Blockchain and Cryptocurrencies in Digital Payment Systems: A Review of Global Practices

Abstract

Digital technology is rapidly transforming the financial services landscape. Payment networks are moving from cash and centralized control toward digital models that are faster and safer. Among the key innovations are blockchain and cryptocurrencies, two landscape-shaping technologies. They enable payments that are decentralized, transparent, and fast.

This article conducts a literature review of international studies and cases focused on digital payment systems built on blockchain technology. It examines the evolution of these technologies, the settings in which they are deployed, and the challenges they raise. The review draws on academic research, case illustrations, and official reports to demonstrate how blockchain enhances security, speed, and trust in payments. It also evaluates risks, including market volatility, cybercrime, and difficulties with regulation.

The analysis concentrates on the performance of digital currencies, central bank digital currencies (CBDCs), and cross border payments. By comparing country level practices, the paper offers insights, policy implications, and future opportunities. The study contends that when technology, regulation, and governance progress in alignment, blockchain and cryptocurrencies can enable a more inclusive and efficient payment system.