Date of Award

Fall 2024

Degree Type

Open Access Dissertation

Degree Name

Political Science, PhD

Program

School of Social Science, Politics, and Evaluation

Advisor/Supervisor/Committee Chair

Melissa Rogers

Dissertation or Thesis Committee Member

Yi Feng

Dissertation or Thesis Committee Member

Tanu Kumar

Terms of Use & License Information

Creative Commons Attribution 4.0 License
This work is licensed under a Creative Commons Attribution 4.0 License.

Rights Information

© 2024 Jennifer L Verdier

Keywords

Cryptocurrency Adoption, Decentralization, Financial Institutions, Governance and Regulation, International Political Economy, Political Economy

Subject Categories

Economics | International Relations | Political Science

Abstract

This dissertation examines the global adoption of cryptocurrency, challenging the broad narrative that it would fundamentally revolutionize finance through decentralization, depoliticization, and democratization. Despite not fully delivering on these transformative promises, cryptocurrencies have continued to gain traction. This dissertation delves into the political economy aspects that fuel this sustained adoption. Through quantitative examination of data from the International Monetary Fund, Statista, World Uncertainty Index, and the World Bank, this study investigates the complex interplay of factors influencing cryptocurrency adoption. The study employs multivariate models with TFE, assessing not only economic variables but also the critical roles of trust in traditional financial institutions, governance quality, and economic inclusion. The inclusion of time dynamics reveals that country-specific attributes and temporal factors significantly shape cryptocurrency adoption, with intricate relationships emerging across diverse economic and political contexts. Findings suggest that economic stability measures such as inflation rates and GDP per capita are significant, yet they form only part of a complex array of drivers. Trust deficits, governance issues, and exclusionary barriers also play pivotal roles, as evidenced by the heightened explanatory power and notable temporal shifts, particularly during the years 2021 and 2022.These insights endeavor to bridge a critical gap in the international political economy literature. They provide a nuanced understanding that can aid policymakers in formulating comprehensive regulatory approaches and assessing the potential for integrating cryptocurrencies within established financial systems. This work highlights the multifaceted drivers of cryptocurrency adoption and challenges the notion that economic factors alone can explain its rise in the global financial landscape.

ISBN

9798346863410

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