CRYPTOASSETS AND THE NEW FINANCIAL PARADIGM: TRANSFORMATIONS AND CHALLENGES IN THE DIGITAL AGE

Abstract

The rise of crypto assets represented a significant transformation in the global financial paradigm. With the growing popularity of crypto assets, financial transactions are becoming simpler and extending beyond national boundaries, facilitating financial globalization. In parallel, the pandemic has intensified the search for alternatives to traditional monetary systems, further boosting this phenomenon. The global financial system, traditionally underpinned by a complex and interconnected banking network, has experienced changes due to the advent of Bitcoin and other crypto-assets, which operate independently and in parallel with the conventional banking system. This transformation is not only limited to the emergence of new assets, but also extends to the increasing adoption of the technology underlying these assets, blockchain. The technology in question, the basis of cryptocurrencies, has been gradually adopted by banks, companies and governments, bringing agility, connectivity and security to financial and commercial transactions. This article explores the advent of cryptoassets and its implications for the global financial system. It deals with the regulatory challenges faced by these new forms of financial asset in Brazil and the possible future directions for their regulation. By assessing the intersection between technological innovation and financial regulation, the present work sought to provide a synthesized understanding of the changes that are shaping the future of the global financial system.

DOI: https://doi.org/10.56238/sevened2024.041-012