




































Bangladesh Journal of Multidisciplinary Scientific Research 

 Vol. 4, No. 1; 2021 

ISSN 2687-850X   E-ISSN 2687-8518  

Published by CRIBFB, USA 

 

25 

PROSPECTS, PROBLEMS AND POSSIBLE OPPORTUNITIES 

OF DIGITAL CURRENCY IN BANGLADESH 
 

 

Humaira Begum 

Assistant Professor 

Department of Finance and Banking  

Faculty of Business Studies 

Hajee Mohammad Danesh Science and Technology University 

 Dinajpur-5200, Bangladesh 

E-mail: humaira.begum@hstu.ac.bd 

 

 

ABSTRACT 

This study attempts to present the prospects and problems of the digital currency in Bangladesh 

as well around the world. To demonstrate the prospect, price and trading volume of selected ten 

digital currencies being presented for observing the emerging the demand. From our country's 

perspective, the opinions of the respondents collected through questionnaires shed light on the 

prospect of digital currency in Bangladesh. Additionally, the study presents a systematic literature 

review (SLR) of research on digital currency. The review incorporated 11 articles presenting 

several issues related to digital currency. This study uses data from 2013 to 2020 for respective 

currencies related to price and trading volume. As well respondent’s opinions collected through 

“questionnaires” are presented as per percentage. This study also makes theoretical contributions 

to the extant literature. The findings demonstrate that digital currency is now successfully traded 

in the most countries around the world except a few. Descriptive statistics of price and trading 

volume indicate that most of the variables are highly skewed with large outliers and kurtosis 

column shows that all the variables are near to normal distribution and investment regarding these 

values indicates a safe trading. The consents of 175 respondents present a positive attitude of the 

general public towards digital currency. The SLR methods suggest that a secure system and 

advanced technology should be attached to the block chain system to ensure better performance. 

The SLR findings also point out that digital currency is obviously a better alternative to cash, 

although it has some risks. 

 

Keywords: Digital Currency, Prospects, Problems, Price, Trading Volume. 

 

INTRODUCTION 

New technologies are causing variable changes in the global economy; including the exchange of 

goods, services and resources. An important development in this transformation process is the 

emergence of digital currency. Digital currency is a balance or record stored on an Internet-

distributed database, an electronic computer database, a digital file or a stored value card. An 

American computer scientist named David Chaum was the developer of the first concept of digital 

currency in 1983. In the early 1990s, various digital cash companies were founded and the best-

known of the digital currencies are DigiCash. The two major forms of digital currencies are- i) 

crypto currencies ii) virtual currencies. Today digital currency can create an added value in the 

Global economy.  



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As of December 2019, there are more than 1,500 digital currencies (DCs) and this number 

is growing rapidly. This study cannot discuss the details of all these constructions here. And most 

digital currencies use blockchain technology. The specific function of some DCs can vary greatly. 

In addition, it is impossible to predict the future technological innovations that the makers of the 

new DC may use.  An important feature of DC transactions is that DC units are moved directly 

from one location to another in the electronic ecosystem without the involvement of any 

intermediaries (such as financial institutions). A DC unit is usually stored at an electronic address 

with a unique public ID. Multiple addresses can be combined into one "electronic wallet". DC 

transactions are usually recorded chronologically in a public decentralized ledger, commonly 

referred to as a "blockchain." The ledger is made up of "blocks" that contain records of past 

transactions. The blockchain is run by the so-called "mining" community. A miner who provides 

the computing power needed to process a transaction and keep the system running. In return for 

their services, miners receive a small amount of DC units in the form of voluntary fees or newly 

excavated DC units. 

Now the world enters into the era of virtual currencies, foreign exchanges are still regulated 

in Bangladesh by backdated rules like the Foreign Exchange Regulation Act, 1947. However, 

Bangladesh is moving towards developed countries, meeting the SDGs by taking several policies 

by the government (Banu et al., 2021). Six countries including Bangladesh (Algeria, Bolivia, 

Bangladesh, Ecuador, Nepal, and The Republic of Macedonia) totally banned cryptocurrencies. 

Bangladesh Bank warned in 2014 and published ‘cautionary notice’ in 2017 that Bitcoin violates 

the Foreign Exchange Regulatory Act, 1949, Money Laundering Prevention Act, 2012, and Anti-

Terrorism Act, 2009. Digital currency has the potential to generate benefits. There are some 

renowned companies such as Microsoft, Tesla, Lionsgate, Amazon, etc. use different kinds of 

digital currency. Bangladesh should allow the virtual transaction platform for transactions through 

the use of digital currencies to facilitate international trade in goods and services. 

