GROUP 8

CRYPTOCURRENCIES
IN THE FINANCIAL
SYSTEM

PRINCIPLES OF SYSTEM
THINKING
PRESENTORS:

LALOSA, ARGABIOSO, BOQUIL, OBANE,

Tricia Andrea Franklin Diana
What is Cryptocurrency

https://youtu.be/1YyAzVmP9xQ
SUMMARY OF
THE CASE
SUMMARY OF THE CASE

Cryptocurrencies are a threat to the

traditional financial system due to their
lack of rules, high volatility, and
security issues. The lack of regulation
has created a breeding ground for
fraudulent activities and money
laundering, while high volatility and
limited acceptance have made them
unsuitable for use as a medium of
exchange. Security concerns include
hacking, phishing, and theft of digital
wallets.
FACTS OF THE
CASE
Facts
Transactions are recorded for
the public to access

The blockchain is a public list where every bitcoin

transaction is kept track of. It is this technology
that makes cryptocurrencies possible.

Cryptocurrency as a new Financial

System.
Cryptocurrency could be a new Financial System for the
future. Given the circumstances that the world is
currently having at the moment and the possibilities
that this new way offers, just like how the metallic
monetary system became what we now know as
banknotes.
ISSUE OF THE
CASE
 ISS UES
Banning instead of acknowledging
Cryptocurrency
The case mentioned that it is much
"easier to ban cryptocurrency than to
develop a mechanism for regulating its
turnover" which makes managing and
regulating cryptocurrency difficult to
implement.
Vulnerability to Fraudulent Actions
Though with Blockchain technology,
unfortunately, investors are still
vulnerable when it comes to fraud. And
the reason for this is because
cryptocurrency is decentralized meaning
it isn't regulated by the government.
VARIABLES
VARIABLES
Mining Cyptocurrency

Regulated by the
government

Goes to Mining wallet

Use as a financial system

VARIABLES
Banning cryptocurrency

Vulnerability to fraud

People still mining

secretly
CAUSAL
LOOP
 SYSTEM
ARCHETYPE
 FIXES THE
FAIL
An archetype consists of a balancing
loop that attempts to accomplish a
specific result, but a reinforcing loop
prevents it. The interaction between
these two loops causes the reinforcing
loop's actions to eventually undermine
the desired outcome that the balancing
loop first achieved
 Problem Fix
Vulnerability to Mining
Fraud Cryptocurrency

Reinforcing Unintended
Loop Consequences
Banning of
Mining Secretly
Cryptocurrency
RECOMMENDATION
 REGULATION EDUCATION

TECHNOLOGY COLLABORATION INNOVATION

THANK
YOU!