THE ROLE OF DIGITALIZATION IN TRANSFORMING THE GLOBAL FINANCIAL SYSTEM: AN ANALYSIS OF CRYPTO ASSETS AND FINTECH
Keywords:
Financial Digitalization, Crypto Assets, Fintech, Global Financial System, Regulation, Financial Inclusion, Systemic RiskAbstract
The transformation of the global financial system is currently driven by the advancement of digitalization, especially through the development of crypto assets and financial technology (fintech). This study aims to understand how digitalization is changing the structure, function, and dynamics of the global financial system and identify the challenges and opportunities that arise from this process. Using a qualitative approach and case studies in the United States, the European Union, and Southeast Asia, this study explores the interactions between technological innovation, regulation, financial inclusion, and systemic risk. Data were obtained through in-depth interviews, observations, and literature studies that were analyzed thematically. The results show that digitalization drives the emergence of new financial products and services that are more inclusive and efficient, but also creates challenges such as inequality of access, regulations that are not yet uniform globally, and increasing risks of technology-based finance. Differences in regulatory readiness and digital infrastructure cause variations in impacts in each region. This study highlights the importance of balancing innovation and regulation and the need for collaboration across sectors and jurisdictions in building a stable, fair, and sustainable global financial system in the digital era.
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