People are moving towards the use of various upgraded currency like electronic money 

which is a consequence of digitalization. Digital currency can cover the liquidity problem of a 

country. Digital currency may help to change the nature of money transactions in Bangladesh and 

may contribute positive impacts on Bangladesh’s finance. Thus, it’s high time to realize the 

importance of digital currency for digitalization in the financial sector. 

The rapid spread of internet-based commerce and mobile technology facilitates the use of 

Digital currency (DC). Secure online payment systems such as PayPal and mobile payments and 

transfer solutions like M-Pesa are changing the ways of making payments for goods and services. 

The development of effective regulatory responses to DCs is still at an early stage. These 

currencies are difficult to regulate as they cut across the responsibilities of different agencies at the 

national and global levels. Different international bodies are playing an important role in 

identifying and discussing the risks posed by DCs and possible regulatory responses. 

This study focuses on the overall prospects of digital currency, reveals the present scenario 

in Bangladesh, identifies the problems and risks in our country, and suggests some possible ways 

to use digital currency. In this study mostly the secondary data from valid online sources are used, 

to show the overall prospects of digital currency. Price fluctuations and trading volume by 

observing the top ten digital currencies ranked by coinmarketcap.com are used. As well the 

descriptive statistics of these currencies present the safe trading of them. For presenting the 

scenario of digital currency in Bangladesh particular secondary data regarding our country was not 

available. A structured questionnaire is used to collect primary data. Based on the response of 175 

respondents I try to find some problems and expectations of the people regarding digital currency 



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in Bangladesh. Study results show that the majority of the respondents want digital currency in 

Bangladesh although it has some risks associated with money laundering as well as chances of 

fraudulence. 

Previously many studies were conducted but the prospect of Bangladesh regarding digital 

currency not been covered yet. This study has somehow been able to present this scenario. If this 

study results being considered, it will be helpful for the government as well as for the policymakers 

of our country to rethink the approval of digital currency by following the country successfully 

using digital currency.  

 

SYSTEMATIC LITERATURE REVIEW (SLR) 

This study presents a systematic literature review (SLR) of research on digital currency. This 

review incorporates 14 articles related to the digital currency, which are as follows: 

 

Table 1. Systematic Literature Review (SLR) 

 

SL No Title Paper Type Findings 

1. Security of Crypto 

currencies in block chain 

technology: State-of-art, 

challenges and future 

purpose. 

Article Ghosh et al. (2020) narrate that there 

are several involvements of different 

technologies in blockchain 

(consensus methodology, forks and 

facilitates with a detailed discussion) 

for smart communication. They also 

noted that improvements in security 

and system networks may gain the 

trust of the users.  

2. Financial implications of 

fourth industrial 

revolution: Can bitcoin 

improve prospects of 

energy investment. 

Article Su et al. (2020) revealed that the 

transformation of society has 

increased dramatically with the 

ongoing or continuous progress of 

blockchain, cloud computing, and so 

on. Those technologies reduce the 

transaction fees and liquidity costs. 

Also noted is that bitcoin could be 

considered as an asset and bitcoin has 

more investment prospects. 

3. Digital Currencies in 

Financial Networks 

Article Castrén et al. (2020) studied digital 

currencies in financial networks 

which highlighted the strong cross-

border links in financial network. 

This study basically focused on the 

shift of deposits of households and 

non-financial corporations from the 

banking sector to the digital currency 

to figure out the responses on those 

sectors. 



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4. Regulatory Issues of 

Digital Currencies 

Article Zhu and Fu (2020) focused on the 

regulatory issues of digital 

currencies, which revealed that with 

the fast advancement of the internet 

and electronic installment, digital 

currency with block chain as the 

innovation have steadily entered 

individuals’ horizon and have also 

gotten the consideration of 

government around the world. 

5. Digital currency 

forecasting with chaotic 

meta-heuristic bio-

inspired signal processing 

techniques. 

Article Altan et al. (2019) found that there is 

a scope to use hybrid models in 

forecasting digital currency. Due to 

the global economic crisis, 

cryptocurrency forecasting has 

become essential.  

6. How to make a digital 

currency on a block chain 

stable. 

