrency is governed by blockchain protocols, having no central authority as there is with banks” (ibid). A blockchain is a public ledger which tabulates all the transactions in cryptocurrency from user to user, creating blocks that are chained together on a public spreadsheet. Throughout the course of this essay, cryptocurrency’s benefits along with drawbacks of being integrated as the new universal mode of financial transactions will be evaluated with respect to the financial sector with country specific case studies.
A common argument in support of cryptocurrency is that it makes cross-country transactions more efficient and cost-effective (Investopedia Team, 2024). “Traditional banking involves several intermediary banks”, especially when handling overseas transactions cases (ibid). In this system, “each intermediary has to process and validate the transaction before it can move on to the next, before it can finally reach the receiver, only days later” (ibid). Not only does this take time, but each bank charges “transaction fees, foreign exchange fees and service charges” (ibid) . Cryptocurrency, on the other hand, uses blockchain technology: a decentralized public ledger which records all transactions across every computer, ensuring “transparent and secure peer to peer payments” (ibid). This eliminates the need for intermediaries. For example, if a user wants to transfer money to another user in a different country, they simply log into their cryptocurrency exchange app like Binance or Coinbase, put in the receiver’s hash (unique identifier) and the amount they wish to transfer, and, within seconds, it processes the transaction. A notable country that has adopted this mechanism is El Salvador, where, in 2021, it became the first country in the world to adopt Bitcoin as legal tender (ibid). This means Bitcoin can be used alongside the U.S. Dollar (El Salvador’s official currency) when paying for goods, services, taxes and business transactions. To assess cryptocurrency’s effectiveness, the Investopedia Team states that a large portion of El Salvador’s economy depends on remittances—money sent home by Salvadorans working abroad (mostly from the U.S) (ibid). Tom Maxwell in his article “El Salvador is betting on Bitcoin to solve its high remittance costs” addressed how remittance services, such as Western Union and MoneyGram, “charge 12% to 30% for cross-border money transactions” (Maxwell, 2021). Hence, El Salvador’s adoption of Bitcoin and the introduction of the Chivo wallet (El Salvador’s official Bitcoin and Dollar wallet) has provided citizens with a more cost effective and efficient mode of cross country transactions. Cryptocurrency wallets like Chivo allow anyone with a smartphone and internet access to store money, make payments and receive funds (ibid). This makes financial transactions more cost-effective and efficient for people as opposed to traditional banking, involving intermediaries, with transaction charges and transfer times.
The Investopedia article on cryptocurrency is an effective and reliable source for general financial information. It is published by a credible platform and reviewed by financial expert Cierra Murry, ensuring authority and accuracy. The article is up to date (last revised in June 2024) and presents a balanced view by outlining both the advantages like lower transaction fees and financial inclusion and disadvantages such as volatility and regulatory concerns. In addition, its claims of cryptocurrency being more costeffective and efficient are also corroborated by Tom Maxwell’s article. Maxwell is an author who has worked for the Business Insider, covering technological companies like Google and Meta, thus he has a vested interest to maintain his reputation of providing factually correct and informative articles. However, the Investopedia article lacks primary data and specific authorship, which limits its usefulness for more technical research.
Another argument in favour of cryptocurrency is its nature of being a hedge (a way of protecting oneself against financial loss) in times of inflation. According to an article by Cryptonite.ae titled “Argentina’s Crypto Adoption Soars Amid Economic Turmoil”, it states that “between July 2023 and June 2024, Argentinians deposited approximately $91 billion into cryptocurrencies, surpassing neighboring Brazil” (Cryptonite.ae, 2024).
This surge is attributed to persistent inflation and currency devaluation in Argentina (ibid). Retail-sized “stablecoin transactions, particularly those under $10,000” (ibid). The reason why Argentinians transitioned to Bitcoin was because it offered an alternative to fiat currencies, which can lose value over time due to excessive government printing and monetary expansion. Bitcoin’s fixed supply of 21 million coins ensures scarcity, making it resistant to devaluation from inflationary pressures (Forbes, 2025) In times of inflation, the government prints more fiat money, which lowers the real value of a currency, leading to a fall in consumers’ purchasing power. Assets like Bitcoin counter this by being decentralized and not tied to any central authority; its fixed supply preserves its value. Furthermore, this scarcity helps maintain value over time allowing cryptocurrency to be used as a modern hedge that can preserve wealth in an economy increasingly impacted by inflation. This acted as a financial shelter for Argentina in times of inflation, making them rank the top in Latin America for crypto received equivalent to over $91 billion (Cryptonite.ae, 2024).
Cryptonite.ae is a UAE-based publication that focuses on cryptocurrency news, trends, and regional developments in the digital finance sector. While it provides timely and relevant insights, particularly from a Middle Eastern perspective, it is not peer-reviewed or academically rigorous as a source. Many articles lack named authors, which reduces accountability and makes it harder to assess the expertise behind the content. However, the platform demonstrates a regional focus and offers perspectives often underrepresented in Western media, making it valuable for broadening global viewpoints. Its facts are also corroborated by Forbes, making it verified to provide accurate statistical data. Given its UAE provenance, it does not have a vested interest to provide information in favour or against Argentina, hence making it neutral and reliable to use as a source to bolster the argument against cryptocurrency.
