This master’s thesis predicts the development and assesses the potential of cryptocurrencies in the areas of investment, trade and technology based on their technical, economic and legal analysis. Although the thesis deals with cryptocurrencies in general, the key focus is placed on their most prominent representative (Bitcoin) in trying to predict the effects on the future of financial markets from a wide, multidisciplinary perspective.

The development of Internet technology has promoted the progress of all aspects of society. Under the background of Internet finance, the traditional financial model is changing, such as currency payment. With the deepening of Internet technology, the virtualization of money is deepening, and the market entry, trading and payment methods are also subverting the tradition. Bitcoin as a new means of payment began to appear in the public eye. It is a challenge to the traditional way of trading supported by Internet technology. Despite the constant controversy since its inception, Bitcoin still occupies a place with its unique advantages - Asymmetric encryption, decentralization,transparency of transaction records and so on. In the eyes of opponents, Bitcoin is more of a highly speculative asset, and as it becomes progressively more difficult to mine, the cost of mining is increasing. However, in the eyes of supporters, it is a reliable means of payment, not subject to government supervision, nor will it produce a virtual transaction record. From the regulator's point of view, it is more like a shelter for unscrupulous people to evade regulation and commit money laundering and crime. It is undeniable that in just a few years, Bitcoin has developed to a certain scale,has a certain industrial chain...

Den snabba framfarten av blockkedjetekniken samt teknikens disruptiva möjligheter inom den finansiella sektorn har lett fram till vad denna studien undersöker; blockkedjeteknikens påverkan på utlandsbetalningar och huruvida marknaden för utlandsbetalningar påverkas av den ökade utforskningen och användningen av tekniken. Faktorerna kostnad tid och säkerhet kopplat till utlandsbetalningar analyseras för att ta reda på hur dessa skulle kunna påverkas. För att lättare få en förståelse för kostnader, tid och säkerhet kopplat till utlandsbetalningar inom bankindustrin utreds även hur en traditionell utlandsbetalning går till. När en ny disruptiv teknik växer fram och börjar användas i allt större omfång kan det frambringa konsekvenser som påverkar hela branschen. Därav tar denna studie även upp hur den finansiella marknaden kan komma att förändras till följd av blockkedjetekniken och vad det kan innebära för organisationer. Fintech-bolag har på senare år tagit allt större plats på den finansiella marknaden och fortsätter att styrka deras marknadsposition. Samtidigt som banker måste anpassa sig till teknikens utveckling måste de även förhålla sig till fintech-bolagens starka framväxt. Många storbanker investerar i fintech-bolag för att på så sätt kunna följa med den snabba digitala utvecklingen. Allianser mellan banker och fintech-bolag benämns fintech 2.0. Tack vare teknikens snabba utveckling i samband med digitaliseringen är det svårt att förutspå vad som kommer att definiera den finansiella sektorn i framtiden. Fortsatt forskning inom området är nödvändigt för att förstå hur processer, organisationer och marknader kommer att förändras till följd av utvecklingen. / The rapid progress of blockchain technology and the disruptive possibilities of technology in the financial sector has led to what this study examines; the impact of blockchain technology on cross-border payments and whether the market for foreign payments is affected by the increased exploration and use of the technology. Factors such as cost, time and security linked to cross-border payments are analyzed to find out how these could be affected. In order to get an understanding of costs, time and security linked to cross-border payments in the banking industry, we also investigate how a traditional cross-border payment is being executed. When a new disruptive technique emerges and begins to be used in a wider range, it can cause consequences that affect the entire industry. Hence, this study also examines how the financial market may change as a result of blockchain technology and what it might mean to organizations. In recent years, fintech companies have taken more place in the financial market and continued to strengthen their market position. While banks must adapt to the technology development, they must also relate to the strong growth of the fintech companies. Many major banks invest in fintech companies in order to be able to follow the fast digital development. Alliances between banks and fintech companies are called fintech 2.0. Thanks to the rapid development of technology in connection with digitization, it is difficult to predict what will define the financial sector in the future. Continuing research in the field is necessary to understand how processes, organizations and markets will change as a result of the development.

