Impact of cryptocurrency profitability on banking system performance using DID approach

Document Type : Original Article

Authors
masoumeh hezarkhani 1
mahdi beshkooh 2
Kumars Biglar 2
1 M.A. Accuonting Islamic Azad University,Qazvin branch
2 Assistant Professor of Islamic Azad University,Qazvin branch
10.22034/jmaak.2025.23860
Abstract
Many central banks have now developed their own digital currencies in response to the challenges posed by the proliferation of decentralized digital currencies. However, little is known about the effects of introducing central bank digital currencies on existing digital currencies. Therefore, the purpose of this research is to investigate the effect of cryptocurrency profitability on the profitability of the banking system using the DID approach. The results of this study help the banking system and governments to effectively prevent future risks that can be imposed on the banking system and economy of countries and reduce losses. This research was conducted in a period of six years between 1395 and 1400.
The statistical method used in this research is multivariate regression method using panel data and "difference-in-difference". The obtained results showed that with the increase in the profitability of investing in cryptocurrencies, operating profit, gross profit and net profit have decreased. Also, the increase in operating profit, gross profit and net profit of banks is lower in the periods when the profitability of investing in cryptocurrencies is higher than in the periods when the profitability of investing in cryptocurrencies is lower.
Keywords
Profitability of cryptocurrency
profitability of banking system
DID approach
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