Article Saito and Iwamura (2019) revealed 

that, for the stabilization of the 

market price of digital currencies, 

there is a need for the systematic 

technology. 

7. The Impact of Digital 

Currency on the Financial 

System: Universal 

Decentralized Digital 

Currency, Is It Possible 

Article  Li et al. (2019) revealed that in 

China, digital currency has a 

substitution effect on current deposits 

in the long term.  Their study 

suggested that based on the problems 

of digital currency, such as the 

decentralized supervision institution, 

hacker attack, etc., a global digital 

currency supervision system, 

including two parts: national 

supervision and international 

supervision could be helpful to the 

establishment of the supervision 

system of digital currency. 

8. Decarburizing Bitcoin: 

Law and policy choices 

for reducing the energy 

consumption of block-

chain technology and 

digital currencies. 

Article Truby (2018) revealed that digital 

currency development can help to 

solve problems related to climate 

change. It also helps to generate the 

fund for climate finance programme. 

Digital currencies somehow may 

harm the industry, if sustainable 

alternatives have not been developed.  

9. Time-varying causality 

between equity and 

currency returns in the 

Article Kanda et al. (2018) Noted that 

sometimes they found information 

spill over evidence between equity 



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United Kingdom: 

Evidence from over two 

centuries of data. 

markets and currency markets and 

sometimes they didn’t.  

10. The role of secondary 

sources on the taxation of 

digital currency (Bitcoin) 

before IRS guidance was 

issued. 

Article Gross et al. (2017) narrated that there 

must be need to involvement of 

secondary sources, and bitcoin as a 

digital currency reported as taxable 

income.  

11. The economics of Bitcoin 

and similar private digital 

currencies.  

Article Dwyer (2015) stated that digital 

currencies can trade 24/7 on 

computerized market where there 

might be no broker as well without 

the intervention of financial 

institutions like banks. Digital 

currencies can cut the cost of 

withdrawal of money. Digital 

currencies will help the undermine 

government’s ability to gain 

immense revenue from sustainable 

inflation.  

12. Financial Inclusion, 

Digital Currency, and 

Mobile Technology. 

Book Chapter Sapovadia (2018) narrated in this 

chapter that to regulate digital 

currency, mobile technology is the 

most effective media to cover non-

served population. He also 

approaches the government to create 

an expected regulation which will be 

business friendly, fraud-proof, 

affordable and so on.   

13. Virtual currencies under 

EU anti-money 

laundering. 

Article Vandezande (2017) Narrated that 

according to EU-wide legislation the 

legal framework can’t be applied to 

all categories of virtual currencies. 

European commission proposed an 

amend for anti-money laundering 

rules which effects the virtual 

currency exchange platforms.  

 

METHODOLOGY 

The study is conducted by using both primary and secondary sources of data. The details of this 

research method are as follows: 

 

Sample Selection 

For observing the overall prospect of digital currency, this study uses the top ten digital currencies 

ranked by coinmarketcap.com. To demonstrate the scenario of digital currency both secondary and 



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primary data have been used. This current study conducts a questionnaire survey that covers 175 

respondents from different groups of people. 

 

Selection Period 

For each currency, there were variations of time. The time frame starts from 2013 and ends up the 

last data available for the year 2021. I collected this secondary data from coinmarketcap.com. For 

collecting primary data, I prepared a structured questionnaire and gathered responses from 175 

respondents regarding their views and opinions about digital currency. 

 

 Table 2. Description of the data 

 

Name of digital currencies Starting date Number of observations 

Bitcoin 28-Apr-2013 2970 

Ethereum 7-Aug-2015 2140 

Tether 25-Feb-2015 2297 

Binance cash 25-Jul-2017 1421 

Cardano 1-Oct-2017 1353 

Dogecoin 15-Dec-2013 2739 

XRP 4-Aug-2013 2872 

USD coin 8-Oct-2018 981 

Polkadot 20-Aug-2020 299 

Uniswap 17-Sep-2020 271 

Total 17343 

 

Source of Data  

As mentioned earlier in this study, I used coinmarketcap.com as a trustable source for secondary 

data as well as some data being collected from the different financial institutions that previously 

used digital currency in Bangladesh. Primary data are collected through a questionnaire from 175 

respondents.  

