TRANSFORMATION OF THE FUNCTIONS OF CRYPTOCURRENCIES IN THE POST-CRISIS FINANCIAL ARCHITECTURE
Abstract
The article identifies the key patterns in the evolution of the cryptocurrency market over the period 2008–2024 and substantiates the transformation of cryptocurrency functions within the post-crisis financial architecture under the influence of global financial crises acting as catalysts for the institutionalization of crypto-assets, macroeconomic shocks, and regulatory changes. The main stages of cryptocurrency market development between 2008 and 2024 are delineated, ranging from its emergence as an anti-system alternative asset to its integration into traditional financial portfolios as a complementary instrument. Particular attention is paid to the role of global financial crises in shaping new cryptocurrency functions, from the response to the 2008 banking crisis to institutionalization driven by the COVID-19 pandemic and the establishment of regulatory frameworks in 2022–2024. It is demonstrated that the pandemic crisis of 2020–2021 marked a turning point in the transition from an “anti-system” to a “systemic” phase in the development of cryptocurrencies. During this period, their functional nature evolved from that of an independent speculative asset into a complementary component of diversified investment portfolios. The process of cryptocurrency institutionalization is examined through the interaction of market-driven and regulatory factors, including the approval of exchange-traded funds (ETFs), the expansion of decentralized finance (DeFi) platforms, and the formation of a coordinated regulatory approach reflected in policy documents issued by the International Monetary Fund, the Financial Stability Board, and the OECD. As a consequence of these developments, the degree of cryptocurrency decentralization has declined, while their dependence on global financial cycles has increased, indicating deeper integration into the contemporary financial system. The study demonstrates that cryptocurrencies have finally transformed from an experimental tool for financial freedom into a complementary element of the global investment system, and their further evolution will be inextricably linked to general financial cycles and regulatory trends.
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