Cryptocurrency and International Business

Anastasia Goncharuk

Bachelor's thesis

Abstract:

The current situation on the market Bitcoin was first launched in 2009 as the world’s first cryptocurrency asset. The visionary Satoshi Nakamoto (pseudonym) has reimagined our financial future by identifying the importance of digitalisation and adaptation of assets into the digital world. Blockchain or DLT (distributed ledger technology) has been in research since 1991 and predated the concept of Bitcoin. Understanding digitalisation is one of the most important concepts in business as it simplifies processes, reduces human errors and is applied in managing large processes locally and internationally. Current technology allows us to outsource complex supply chain systems to the digital world. The more variables involved in a supply (such as connecting international locations, the expiration date of the product, unification and precision of financial reporting and many others), the more complex the task of a comprehensive chain of processes is. The increasing popularity of cryptocurrency among private users is compelling enterprises to strive for its adoption. Blockchain technology has a vast range of applications anywhere, where the process has to be atomised, transparent and free of errors. Brief Content In light of current events and developments, the work will give an update on blockchain technology and cryptocurrency usage. It will evaluate the potential of Decentralised Finance within International Business, as well as the challenges of its integration into the current business and financial framework. The paper will also attempt to identify whether cryptocurrency brings a major advantage to International business or, rather, it is the integration of blockchain technology itself. In the theoretical part of the thesis, the aim is to research and understand blockchain technology and cryptocurrency in the context of International Business. Pinpointing technical issues of managing different types of International Businesses where potentially blockchain technology could be applied. In the practical part of the thesis, the paper will research risks involved in the adaptation and usage of cryptocurrency from two perspectives: an accounting perspective in relation to the high volatility of the asset as well as its valuation, and from a technical perspective where digital security can be jeopardised due to complexity and relatively new adaptation possibilities. The practical part of the thesis will also link together pinpointed issues of management of the international business with known application possibilities of cryptocurrency. The aim of the work is to prove that cryptocurrency and blockchain technology usage in International Business is not just a passing trend, but is something that can expand business within the international market and reshape major business processes, providing transparency and tamper-proof traceability to the involved parties, improving efficiency and generating returns. RESEARCH QUESTIONS: - Despite the complexity of the adaptation of blockchain into supply chain systems, it will reshape supply chain systems in the next 10 years, due to the value of transparency and error-free technology. - Due to the high volatility of cryptocurrency, it will not be replacing physical currency in the next 10 years. - Main currency will be adapted to the blockchain system in the next 5 years, thus pushing forward the demand for active blockchain usage by businesses.

Abstract:

The current situation on the market Bitcoin was first launched in 2009 as the world’s first cryptocurrency asset. The visionary Satoshi Nakamoto (pseudonym) has reimagined our financial future by identifying the importance of digitalisation and adaptation of assets into the digital world. Blockchain or DLT (distributed ledger technology) has been in research since 1991 and predated the concept of Bitcoin. Understanding digitalisation is one of the most important concepts in business as it simplifies processes, reduces human errors and is applied in managing large processes locally and internationally. Current technology allows us to outsource complex supply chain systems to the digital world. The more variables involved in a supply (such as connecting international locations, the expiration date of the product, unification and precision of financial reporting and many others), the more complex the task of a comprehensive chain of processes is. The increasing popularity of cryptocurrency among private users is compelling enterprises to strive for its adoption. Blockchain technology has a vast range of applications anywhere, where the process has to be atomised, transparent and free of errors. Brief Content In light of current events and developments, the work will give an update on blockchain technology and cryptocurrency usage. It will evaluate the potential of Decentralised Finance within International Business, as well as the challenges of its integration into the current business and financial framework. The paper will also attempt to identify whether cryptocurrency brings a major advantage to International business or, rather, it is the integration of blockchain technology itself. In the theoretical part of the thesis, the aim is to research and understand blockchain technology and cryptocurrency in the context of International Business. Pinpointing technical issues of managing different types of International Businesses where potentially blockchain technology could be applied. In the practical part of the thesis, the paper will research risks involved in the adaptation and usage of cryptocurrency from two perspectives: an accounting perspective in relation to the high volatility of the asset as well as its valuation, and from a technical perspective where digital security can be jeopardised due to complexity and relatively new adaptation possibilities. The practical part of the thesis will also link together pinpointed issues of management of the international business with known application possibilities of cryptocurrency. The aim of the work is to prove that cryptocurrency and blockchain technology usage in International Business is not just a passing trend, but is something that can expand business within the international market and reshape major business processes, providing transparency and tamper-proof traceability to the involved parties, improving efficiency and generating returns. RESEARCH QUESTIONS: - Despite the complexity of the adaptation of blockchain into supply chain systems, it will reshape supply chain systems in the next 10 years, due to the value of transparency and error-free technology. - Due to the high volatility of cryptocurrency, it will not be replacing physical currency in the next 10 years. - Main currency will be adapted to the blockchain system in the next 5 years, thus pushing forward the demand for active blockchain usage by businesses.

Keywords

Cryptocurrency, Blockchain, International Business

Language used: English

Date on which the thesis was submitted / produced: 3. 5. 2023

Thesis defence

• Date of defence: 13. 6. 2023
• Supervisor: Ing. Roman Mentlík, Ph.D.
• Reader: doc. RNDr. Jan Lánský, Ph.D.

University of Finance and Administration

Bachelor programme / field:
Economics and Management / Economics and Management