 

RESULT AND DISCUSSION 

Descriptive Statistics 

Table 3 shows the descriptive statistics of daily price of Bitcoin, Ethereum, Tether, Binance cash, 

Cardano, Dogecoin, XRP, USD coin, Polkadot, and Uniswap. In the first column, we can see the 

mean value. The second column displays the standard deviation of the observations. The third and 

fourth columns indicate the minimum and maximum values. The fifth column represents the 

skewness coefficients. The last column shows the kurtosis coefficient respectively. 

 

Table 3. Descriptive statistics of the price of digital currencies 

 

 Mean Std. Min Max Skew. Kurt. 

Bitcoin 7.5491 1.7068 4.2258 11.058 .0734 1.789 

Ethereum 4.6254 2.0788 -.8439 8.3353 -.8486 2.926 

Tether .00042 .01793 -.4942 .19062 -17.60 5.177 



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Binance cash 2.7843 1.3630 -2.3025 6.5157 -.00562 5.461 

Cardano 2.2068 1.1088 -3.9120 .83724 .9594 3.121 

Dogecoin -6.8042 1.7182 -9.3465 -.3856 .8978 4.323 

XRP 2.8488 1.9742 -5.8745 1.2178 -.0330 1.307 

USD coin .00342 .00707 -.03045 .0392 1.534 7.650 

Polkadot 2.5125 .92605 1.0577 3.8701 .0337 1.258 

Uniswap 2.3807 1.0263 .65752 3.7649 -.1303 1.274 
 

              The average prices (log form) are 7.54 for Bitcoin, 4.62 for Ethereum, closer to zero for 

Tether and USD coin, 2.78 for Binance cash, 2.20 for Cardano, -6.80 for Dogecoin, 2.85 for XRP, 

2.51 for Polkadot, and 2.38 for Uniswap. The data of Bitcoin, Binance cash, XRP, Polkadot, and 

Uniswap are fairly symmetrical whereas data of Ethereum are moderately skewed and the rest are 

highly skewed. On the contrary, the kurtosis values of all the variables indicate too peaked. The 

variables Tether, Binance cash, Dogecoin, and USD coin imply a leptokurtic distribution since it 

has heavy tails on either side, indicating large outliers. Bitcoin, Ethereum, XRP, Polkadot, 

Cardano, and Uniswap have a mesokurtic distribution and follow nearly normal distribution [N (μ, 

σ2)]. 
 

Table 4. Descriptive statistics of the trading volume of digital currencies 

 

 Mean Std. Min Max Skew. Kurt. 

Bitcoin 20.672 3.011 14.865 26.583 -.1000 1.410 

Etherem 20.398 3.299 11.53 25.159 -.8499 2.539 

Tether 18.948 5.898 .6931 26.354 -.7886 2.471 

Binance cash 18.799 1.779 9.136 23.612 -.4796 4.604 

Cardano 18.874 1.768 14.369 23.675 .4989 2.988 

Dogecoin 15.308 3.092 9.722 24.963 .3173 2.380 

XRP 17.374 3.955 9.025 24.332 -.1535 1.409 

USD coin 19.255 1.745 11.597 22.809 -1.036 4.454 

Polkadot 21.031 .9804 17.703 23.032 -.3350 2.410 

Uniswap 20.584 .6694 19.059 22.575 .5393 3.1405 

 

               Table 4 shows the descriptive statistics of trading volume of Bitcoin, Ethereum, Tether, 

Binance cash, Cardano, Dogecoin, XRP, USD coin, Polkadot and Uniswap. In first column, we 

can see the mean value. Second column displays the standard deviation of the observations. Also 

the third and fourth columns indicate the minimum and maximum value. Fifth column represent 

the skewness coefficients. The last column shows the kurtosis coefficient respectively. The mean 

of all the variables is ranging from 17.00 to 21.00. The highest value is of Polkadot (21.03) and 

the lowest is of XRP (17.37). Most of the variables are highly skewed with large outliers and 

kurtosis column shows that all the variables are near to normal distribution and investment 

regarding these values indicates a safe trading. 

 

Prospects of Digital Currency in Bangladesh through the Questionnaire Survey 

A different group of people based on their occupation, participate in this survey. This study uses 

the percentage of response by the participants. Secondary data can be used to supplement the 

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analysis with a purposive study. This study collected opinions from 175 respondents through a 

structured questionnaire. 

Figure 1 showing that among 175 respondents, 7 are freelancer, 3 are web developer, 8 are 

online marketer, 1 is importer/exporter and 156 are from other occupations. Figure 2 showing that 

144 respondents heard about digital currency, 12respondents not yet and 17 respondents are 

confused about their opinion regarding this question. 

