A Comparative Study of Cryptocurrency and Traditional Payment Systems in International Trade: A New Trade Theory Perspective

Semen Inikhov

Bachelor's thesis

Abstract:

This thesis delves into the dynamics between traditional payment systems and the growing use of cryptocurrencies in the context of international trade. It examines traditional financial instruments such as bank transfers and credit cards that have dominated global trade, coupled with the emergence of blockchain technology and cryptocurrencies that are creating a new paradigm for financial transactions across borders. Through a methodological approach that includes comparative analysis, the study draws on sources to clarify the characteristics, benefits and problems associated with each payment system. It examines key aspects such as transaction speed, costs, security, regulatory frameworks and environmental impacts, offering detailed insight into their implications for international trade. The analysis shows the potential of cryptocurrencies to streamline transactions, reduce costs and increase accessibility, while also highlighting the challenges associated with volatility, regulatory uncertainty and environmental sustainability. The study concludes with a balanced view of the transformative potential of digital currencies alongside the enduring relevance of traditional payment systems, suggesting a future of coexistence and mutual evolution.

Keywords

Cryptocurrency, Traditional payment systems, International Trade, New Trade Theory, Comparative analysis

Language used: English

Date on which the thesis was submitted / produced: 17. 3. 2024

Thesis defence

• Supervisor: Ing. Olga Regnerová, Ph.D.
• Reader: Zdeněk Chládek, externi

Czech University of Life Sciences Prague

Faculty of Economics and Management

Bachelor programme:
Business Administration