Improving human development in West African countries: do cryptocurrencies matter?

This study examines the relationship between cryptocurrencies and human development. To analyze data from nine West African countries between 2016 and 2023, we used the generalized method of moments (GMM) in the system to assess the impact of the trading volume of all cryptocurrencies and the value of Bitcoin and Ethereum on the human development index (HDI). Our results show a positive and significant link between these indicators and the HDI, even after applying the Newey‒West and Driscoll-Kraay standard error robustness tests. In light of these results, we recommend that policymakers establish a clear and appropriate regulatory framework while being vigilant to the risks inherent in cryptocurrencies.