Cryptocurrency: What are the Basics?

Cryptocurrencies have revolutionized how to move value across the internet, which has prompted traditional financial institutions to adapt, regulators to respond, and society to rethink what digital finance can look like.

In our latest explainer by visiting fellow Yaya Jata Fanusie and research assistants Michelle Chen and Ana Stefania Mocanu, we break down:

• What cryptocurrencies are and how they work
• The historical evolution from DigiCash to Bitcoin and beyond
• How wallet systems and blockchain protocols support decentralized finance
• The role of institutions, exchanges, and regulatory bodies in today’s ecosystem
• The diverging regulatory paths of the U.S. and EU and what that means for the future

This explainer offers a clear, accessible overview of the cryptocurrency landscape and where it might be headed.