Up until now, Bitcoin as a marketing tool to leverage the brand image of an e-retailer has only been researched scarcely. This paper contributes to filling this gap by looking at Bitcoin’s suitability as primarily a cognition-based trust-building tool in the context of online sex shops. Online sex shops in which affective-based trust is taken as a use-case to exemplarily assess whether far associations customers have with Bitcoin can be transferred unto their brand image, assessing its effectiveness. Moreover, as Bitcoin is a payment method, this study feels the pulse in how far trust is established with the general public to assess chances of success when introducing it as an option to existing alternatives. Trust is considered important in the transaction and decision-making processes of a customer as much as it is in building and fostering brand image. Two expert interviews and one survey make up the data source for this research to gain a holistic view from the customer’s, the retailer’s and the industry expert’s perspective. Findings from the different sources were first in-case analyzed before cross-comparing them. The study highlighted the fact that Bitcoin as a marketing tool is highly case-sensitive, cognition-based, and risky in both - financial and marketing terms. It is best used as part of a long-term strategy and in cases in which the brand image of a brand is as similar to that of Bitcoin as possible. Additionally, Bitcoin disposes of many of the same qualities as other payment methods do and although trust in it is still limited, it is competitive in terms of factors like transaction speed and cost. There is no uniform bundle of associations and a positive or negative evaluation thereof to be connected to it, however, factors like gender, financial education, and trust in one’s own abilities are all found to influence trust and usage intention. The study finds potential for both – Bitcoin as a marketing tool and payment method.

Historien om betalningsmedel vänder under 2010-talet blad och börjar på ett nyttkapitel. Nästa steg i den monetära utvecklingen sker när de virtuella valutorna ökar ianvändning. Den virtuella valutan Bitcoin introducerades av Satoshi Nakamato år2009 och är en digital valuta, vilket innebär att den inte är kopplad till någon fysisktillgång med rättslig innebörd. När ett nytt betalningsmedel introduceras ärfundamentala faktorer gällande samhällets acceptans och nyttjande ett ekonomisktpussel. Hur kommer det sig att individer byter verkliga varor mot en papperssedel, ettmynt eller en elektronisk signal? Att inneha och aktivt använda nya betalningsmedelsom virtuella valutor medför risker som många inte är bekanta vid. Organisationeroch konsumenter som öppnar upp portarna för nya betalningsmedel måste ha kunskapom dess konsekvenser, både positiva och negativa. Studien syftar till att belysa derisker som uppstår när nya betalningsmedel som Bitcoin gör entré. Forskningsfrågankring vilka risker innehav och nyttjande av virtuella valutor medför besvaras genomen kvalitativ analys av främst forskningsartiklar. Vår studie tyder på att riskerna kringvirtuella valutor som Bitcoin relaterar till förtroende för betalningsmedlet. De flestariskerna uppstår vid innehav av Bitcoin och relaterar inte till tekniska faktorer. / The history of means of payment is taking new shape during the 2010:th decade andstarts on a new chapter. The next step in the monetary evolution will take place oncevirtual currencies become more frequently used. The virtual currency called Bitcoinwas introduced by Satoshi Nakamoto in the year of 2009 and is a digital currency,which means that it is not connected to a physical good with a forensic purpose.When a new mean of payment is introduced fundamental factors regarding theacceptance of society and utilization becomes a financial puzzle. How can it be thatindividuals exchange physical goods for a paper bill, a coin or just somethingelectronic? To possess Bitcoin and to use new means of payment on a frequent basisbring risks many users are not familiar with. Organizations and consumers whomopen up their gates to new means of payment need to gain knowledge ofconsequences both positive and negative. The purpose of this study is to highlight theaforementioned risks, which arise from the fact that new means of payment likeBitcoin is introduced. The research issue regarding which risks may arise frompossession and usage of virtual currencies are concluded by a qualitative analysisresearch containing mostly scientific articles. Our study depicts that the risksassociated with virtual currencies like Bitcoin, are all somehow related to the trust forthe specific mean of payment. Most risks arise from actually possessing a Bitcoin andhence not as much related to the technological element.