From Physical Coins to Digital Coins A Case of Cryptocurrency

Abstract

Cryptocurrency is a digital currency that is argued to potentially revolutionize the existing financial system based on fiat money. Previous research within the field of cryptocurrency has largely focused on individual consumers, while ignoring organizations. Thus, a qualitative case study was conducted in order to understand how organizational actors were introduced to cryptocurrency and how companies use cryptocurrency in practice. Data from twelve different organizations was gathered in the form of interviews and physical observations. The findings indicate that the idea of cryptocurrency is translated by human and non-human actors which results in heterogeneous companies and practices. Cryptocurrency exchanges convert cryptocurrency to fiat money and vice versa, fintech companies offer innovative payment solutions, and e-merchants provide goods and services to the market. Cryptonative companies therefore act as carriers of ideas and may be understood as norm promoters. Hence, cryptocurrency encompasses a polysemic character as it is interpreted and used differently in various contexts. Our study further showcases that transacting with cryptocurrency is becoming a fashionable trend as the demand for using cryptocurrency is rising among numerous stakeholders. An ongoing process of normalization is therefore unfolding where transacting with cryptocurrency is claimed to have developed into a taken-for-granted norm in distinct cryptocurrency communities. Instead of replacing fiat money altogether, cryptocurrency can therefore act as an alternative currency in contexts where it is more suitable. A parallel financial system is thus present where cryptocurrency and fiat money complement each other and co-exits. The implications of this paper is that managers and research scholars can utilize our findings to better understand why stakeholders chose to adopt cryptocurrencies, and how companies use it in practice.