Proceedings of the 2025 International Conference on Hybrid Commerce, Human Capital, and Economic Dynamics (ICHCH 2025)

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Economic Analysis of Cryptocurrency: Technical Foundations, Monetary Policy Logic, and Regulatory Challenges

Authors
Yuhan Yan1, *
1Business School, University of Birmingham, Birmingham, UK
*Corresponding author. Email: YXY468@student.bham.ac.uk
Corresponding Author
Yuhan Yan
Available Online 18 June 2026.
DOI
10.2991/978-2-38476-585-0_7How to use a DOI?
Keywords
Bitcoin; Cryptocurrencies; Finance; Blockchain; Monetary policy
Abstract

Since the time of Bitcoin’s issuance, cryptocurrencies have gradually become an important development trend in the field of financial science and technology, and their operating logic is fundamentally different from that of the traditional monetary system. The rules for the issuance and distribution of cryptocurrencies are usually built into the program code, and the total amount, the pace of issuance, and the incentive mechanism are all set by algorithms, forming a decentralized and self-executing ‘monetary policy’, thus replacing the regulatory function of the central bank. At the same time, it realizes the functions of data tampering, node consensus, and automatic execution of smart contracts through blockchain technology, and builds a financial infrastructure without the need for trust intermediaries. Based on the technical principles of cryptocurrencies, this paper focuses on analyzing their intrinsic laws of operation and economic implications, assessing their feasibility as a monetary tool, and exploring the challenges facing the existing regulatory system. The study aims to clarify the institutional logic of cryptocurrencies and enhance the systematic understanding of their economic functions and policy risks.

Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 International Conference on Hybrid Commerce, Human Capital, and Economic Dynamics (ICHCH 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
18 June 2026
ISBN
978-2-38476-585-0
ISSN
2352-5428
DOI
10.2991/978-2-38476-585-0_7How to use a DOI?
Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Yuhan Yan
PY  - 2026
DA  - 2026/06/18
TI  - Economic Analysis of Cryptocurrency: Technical Foundations, Monetary Policy Logic, and Regulatory Challenges
BT  - Proceedings of the 2025 International Conference on Hybrid Commerce, Human Capital, and Economic Dynamics (ICHCH 2025)
PB  - Atlantis Press
SP  - 51
EP  - 56
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-2-38476-585-0_7
DO  - 10.2991/978-2-38476-585-0_7
ID  - Yan2026
ER  -