Cryptocurrency integration: A blessing or a curse for economic development and stability?

Title: Cryptocurrency integration: A blessing or a curse for
economic development and stability?
Creator: Mutanda Bronson; Nomlala Bomi Cyril
Abstract: Abstract: Purpose: To systematically review and synthesize existing empirical evidence on the multifaceted impacts of cryptocurrency integration on economic development and stability, aiming to
determine whether its proliferation is predominantly beneficial or detrimental to sustainable economic systems. Methodology: A systematic literature review was conducted following the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines. The Scopus database was searched for empirical articles published between 2010 and 2024, focusing on keywords related to cryptocurrencies, economic development, economic growth, financial stability, financial risks, and financial inclusion. A multi-stage filtering process led to the inclusion of 21 relevant research articles. Results: The review reveals a predominant consensus (52.4% of reviewed articles) that cryptocurrency integration has a negative impact on economic growth and stability, primarily due to volatility,
systemic risks, and its use in illicit activities. While some studies highlight potential for financial inclusion (e.g., SME financing) and as a hedge in specific contexts, the broader findings point to
significant challenges for monetary policy, regulatory
oversight, and conventional banking paradigms. The theoretical contribution: This study consolidates fragmented research into a coherent overview, highlighting the complex and often contradictory effects of cryptocurrencies. It contributes to understanding the challenges digital currencies pose to traditional economic theories and models of financial stability, particularly within the context of achieving sustainable development. Practical implications: The findings urge policymakers to develop robust, globally coordinated regulatory
frameworks to mitigate systemic risks, combat financial crime, and protect consumers. Financial institutions must adapt their risk management strategies to accommodate digital assets. The study
also highlights the importance of public financial literacy programs regarding cryptocurrency risks and advocates for considering the impacts of cryptocurrency in broader economic and sustainable
development planning.
Keywords: cryptocurrencies, economic stability, economic growth, financial risks, financial sector
Date: 2025
Source: Economics Management and Sustainability
volume: 10
issue: 1
pages: 127-146.
issn: 2520-6303

Item sets: Research Publications - Department of Applied Business Sciences

Site pages: Research Papers – Department of Applied Business Sciences