Customer value theory and cryptocurrency regulation

Abstract

Cryptocurrencies are the product of disruptive technologies which have the potential to unsettle the global banking sector and, as a result, state-controlled economies across the world. Similarly, their inherent volatility and the relatively unregulated markets within which they are currently traded present a multiplicity of risks from which consumers will increasingly require protection as their popularity continues to rise. In seeking to inform any regulatory intervention, lawmakers are likely to refer to – amongst others – a range of economic, legal, political, sociological, and technological theories to understand the nature and extent of the relevant risks. Customer value theory from the marketing discipline offers an important perspective, which to the authors’ knowledge has not yet been considered. This paper presents the findings of an interdisciplinary, theoretical study, which explored the application of customer value theory to cryptocurrency and its regulation. It is argued that customer value theory offers explanatory insight into the nature of cryptocurrency itself as well as the risks that it poses to consumer traders, and that it thereby constitutes a useful lens for lawmakers as they seek to regulate in this emergent area.