 

 
 

 

 

 

Figure 3 shows that 20 respondents know about digital currency from newspapers, 112 are 

from social media, 12 are from family and friends, 11 are from their own using purpose and 20 are 

from other media. From figure 4 we found that 78 respondents agree with the statement, 27 

somehow agree, 57 are strongly agree, 8 are neutral, 1 respondent disagree, 2 somehow disagrees 

and 2 strongly disagrees. 

 

 

 
 

4%

2%
4%

1%

89%

Freelancer

Web developer

Online marketer

Importer/Exporter

Others

12%

64%

7%

6% 11%

Newspaper

Social media

Family and

friends

From own using

purpose

Others

Figure 1.5: Digital currency could 

be the best alternative of cash 

 

 

82%

7% 11% Yes

No

May be

44%

15%

33%

5%

1%

1%1%
Agree

Somehow agree

Strongly agree

Neutral

Disagree

Somehow

disagree
Strongly

disagree

Figure 2. Have you ever heard about 

digital currency? 

 

Figure 1. Occupational Status  

 

 

 

Figure 4. Digital currency may help fast 

transactions? 

 

Figure 3. Sources from where they know 

about digital currency? 

 



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From figure 5 we found that 77 respondents agree, 29 somehow agree, 42 strongly agree, 

15 are neutral, 6 disagrees, 4 somehow disagree and 2 strongly disagree. From figure 6 we found 

that 83 respondents agree, 24 somehow agree, 26 strongly agree, 25 are neutral, 9 disagree, 4 

somehow disagree and 4 strongly disagree. 

 

 

 
 

 

 

 

From figure 7 this study found that 74 respondents agree, 15 somehow agree, 72 strongly 

agree, 9 are neutral, 3 disagrees, 1 somehow disagrees and 1 strongly disagrees. From figure 8, 

this study found that 52 respondents agree, 34 somehow agree, 32 strongly agree, 39 are neutral, 

10 disagrees, 6 somehow disagrees and 2 strongly disagrees.  

 

 

  
 

 

 

 

44%

17%

24%

9%

3%
2%

1%

Agree

Somehow agree

Strongly agree

Neutral

Disagree

Somehow

disagree

42%

8%

41%

5%

2%
1%

1%

Agree

Somehow agree

Strongly agree

Neutral

Disagree

Somehow

disagree
Strongly

disagree

48%

14%

15%

14%
5%

2%
2%

Agree

Somehow

agree
Strongly agree

Neutral

Disagree

Somehow

disagree
Strongly

disagree

30%

19%18%

22%

6%

4%

1%

Agree

Somehow agree

Strongly agree

Neutral

Disagree

Somehow

disagree

Figure 5. Digital currency may be the best 

alternative of cash? 

 

 

Figure 6. Redemption of digital currency 

may be easier than cash? 

 

Figure 7. Digital currency may be the easy 

way for online payments. 

 

 

 

 

Figure 8. By using digital currency may 

occur money scam. 

 

 



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From figure 9, we found that 46 respondents agree, 33 somehow agree, 24 strongly agree, 

31 are neutral, 19 disagrees, 8 somehow disagrees and 14 strongly disagrees. From figure 10, we 

conclude that 49 respondents agree, 26 somehow agree, 29 strongly agree, 35 are neutral, 20 

disagrees, 10 somehow disagrees and 6 strongly disagrees.  

 
 

  
 

 

 

 

From figure 11, we found that 83 respondents agree, 23 somehow agree, 47 strongly agree, 

12 are neutral, 4 disagrees, 1 somehow disagrees and 5 strongly disagrees. From figure 12, we 

found that 65 respondents agree, 23 somehow agrees, 59 strongly agrees, 15 are neutral, 9 

disagrees, 2 somehow disagrees and 2 are strongly disagree.  

 
 

  
 

 

 

 

26%

19%
14%

18%

11%

4%
8%

Agree

Somehow agree

Strongly agree

Neutral

Disagree

Somehow

disagree

47%

13%

27%

7%

2%

1%

3%

Agree

Somehow agree

Strongly agree

Neutral

Disagree

Somehow

disagree

28%

15%
17%

20%

11%

6%

3%

Agree

Somehow agree

Strongly agree

Neutral

Disagree

Somehow

disagree

37%

13%
34%

9%

5%

1%

1%

Agree

Somehow agree

Strongly agree

Neutral

Disagree

Somehow

disagree

Figure 9. Digital currency may increase the 

risk of transaction. 

