Blockchain as the Institutional Substitute for Central Banking in Cryptocurrency Systems A Systematic Review

The emergence of cryptocurrencies has challenged traditional institution-based monetary systems governed by central banks. Unlike fiat currencies, cryptocurrencies operate without centralized authorities and instead rely on blockchain technology to manage transaction validation, record-keeping, and currency issuance. This study examines whether blockchain functions as an institutional substitute for central banking within cryptocurrency systems. Using a qualitative systematic literature review methodology guided by the PRISMA framework, the study synthesizes evidence from peer-reviewed academic literature, working papers, international financial institution reports, World Economic Forum publications, and central bank documents. The findings reveal a clear functional convergence between traditional banking systems and blockchain-based cryptocurrencies. Blockchain replicates key central banking functions such as ledger maintenance, transaction verification, and monetary discipline through decentralized consensus mechanisms and algorithmic rules. However, the absence of a centralized apex authority introduces risks related to monetary sovereignty, regulatory oversight, and financial stability. The study concludes that blockchain-based cryptocurrencies represent an alternative monetary infrastructure rather than merely a technological innovation, carrying significant implications for future monetary governance.