What the Extent of Cryptocurrency Adoption Across Countries Reveals About the Future of the Global Financial System

Abstract

Cryptocurrency has become a focal point of government policy, raising questions about its role in the future financial system. This paper examines differences in cryptocurrency adoption between emerging markets, where it is often used to address economic challenges, and developed markets, where it serves as a tool to balance global power. Through case studies and policy analysis, it explores countries’ approaches and the extent of adoption. The findings show that while crypto offers opportunities such as faster remittances and greater foreign investment, most governments are bridging it with regulated systems to mitigate risks like volatility and illicit activity. The study concludes that cryptocurrency will not replace traditional money in the near term, but a hybrid system combining fiat currencies, stablecoins, and CBDCs is a future trend.