 

Figure 10. Digital currency may increase 

fraudulence. 

 

Figure 11. If Bangladesh Govt allowed 

digital currencies, it will help you for 

getting your payments faster? 

 

Figure 12. In Bangladesh Digital 

Currency transaction is risky because of 

the lack of technology? 

 



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From figure 13, we found that 68 respondents agree, 23 somehow agree, 42 strongly agree, 

28 are neutral, 10 disagrees, 5 somehow disagrees and 0 strongly disagrees. From figure 14, we 

found that 70 respondents agree, 19 somehow agree, 43 strongly agree, 34 are neutral, 4 disagrees, 

2 somehow disagrees and 3 strongly disagrees.  
 

 

  
 

 

 

 

 

 

From figure 15, we found that 59 respondents agree, 32 somehow agree, 20 strongly agree, 

36 are neutral, 16 disagrees, 7 somehow disagrees and 6 strongly disagrees. From figure 16, we 

found that 62 respondents agree, 24 somehow agree, 34 are strongly agree, 38 are neutral, 5 

disagrees, 5 somehow disagree and 7 strongly disagree.  

 
 

  
 

 

 

 

 

38%

13%
24%

16%

6%

3%0%

Agree

Somehow agree

Strongly agree

Neutral

Disagree

Somehow

disagree

34%

18%11%

21%

9%
4%

3%
Agree

Somehow agree

Strongly agree

Neutral

Disagree

40%

11%25%

19%

2%

1%

2%

Agree

Somehow agree

Strongly agree

Neutral

Disagree

35%

14%19%

22%

3%

3%

4%

Agree

Somehow agree

Strongly agree

Neutral

Disagree

Somehow

disagree

Figure 13. Digital currency increases the 

chances of money laundering through? 

 

 

Figure 14. Acceptance of digital 

currency will help to increase the 

remittance of Bangladesh? 

 

 

Figure 15. Fraudulence will increase if 

Bangladesh get acceptance of Digital 

Currency? 

 

Figure 16. Lack of Digital Currency in 

Bangladesh creates more cost for 

Freelancer, Web developer, online 

marketer etc.? 

 



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FINDINGS 

Findings from the secondary data of ten digital currencies are: 

 The data of Bitcoin, Binance cash, XRP, Polkadot, and Uniswap are fairly symmetrical 

whereas data of Ethereum are moderately skewed and the rest are highly skewed. On the 

contrary, the kurtosis values of all the variables indicate too peaked. The variables Tether, 

Binance cash, Dogecoin and USD coin imply a leptokurtic distribution since it has heavy 

tails on either side, indicating large outliers. Bitcoin, Ethereum, XRP, Polkadot, Cardano, 

and Uniswap have a mesokurtic distribution and follow nearly normal distribution [N (μ, 

σ2)]. 

 Most of the variables are highly skewed with large outliers and kurtosis column shows 

that all the variables are near to normal distribution and investment regarding these values 

indicates a safe trading. 

By conducting a questionnaire survey this current study considers 175 samples from different 

occupations such as freelancer, online marketer, web developer, and others. They answered several 

questions based on their opinion and expectation regarding digital currency in Bangladesh. This 

study results revealed that: 

 About 92% of respondents agree that digital currency may be helpful for a fast transaction, 

although 85% of people believe that digital currency can be the best alternatives to cash, 

further 77% of respondents think that redemption of digital currency may be easier than 

cash, besides that 91% people do believe that online payments will be easier with the help 

of digital currency. So, the above-mentioned opinions conclude that approximately 80% 

of people are taking digital currency positively. 

Having those positive opinions peoples are also highly concerned about some negative issues 

regarding digital currency- 

 About 67% of respondents express that there is a chance of money scam using digital 

currency, 59% of people are worried about transaction risks, and 60% of respondents show 

concern for the threat of fraudulence through digital currencies.  

For this study purpose, I also included some questions related to the aspect, if Bangladesh 

Government has allowed digital currencies what will the respondents opinion. From these 

questions, I found that- 

 About 87% of respondents think that digital currency will help them in fast transactions, 

77% of people think it will increase remittances, and 68% of people agreed that lack of 

digital currency causes additional cost for the freelancers and so on.  

Having several advantages although digital currency possesses some threats for us.  

