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Abstract

The rapid pace of technological advancement has driven the emergence of innovative payment platforms catering to consumers\" demands for adaptable, user-friendly, cost-effective, and time-efficient transaction solutions. Among these cutting-edge innovations, decentralized digital currencies, commonly known as cryptocurrencies, along with their underlying blockchain technology, have emerged as highly promising disruptors in the financial landscape. This comprehensive review article delves into the intricate effects of cryptocurrencies as a decentralized form of money on contemporary society. Leveraging the inherent accessibility and cost-efficiency of cryptocurrencies, these digital assets empower marginalized populations, facilitating seamless cross-border remittances and expanding financial opportunities. Nonetheless, the volatile nature of cryptocurrency prices and the prevalence of fraudulent activities have sparked concerns among investors and regulators. The lack of robust regulatory oversight and the veil of anonymity shrouding transactions have rendered cryptocurrencies susceptible to scams and money laundering, necessitating unwavering vigilance and innovative strategies to combat these issues. Additionally, the energy-intensive nature of cryptocurrency mining has sparked environmental apprehensions, underscoring the imperative of adopting sustainable practices in the industry. Prudent management of digital assets and the implementation of robust security measures are vital in safeguarding users from potential risks, including fund loss resulting from accidents or hacking incidents. The future of cryptocurrencies promises further advancements, with various countries exploring the concept of Central Bank Digital Currencies (CBDCs) to enhance payment systems and financial services. Scalable solutions, such as layer 2 protocols and sharding techniques, hold the potential to address scalability challenges and optimize transaction speeds. Moreover, the convergence of Artificial Intelligence (AI) and cryptocurrencies opens up an exciting frontier where AI models and strategies may unveil novel insights and approaches in cryptocurrency markets. While cryptocurrencies present promising opportunities for financial inclusion and innovation, they also pose challenges and risks that demand careful consideration. By embracing innovation, nurturing financial inclusion, and proactively addressing potential risks, the future of cryptocurrencies is poised for sustained growth and evolution, shaping the way we interact with money and finance in the years to come.

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Keywords

Cryptocurrency, Block chain, financial inclusion, Regulatory oversight, Artificial Intelligence (AI)