Moving on, a counterargument is that the decentralization of cryptocurrency has empowered illicit funding. According to the United Nations Office on Drugs and Crime (UNODC)’s article titled “Money Laundering”, an estimated “2 to 5 percent of global GDP, or roughly $800 billion to $2 trillion, is laundered annually, with a growing share linked to cryptocurrencies” (UNODC, 2024). Furthermore, cryptocurrency’s independence and lack of oversight has provided an avenue to terrorist funding. A report by the OCCRP (Organized Crime and Corruption Reporting Project) titled “Nigeria Charges 53 in Global Crypto Scam, Cybercrime Ring” has further validated this concern where authorities identified a cybercrime syndicate of “53 individuals, including 40 Chinese nationals” (OCCRP, 2025). Identity theft along with cryptocurrency fraud were some of the crimes they were charged with (ibid).
Furthermore, a Nigerian-registered company, “Genting International Co. Limited,” was also used to launder about $1.5 million from April to December 2024” (ibid). Although cryptocurrency’s decentralized nature democratizes financial transactions, its lack of oversight simultaneously empowers illegal behaviour such as money laundering and terrorist financing.
The OCCRP (Organized Crime and Corruption Reporting Project) is a credible and reliable source due to its reputation for investigative journalism and its history of collaborations with respected international outlets like the BBC and The Guardian. It is based in Romania, offering a European perspective which is corroborated by international bodies such as the UNODC. The article on Nigeria’s cybercrime syndicate cites specific statistical data such as the arrest of 53 individuals, and the involvement of the Nigerian EFCC—which supports its factual reliability as the facts are verified. While OCCRP may promote its vested interest towards exposing the criminal underworld, its accuracy in reports remains validated by official government actions and document figures. Therefore, the source can be considered trustworthy for academic analysis on cryptocurrency-related crime. In addition, the UNODC (United Nations Office on Drugs and Crime) is also a highly authoritative and reputable intergovernmental organization that provides well-researched, neutral, and up-to-date information on money laundering and cybercrime, making it one of the most trusted sources here.
Another argument against cryptocurrencies’ universal adoption is their price volatility.
According to an article by Harsh Notariya published by BelnCrypto titled “Bitcoin Nears
All-Time Highs in Turkey as Inflation Climbs 68.5%,” inflation in Turkey surged to “68.5% in March 2024, and the Turkish lira depreciated by over 40% against the U.S. dollar” (Notariya, 2024). As a result, Bitcoin reached an all-time high of over
“1,000,000 Turkish lira, making it appear as a safe haven for citizens trying to preserve their wealth”(ibid). However, this surge was followed by a sharp drop, illustrating Bitcoin’s inherent volatility. While Bitcoin’s decentralized nature and fixed supply make it resistant to inflationary policies, its price instability poses risks for investors seeking financial security (ibid). For investors, stability is their utmost priority, which makes Bitcoin’s volatility a drawback. As much as decentralization is said to be a benefit of cryptocurrency over traditional banks, it has also been a prominent cause for price volatility. Such price swings can lead to substantial financial losses for investors, making the adoption of cryptocurrency as a mode of financial transactions questionable, especially in countries like Turkey facing economic challenges.
BeInCrypto is a digital media platform specializing in cryptocurrency news and analysis, catering primarily to an audience interested in blockchain and digital assets. While it provides timely market insights and industry updates, its commercial nature as a crypto-focused news outlet may introduce potential biases aimed at promoting cryptocurrency adoption and investment. The article authored by Harsh Notariya appears to be well-researched and cites relevant economic data such as Turkey’s inflation rate and Bitcoin price trends, enhancing its factual accuracy. However, as with many niche financial news sites, the content should be cross-verified with independent and authoritative economic sources to confirm reliability. The provenance of BeInCrypto is transparent, with a clear focus on crypto markets, but readers should remain cautious of potential vested interests tied to the promotion of cryptocurrency. Overall, it serves as a useful resource for current crypto market trends but should be supplemented with broader economic analyses for comprehensive research. In my opinion, cryptocurrency presents promising possibilities for cost-effective, costefficient and decentralized financial transactions. However, its adoption as the new universal mode of financial exchange still has concerns. The high volatility, limited regulatory oversight, and security concerns associated with many cryptocurrencies make its global adoption questionable. Despite the concerns, I believe these stem from its prematurity and can easily be mitigated by creating a coexisting mechanism between governments and blockchain networks. The Central Bank Digital Currencies (CBDCs) is an example of a coexistence between cryptocurrency and banking where crypto’s advantages are adopted whilst its concerns are prevented through it being centralised by the central bank. This has been implemented by countries like China, India, Finland, Ecuador. To further strengthen my research, I plan on interviewing crypto-experts along with economists to ignite a fruitful debate as to the effectiveness of integrating cryptocurrency in governments through CBDCs. Transactions started with barter, transitioned to paper and digital currencies and I will research more to find out if cryptocurrency will truly be the new mode of financial transactions.
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