Abstract
Information and communication technology (ICT) has facilitated the development of digital currencies, leading to the modernization of global currency structures, payment systems, and innovative financial solutions. This modernization has created numerous opportunities as well as uncertainties. This study examines the risks, opportunities, and impacts of digital currencies on the financial sector, with a focus on developing countries seeking to adopt the technology. A systematic literature review, guided by PRISMA 2020 principles, analyzed 30 eligible articles selected from an initial pool of more than one million records in ScienceDirect, Scopus, and IEEE Xplore databases, through the lens of Diffusion of Innovation (DOI) theory. The findings show that key risks include regulatory uncertainty, cybersecurity threats, money laundering, and terrorism financing. The main opportunities identified are improved digital financial inclusion, lower transaction costs, new financial products, better payment security, and enhanced transparency. Blockchain technology emerged as the most significant driver of digital currencies, alongside several supporting technologies. The findings offer valuable guidance for stakeholders in the digital financial sector and for policymakers in developing countries considering digital currency adoption.
Recommended Citation
Abubakar, R.,
Deen, Z.,
Osarenotor, I.,
&
Cavus, N.
(In press).
The Role of ICT in the Financial Sector: An Assessment of the Risks, Technology, and Impacts of Digital Currency - A Systematic Literature Review.
Information Technology for Development.
Available at:
https://aisel.aisnet.org/itd/vol32/iss3/16