The Genesis of the Crypto-economy: Application of the Institutional Theory

This study investigates the institutionalization of the crypto-economy from an institutional theory perspective and also examines the role of existing institutional pillars in its development. The path analysis using global institutional indicators reveals that the development of the crypto-economy is significantly affected by regulatory, cognitive, and normative factors of a country. Further, the regulative pillar fully mediates the relationship between the social pillar and the crypto-economy. While we find convincing evidence that a country’s social pillar endorses crypto-economy, its indirect effect is more prominent and significant than the direct effect.