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Journal of Economics 2026 Journal of Economics 2025
Mehriban Imanova
Nakhchivan State University
https://orcid.org/0000-0003-2210-724X
mehriban.i@ndu.edu.az
Sevila Rustamova
Nakhchivan State Technical College
Under Nakhchivan State University
https://orcid.org/0009-0001-3361-010X
sevilerustemova73@gmail.com
The Impact of the Cryptocurrency Market on
the Financial System in the Modern Era
Abstract
In the last decade, cryptocurrencies and blockchain technologies have caused radical changes in the financial system and affected the structure of global economic relations. This area is of great relevance not only from technological, but also from economic and legal aspects. Especially for developing countries like Azerbaijan, cryptocurrencies have great potential in terms of the formation of a digital economy, increasing financial inclusion, and liberalizing capital flows. The main goal of the study is to study the mechanisms of influence of cryptocurrencies on the world and Azerbaijani economies, to determine their impact on financial stability, state regulation, and fiscal policy. At the same time, it is aimed to propose an optimal regulatory model that can be applied at the national level on a scientific basis. The study used analysis-synthesis, systematic approach, and comparative methods, and analyzed global cryptocurrency indicators based on databases of international organizations.The regulatory models of countries such as the United States, the European Union, and China were examined in a comparative manner, and the possibility of adaptation for Azerbaijan was assessed. The analyses conducted prove that cryptocurrencies carry both risk and development potential. Under the conditions of their proper regulation, the expansion of the digital economy, the strengthening of financial innovations, and the fintech sector are possible. The originality of the work lies in the fact that for the first time the concept of a "balanced regulatory model" is proposed for the Azerbaijani economy.
Keywords: Azerbaijan, cryptocurrency market, blockchain technology, bitcoin, financial stability, digital economy
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