The Relationship Between Bitcoin Adoption and the Quality of Institutions

This article examines the relationship between the adoption of bitcoin and the quality of institutions in Eastern Europe and Central Asia (ECA). The authors find that countries with lower quality institutions tend to adopt bitcoin more rapidly.

This is likely because bitcoin offers a way to circumvent corrupt or inefficient financial institutions. Bitcoin is also not subject to government regulation, which can be attractive to people who live in countries with poor rule of law.

The implications of this finding for the future of bitcoin are still unclear. However, it is possible that bitcoin could become more popular in countries with poor institutional quality. This could have a number of implications, including increased financial instability and a decline in the use of traditional currencies.