The present study investigates the feasibility of implementing cryptocurrencies in the context of international trade, motivated by a real case of a Caribbean-based company facing challenges in acquiring US dollars to settle invoices in foreign currency. The findings of this study have significant implications for organizations facing similar challenges and contributes to the advancement of international trade payment practices. The aim of this study is to examine the use of cryptocurrencies as an alternative payment method for foreign currency invoices in companies engaged in international trade that encounter difficulties with foreign exchange conversion for the specified payment currency. Specifically, this refers to companies that, at times, are unable to convert their official currency into the target currency due to a lack of availability of the required foreign currency in the country. The research sought to understand how businesses perceive and utilize cryptocurrencies as potential solutions to FX availability issues. The methodology utilized a semi-open questionnaire distributed among stakeholders of companies involved in international trade. Data analysis combined qualitative and quantitative approaches to comprehend currency exchange challenges and cryptocurrency adoption trends. The findings unveiled a diverse landscape, with stakeholders representing different industries and countries participating in the study. A notable revelation is the significant proportion of organizations encountering issues stemming from the availability of foreign exchange (FX), prompting them to explore different solutions. Among the solutions considered, Bitcoin and stablecoins emerged as favored options, attributed to their potential to reduce transaction fees and improve security. However, regulatory uncertainty and the inherent volatility of cryptocurrencies presented great obstacles to widespread adoption. Cryptocurrency holds promise in addressing currency exchange challenges in international trade, particularly in regions plagued by FX shortages. Nevertheless, realizing its full potential necessitates collaborative efforts and informed strategies to navigate regulatory complexities and mitigate volatility risks. By doing so, stakeholders can harness the transformative power of cryptocurrency to reshape the global trade landscape effectively. [...]
Inhaltsverzeichnis (Table of Contents)
- Summary
- Introduction
- Materials and Methodology
- Results and Discussion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The main objective of this study is to investigate the feasibility of using cryptocurrencies as an alternative payment method for foreign currency invoices in international trade, particularly focusing on companies in regions experiencing foreign exchange (FX) shortages. The research explores the perceptions and usage of cryptocurrencies as solutions to FX availability issues.
- Challenges of foreign currency exchange in international trade
- Cryptocurrencies as a potential solution to FX shortages
- Advantages and disadvantages of using cryptocurrencies in international trade
- Regulatory and volatility concerns surrounding cryptocurrency adoption
- The potential impact of cryptocurrencies on international trade dynamics
Zusammenfassung der Kapitel (Chapter Summaries)
Summary: This study examines the viability of cryptocurrencies as an alternative payment solution for foreign currency invoices within international trade, particularly addressing challenges faced by businesses in acquiring necessary foreign currencies. The research, driven by a real-world case study of a Caribbean company, explores the perceptions and utilization of cryptocurrencies by stakeholders involved in international trade. Qualitative and quantitative data analyses were employed using semi-open questionnaires. Findings highlight the prevalence of FX availability issues and the preference for Bitcoin and stablecoins as potential solutions due to their cost and security advantages. However, significant hurdles include regulatory uncertainty and cryptocurrency volatility.
Introduction: This chapter establishes the context of international trade and the role of national currencies and exchange rates. It emphasizes the U.S. dollar's dominance and the growing problem of US dollar shortages in many regions, especially smaller nations like those in the Caribbean. The chapter details the implications of this shortage, including the loss of foreign reserves and the resulting challenges for local businesses in terms of delays, increased costs, and operational disruptions. It also introduces the emergence of cryptocurrencies as a potential solution to these challenges, highlighting their decentralized nature and the potential to bypass traditional banking systems. The chapter lays the groundwork for exploring the use of cryptocurrencies in international trade to address the specific challenges presented by foreign exchange shortages.
Materials and Methodology: This chapter outlines the research methodology employed in the study. A qualitative and exploratory approach was taken, utilizing a semi-open questionnaire distributed via Google Forms to key stakeholders in companies involved in international trade globally, with a particular focus on organizations interacting with countries possessing weaker financial systems prone to FX shortages. The questionnaire, comprising 34 questions (9 open-ended, 25 closed-ended), aimed to gather insights into the challenges and potential benefits of using cryptocurrencies in international trade. The data analysis integrated both qualitative and quantitative methods to analyze currency exchange challenges and trends related to cryptocurrency adoption.
Results and Discussion: This section presents the findings of the study, analyzing the potential role of cryptocurrencies in mitigating payment challenges arising from foreign currency scarcity in international trade. The analysis encompasses various aspects, including cryptocurrency acceptance and adoption rates among international traders, as well as the perceived benefits and challenges associated with integrating cryptocurrencies into existing trade infrastructure. The data reveals patterns and trends surrounding cryptocurrency use in international trade, providing insights into the complexities of adopting this technology within the global commerce landscape.
Schlüsselwörter (Keywords)
Payment, currency, trade, blockchain, digital, cryptocurrency, foreign exchange, international trade, Bitcoin, stablecoins, regulatory uncertainty, volatility.
Häufig gestellte Fragen
What is the main focus of the "Inhaltsverzeichnis (Table of Contents), Objectives, Chapter Summaries, and Keywords" document?
The document provides a language preview for an academic study analyzing the potential of cryptocurrencies as an alternative payment method for foreign currency invoices in international trade, particularly for companies facing foreign exchange (FX) shortages.
What are the key themes explored in the study?
The key themes include the challenges of foreign currency exchange in international trade, cryptocurrencies as a potential solution to FX shortages, the advantages and disadvantages of using cryptocurrencies, regulatory and volatility concerns, and the impact of cryptocurrencies on international trade dynamics.
Can you summarize the document?
The document summarizes a study examining the viability of cryptocurrencies as a payment solution for FX invoices in international trade. It focuses on challenges businesses face in acquiring foreign currencies. It uses a case study of a Caribbean company. The study explores the perceptions and utilization of cryptocurrencies by stakeholders. It highlights the preference for Bitcoin and stablecoins. It recognizes regulatory uncertainty and cryptocurrency volatility as significant hurdles.
What is the methodology used in the study?
The study employs a qualitative and exploratory approach, utilizing semi-open questionnaires distributed to stakeholders involved in international trade. The questionnaire gathers insights into the challenges and benefits of using cryptocurrencies. The data analysis integrates both qualitative and quantitative methods.
What are the key findings discussed in the "Results and Discussion" section?
The section analyzes the role of cryptocurrencies in mitigating payment challenges caused by foreign currency scarcity in international trade. It covers cryptocurrency acceptance rates, perceived benefits, and challenges of integrating cryptocurrencies. The data reveals patterns and trends in cryptocurrency use within global commerce.
What keywords are associated with this research?
The keywords include payment, currency, trade, blockchain, digital, cryptocurrency, foreign exchange, international trade, Bitcoin, stablecoins, regulatory uncertainty, and volatility.
- Citar trabajo
- Erik da Silva (Autor), 2024, Cryptocurrencies as an alternative payment method for foreign currency invoices in international trade, Múnich, GRIN Verlag, https://www.grin.com/document/1539398
