The Transformative Potential of Cryptocurrencies in Fintech: Advantages, Challenges, and Future Prospects

Vamshi Krishna Dasarraju

Abstract: The fintech industry has witnessed significant growth in recent years, largely due to technological advancements that have introduced innovative payment methods. Cryptocurrencies have emerged as a key player in this transformation, challenging traditional financial systems with their fast, secure, and decentralized nature. This paper explores the role of cryptocurrencies within fintech, highlighting their advantages such as quick transactions, low fees, and increased financial inclusivity. It also addresses the challenges posed by volatility, regulatory uncertainty, and potential security concerns. Additionally, the paper discusses the potential of cryptocurrencies to revolutionize cross-border payments and promote financial inclusion for underserved populations. Emerging trends like Central Bank Digital Currencies CBDCs and Decentralized Finance DeFi are also examined, emphasizing their potential to reshape the financial landscape. The future of cryptocurrencies in fintech is promising, but it requires a balanced regulatory approach to fully realize their potential while ensuring consumer protection.

Keywords: Cryptocurrencies, Fintech, Blockchain, Financial Inclusion, Decentralized Finance

How to Cite?: Vamshi Krishna Dasarraju, "The Transformative Potential of Cryptocurrencies in Fintech: Advantages, Challenges, and Future Prospects", Volume 12 Issue 10, October 2023, International Journal of Science and Research (IJSR), Pages: 2165-2167, https://www.ijsr.net/getabstract.php?paperid=SR24628110936, DOI: https://dx.doi.org/10.21275/SR24628110936