The advent of cryptocurrencies and select factors concerning their use in Malta

Abstract

This dissertation analyses the inception of cryptocurrencies and the characteristics that make them different from traditional fiat currencies. No significant research was conducted about cryptocurrencies in the Maltese context so far. The purpose of this study is to understand how the Maltese public perceives cryptocurrencies and whether their use is feasible in the local context. The dissertation also investigates what local regulators, individual investors and businesses think about cryptocurrencies. Data is collected via interviews with local regulators as well as local individual investors and businesses. This study also delves deeper by considering the case of Bitcoin, one of the major cryptocurrencies used today. The findings from the analysis show that in order for cryptocurrencies to be regulated properly by regulatory bodies, they need to undergo drastic reform. Such reform would include the removal of anonymity and decentralization. This might prove to be difficult as these are important features which make cryptocurrencies different from traditional currencies. Local users might be reluctant to accept cryptocurrencies in exchange for goods and services, due to the practical absence of local or international regulation regarding cryptocurrencies.