 84% of people think that Bangladesh doesn’t have proper technologies for regulating 

digital currencies, further 75% of respondents fear the chances of money laundering in 

Bangladesh and as well 63% people’s fright about fraudulence.  

 

Risks and Challenges of Digital Currency 

Successfully investing or trading in digital currency requires technical skills and at least a basic 

knowledge of how the blockchain works. Listed below are some important things that investors 

should pay attention to in this rapidly changing emerging industry. Some of the common risks 

associated with digital currencies such as loss or destroy private keys, Cyber security risks, Peer 

to peer transactions risk, loss of confidence, rules for preventing or restricting digital currency 

transactions, currency exchange risk, digital currency taxation, liquidity risk, risk of price changes, 

business hour risks, bankruptcy risks, and network slow down risks. The form of digital currency 

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37 

is not without some financial and security issues. To explore the challenges and problems of this 

virtual phenomenon this study has analyzed several studies and observed some digital currency 

sales forums. The main challenges of digital currency may include threats of security, crash 

problem in the system, real currency system, fluctuating value, chances of money laundering. In 

spite of having these issues mentioned in above, the use of digital currency can be promoted as a 

vital medium of the transaction in the future and this implication of the new provoking currency 

cannot be ignored.  
 

RECOMMENDATIONS 

Digital currency responds to real market demand and it is likely to stay with us for some time. The 

following action can be taken by the government to use digital currency in Bangladesh-  

 Bangladesh should allow the Digital transaction platform for transactions to facilitate 

international trade in goods and services. 
 Bangladesh Bank should conduct more studies on digital currency and the application of 

digital currency in the financial sector. 
 Policymakers and regulators should not ignore digital currencies, or try to ban them. Both 

of these extreme methods are wrong. Regulators should consider digital currency as any 

other financial instrument based on its market importance, complexity and associated risk. 

Given its global and frontier nature, it is recommended that such rules be incorporated into 

all jurisdictions. Investments in digital currencies should be taxed in the same way as 

investments in other financial assets. 

 As recently observed in Venezuela, digital currency could provide another opportunity for 

currency replacement. 

 Advanced technology can bring a more transparent, secure and easy way to use a variety 

of digital currencies. This can increase the chances of effective competition between digital 

currency and sovereign currency. 

 

CONCLUSION 

Nowadays, the people are moving towards the digitization of everything. Digital currency is now 

a crying need in the financial sectors of Bangladesh. Digital currency can add an extra 3% of the 

total GDP of a nation and also digitalization of money can solve liquidity problems. Our study 

focused on the possible opportunities of digital currency in Bangladesh and also focused on its 

limitations. Observing the potential of digital currency, the emerging global demand is clearly 

visible, but since 201 Bank, Bangladesh Bank has limited digital currency in my country. Also, 

the survey concluded both positive and negative opinions whereas positive responses are 

noticeable. If we consider the prospects of digital currency of existing countries, this will 

encourage the use of digital currency in Bangladesh. From a detailed study, it’s been clear that 

Bangladesh already has block-chain technology that could run digital currency. Proper initiatives 

by the government can ease the path of using digital currency by utilizing our existing block-chain 

technology. Hopefully, this study will help the government and all other concerned authorities to 

take action regarding digital currency. Due to data limitations from Bangladesh’s perspective, only 

the theoretical part from our countryside has been presented here. Responses of respondents also 

demonstrated that there prevails a positive attitude of general people towards digital currency. 

Further study could be extended by observing the effect of digital currency on microeconomic 

variables. Overall, this study narrated that there are many possible ways to implement digital 

currency by following the countries successfully using this. Modifying some regulatory acts along 

with ensuring the security of transactions digital currency could be an attractive option. The study 



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38 

further states that if the government and policy makers take appropriate action, digital currency 

can have an impact on the financial sector, respectively. 
 

 

ACKNOWLEDGEMENT 

The authors would like to extend their heartfelt gratitude to Institute of Research and Training 

(IRT), Hajee Mohammad Danesh Science & Technology University Dinajpur-5200, Bangladesh 

for providing financial supports. 
 

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Copyright for this article is retained by the author(s), with first publication rights granted to the 

journal. This is an open-access article distributed under the terms and conditions of the Creative 

Commons Attribution license (http://creativecommons.org/licenses/by/4.0) 

https://dx.doi.org/10.1016/B978-0-12-812282-2.00014-0
https://doi.org/10.1016/j.erss.2018.06.009

