Cryptocurrency in lower-middle-income countries: a monetary theory and regulation perspective

Hidayat, Ariodillah and Andaiyani, Sri and Saputri, Nyimas Dewi Murnila and Bashir, Abdul (2023) Cryptocurrency in lower-middle-income countries: a monetary theory and regulation perspective. Int. J. Blockchains and Cryptocurrencies, 4 (3). pp. 15-30. ISSN 2516-6433

Text Cryptocurrency in lower-middle-income countries a monetary theory and regulation perspective.pdf Download (1MB)

Abstract

This study analyses the role of monetary policy and financial openness toward the regulation of the cryptocurrency development market. We used panel data in low-middle-income countries from 2010 to 2019. Using an ordered probit model represents a comprehensive extension of probit analysis capable of handling scenarios of more than two outcomes of an ordinal dependent variable featuring a naturally ordered set of potential values. The findings suggest that de facto financial openness, government effectiveness, and macroeconomic variables such as inflation, interest rates, and trade openness significantly affect the regulation of the cryptocurrency development market while economic growth variables are insignificant. The higher the de facto financial openness, the greater the chances of countries banning the use of crypto to minimise the risks posed. Monetary policy through high-interest rates will lower crypto regulation to be banned meaning it will increase crypto regulation to be liberalised.

Item Type:	Article
Uncontrolled Keywords:	cryptocurrency; financial openness; monetary policy; law perspective.
Subjects:	H Social Sciences > HG Finance > HG3810-4000 Foreign exchange. International finance. International monetary system
Divisions:	01-Faculty of Economics > 60201-Development Economics (S1)
Depositing User:	ariodillah hidayat ario hidayat
Date Deposited:	19 Jun 2025 05:13
Last Modified:	19 Jun 2025 05:13
URI:	http://repository.unsri.ac.id/id/eprint/175574

Actions (login required)

View Item