ECONOMIC EFFICIENCY OF CRYPTOCURRENCY APPLICATION IN THE BANKING SECTOR: ANALYSIS OF GLOBAL EXPERIENCE

Rapid evolution of the financial sector has led to the increasing integration of cryptocurrencies into banking operations. This study explores the potential of cryptocurrencies as a viable alternative to traditional banking, focusing on cost reduction, transaction speed, security enhancements, and financial inclusion. Despite their advantages, cryptocurrencies face significant challenges, including price volatility, regulatory inconsistencies, cybersecurity risks, and scalability limitations. The study analyzes the role of blockchain technology in enhancing transaction security and transparency while addressing concerns related to fraud, compliance, and financial stability. Additionally, the paper evaluates the impact of stablecoins and central bank digital currencies (CBDCs) on the banking sector, examining their potential to bridge the gap between digital finance and traditional monetary systems. The comparative analysis highlights key differences in transaction efficiency, cost structures, and regulatory oversight among traditional banking, cryptocurrency banking, and CBDCs. Findings suggest that while cryptocurrency banking offers faster transactions and lower costs, regulatory and liquidity challenges persist. Meanwhile, CBDCs provide a balanced approach by combining digital efficiency with government-backed financial stability. The study concludes that integrating cryptocurrencies into banking requires a harmonized regulatory framework, improved blockchain scalability, and enhanced cybersecurity measures. Policymakers must address financial stability concerns while promoting innovation in digital finance. Future research should focus on the long-term implications of cryptocurrency adoption on banking intermediation, monetary policy, and global financial stability.