The study examines the impact of two major cryptocurrencies – Bitcoin and Ethereum, on inflation in four major emerging countries – Brazil, India, China and South Africa (BICS).
Authors
Vaibhav Aggarwal, Assistant Professor, Jindal Global Business School, O.P. Jindal Global University, Sonipat, Haryana, India.
Mohit Saini, Department of Commerce, Maharshi Dayanand University, Haryana, Rohtak, India.
Pankaj Kumar, Department of Management Studies, Deenbandhu Chhotu Ram University of Science and Technology, Haryana, Murthal, India.
Mahender Yadav, Department of Commerce, Maharshi Dayanand University, Haryana, Rohtak, India.
Adesh Doifode, Symbiosis School of Banking and Finance, Symbiosis International (Deemed University), Maharashtra, Pune, India.
Summary
Academic research on cryptos has exploded over the past decade; however, the impact of cryptocurrency on inflation in emerging markets is an underexplored research area. This study addresses this by investigating the impact of two major cryptocurrencies – Bitcoin and Ethereum, on inflation in four major emerging countries – Brazil, India, China and South Africa (BICS).
Monthly data on cryptocurrencies and inflation (WPI and CPI) is taken from Oct 2017 to Nov 2022. The Vector Auto-Regression (VAR) findings indicate that in BICS countries, there is no significant impact of cryptocurrencies – Bitcoin and Ethereum on the inflation of BICS. The results of this study can be useful for policymakers regarding inflation management and the risks and challenges associated with cryptocurrency adoption.
Published in: International Journal of Diplomacy and Economy (IJDIPE)
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