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The Impact of Cryptocurrency on Financial Stability

Marcelas Amelang

Schiller International University

CA 497 Capstone

Jane Rösel

January 11, 2024

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The Impact of Cryptocurrency on Financial Stability

Title Page

The formatting of the title page serves a variety of different usecases. First of all it

establishes a professional and academic standard as every paper having a different custom title

page would be unprofessional and cause a lot of unnecessary confusion and chaos. Secondly it

ensures consistency across all submissions once again making everything less chaotic and more

clear. Lastly it provides essential information in a standardized format, making it easier for

reviewers and readers to identify key elements of the research at a glance. There is nothing I will

have to adapt for this proposal besides the name, title ect.

Introduction(applied to my paper)

In the introduction, the problem addressed is the evolving and potentially disruptive

impact of cryptocurrency on financial stability. This section highlights the significance of this

issue in the current financial landscape, anticipates the outcomes of the study, and discusses its

potential impact. The rationale for investigating this topic includes the rapid growth of

cryptocurrency and its increasing integration into mainstream finance, which poses new

challenges and opportunities for financial stability. Supporting this rationale with statistical data

and previous findings will add weight to my arguments. In addition to that I will be able to

integrate my own experience and knowledge into it given I work in the financial sector myself as

a portfolio manager as well as being the creator of a cryptocurrency.

Preliminary Literature Review

The preliminary literature review provides a succinct summary of existing academic

knowledge on the impact of cryptocurrency on financial stability. This review will identify the

extent to which current research addresses this issue and where gaps exist. The intention is to
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deepen the understanding of this complex relationship through in-depth research, addressing

these identified gaps.

Problem Statement, Aims, and Objectives

This section narrows the research focus to a concise statement: Investigating how

cryptocurrency influences financial stability in modern economies. The aim is to understand the

extent and manner in which cryptocurrencies affect financial markets, institutions, and overall

economic stability. The objectives include examining the correlation between cryptocurrency

market trends and traditional financial market behavior, and assessing the responses of financial

institutions to the rise of cryptocurrencies. This will involve a combination of quantitative

analysis of market data and qualitative assessment of institutional policies and expert opinions,

following a specific timeline. Very relevant will also be the ETF approval from

yesterday(11.01.2024) as this finally allows mainstream adoption of cryptocurrency in the

finance sector with over 80% of global portfolio managers answering in a poll that they would

diversify into cryptocurrency if there was a more regulated way to invest, something that is now

possible.

References and Ethics

Accurate and comprehensive references are vital for academic integrity and ethics. They

acknowledge the contributions of other scholars, enable readers to follow up on original sources,

and demonstrate the researcher's engagement with existing literature. Ethical considerations in

referencing include avoiding plagiarism, providing credit where due, and maintaining

transparency in the research process.

Problem Formulation
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The proposed study aims to explore the influence of cryptocurrency on financial stability.

This involves understanding how the integration of digital currencies into the financial system

affects the stability of financial markets, the behavior of financial institutions, and overall

economic health. This research will include the rapid growth and adoption of cryptocurrencies,

their volatility, and the regulatory challenges they pose.