Risks and Repercussions of Cryptocurrency Deliberating on The Stability of The Financial Sector During the period 2017-2021

Abstract

This study aims to take note of some aspects of cryptocurrencies, by clarifying their concept and types, then reviewing their most  important advantages and benefits, the components of their issuance system and the technology on which they are based, arriving at a  statement of the risks associated with their use, as well as raising the challenges they pose to local and international financial regulatory  authorities. After the technical analysis of the trading prices of the most important cryptocurrencies and the follow-up of their  development during the period 2017-2021, the study concluded that their trading prices are highly volatile and may be affected by  external factors such as financial and political events, and trading on the margins raises financial risks, although cryptocurrencies have  several benefits. At the economic level and at the level of individuals in light of the distinctive features that it enjoys, but there are many  risks and challenges it faces, which in total are considered a direct threat to the security and stability of the financial system, which calls  for the regulatory authorities to regulate or prohibit them.