IDEAS home Printed from https://ideas.repec.org/a/bpj/pepspp/v31y2025i1p57-89n1004.html
   My bibliography  Save this article

Unveiling the Impacts of Geopolitical Risk on the Transition to the Decentralized Financial Landscape

Author

Listed:
  • Kyriazis Nikolaos A.

    (Department of Accounting and Finance, University of Thessaly, Volos, Greece)

  • Economou Emmanouil M. L.

    (Department of Economics, University of Thessaly, Volos, Greece)

Abstract

This paper examines the dynamic interplay between the global geopolitical risk and eleven decentralized finance (DeFi) digital currencies during the inflationary burden caused by the Russia-Ukraine war episodes. Daily data spanning from 13 October 2021 to 29 October 2024 and the innovative Quantile-Vector Autoregressive (Q-VAR) methodology are employed for estimating the pairwise, joint and network linkages at the lower, middle and upper quantiles. High levels of geopolitical risk are more connected with bull markets of the DeFi assets and new war episodes strengthen this relation. Geopolitical tensions combined with high inflation lead to the GPR becoming major determinant of DeFi markets so contributing to the transition to the digital decentralized cashless financial system. Maker is the leading DeFi asset in this transition and constitutes a promising successor of fiat currencies that suffer from devaluation generated by conflicts.

Suggested Citation

  • Kyriazis Nikolaos A. & Economou Emmanouil M. L., 2025. "Unveiling the Impacts of Geopolitical Risk on the Transition to the Decentralized Financial Landscape," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 31(1), pages 57-89.
    • Handle: RePEc:bpj:pepspp:v:31:y:2025:i:1:p:57-89:n:1004
    DOI: 10.1515/peps-2024-0048
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/peps-2024-0048
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/peps-2024-0048?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    geopolitical risk; decentralized finance; Russia-Ukraine war; inflation; cashless economy; dynamic connectedness;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • F30 - International Economics - - International Finance - - - General
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:pepspp:v:31:y:2025:i:1:p:57-89:n:1004. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.