Cryptocurrencies and blockchain – challenges and threats

Abstract

In recent years, one of the most frequently discussed aspects in the world of economics has been the use of blockchain technology in economic life and the growing popularity of cryptocurrencies. Both blockchain and cryptocurrencies have incredible potential, and it is only a matter of time before they become part of daily life. The world's largest companies regularly invest in projects related to cryptocurrencies and blockchain. On the other hand, some countries have decided to ban all private cryptocurrencies and instead develop their own concepts of a digital currency issued by a central bank. This paper aims to discuss the issues related to the potential and threats posed by the development of cryptocurrencies and blockchain technology. The analysis involves technical, social and legal aspects linked to the development of virtual money. All the considerations in the paper are based on a critical analysis of the literature on the subject and the descriptive method.