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Analysis of Potential Threats of NFTS (Non-Fungible Tokens) for National Security and Economic Resilience. A Case Study of Indonesia

Author

Listed:
  • Dany EKA SAPUTRA

    (Istanbul Sabahattin Zaim University)

  • Nicoleta ISAC

    (Istanbul Sabahattin Zaim University)

  • Waqar BADSHAH

    (Istanbul University)

  • Cosmin DOBRIN

    (Bucharest University of Economic Studies, Romania)

Abstract

Technological advancements have significantly shaped global society, leading to widespread reliance on technology across various domains. This pervasive influence is particularly evident in the daily lives of individuals, who heavily depend on the digital world and internet connectivity. Crucial sectors such as finance, trade, and the creative industry have embraced the digital realm, with the emergence of Non-Fungible Tokens (NFTs) representing a novel approach for creators to acquire recognition and value for their work. However, this technological progress has also presented opportunities for criminal exploitation, as illicit activities such as money laundering and terrorism funding have transitioned to the digital landscape. This study employs a secondary research methodology to investigate the vulnerabilities associated with the use of NFTs as a medium for money laundering and terrorism funding. The study aims to highlight the potential implications for national economic resilience if these issues are not adequately addressed and securitized. By combining the constructivism theory with the concept of securitization, this work explores how the adoption of NFTs can pose a national concern, affecting both economic stability and security.

Suggested Citation

  • Dany EKA SAPUTRA & Nicoleta ISAC & Waqar BADSHAH & Cosmin DOBRIN, 2023. "Analysis of Potential Threats of NFTS (Non-Fungible Tokens) for National Security and Economic Resilience. A Case Study of Indonesia," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 24(5), pages 696-716, December.
    • Handle: RePEc:rom:rmcimn:v:24:y:2023:i:5:p:696-716
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    References listed on IDEAS

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    1. Christian Pinto-Gutiérrez & Sandra Gaitán & Diego Jaramillo & Simón Velasquez, 2022. "The NFT Hype: What Draws Attention to Non-Fungible Tokens?," Mathematics, MDPI, vol. 10(3), pages 1-13, January.
    2. Muhammad Saleem Korejo & Ramalinggam Rajamanickam & Muhamad Helmi Md. Said, 2021. "The concept of money laundering: a quest for legal definition," Journal of Money Laundering Control, Emerald Group Publishing Limited, vol. 24(4), pages 725-736, August.
    3. Mohammed Al Shamsi & Deborah Smith & Kimberly Gleason, 2023. "Space transition and the vulnerabilities of the NFT market to financial crime," Journal of Financial Crime, Emerald Group Publishing Limited, vol. 30(6), pages 1664-1673, January.
    4. Dowling, Michael, 2022. "Is non-fungible token pricing driven by cryptocurrencies?," Finance Research Letters, Elsevier, vol. 44(C).
    5. Anagnostopoulos, Ioannis, 2018. "Fintech and regtech: Impact on regulators and banks," Journal of Economics and Business, Elsevier, vol. 100(C), pages 7-25.
    6. Vasyl Lagutin & Alina Boiko & Diana Shkuropadska, 2020. "Institutional Conditions For Ensuring Resilience Of National Economy: On The Example Of Ukraine," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 6(3).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    NFT; technological advancements; economic resilience; cybersecurity;
    All these keywords.

    JEL classification:

    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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