Assessing the Potential of Cryptocurrencies in Capital Markets for Enhancing Participatory Governance

Document Type : Original Article

Authors
Morteza Zoqi 1
mehdi qazian 2
mohammad sadiq zoqi 3
1 Bachelor's student, Financial Management, Farabi College, University of Tehran, Qom
2 PhD student, Jurisprudence and Law, Imam Sadeq University, Tehran, Iran.
3 PhD student, Jurisprudence and Law, University of Tehran, Tehran, Iran.
10.22034/jmek.2026.487498.1171
Abstract
The emergence of blockchain technology and cryptocurrencies has transformed the traditional paradigms of capital markets. This study aims to analyze the capacities and challenges of utilizing cryptocurrencies in Iran's capital market, with an emphasis on strengthening participatory governance and democratizing financial processes. In terms of objective, this research is applied, and in terms of nature, it is descriptive-analytical. Data were collected through a systematic review of reputable domestic and international sources, institutional reports, and policy documents, and were analyzed using qualitative content analysis and critical evaluation. The findings indicate that cryptocurrencies and blockchain technology—by eliminating intermediaries, significantly reducing transaction costs, enhancing transparency, and enabling crowdfunding and asset tokenization—provide a suitable platform for public participation, creating new investment opportunities, and narrowing class disparities. By decentralizing financial power and empowering underprivileged groups, this technology significantly contributes to the realization of social justice and participatory governance. However, severe price volatility, the lack of clear legal and regulatory frameworks, and security concerns constitute major obstacles to integrating this technology into Iran's financial ecosystem. Ultimately, it is concluded that cryptocurrencies—provided comprehensive regulations are formulated and technological infrastructure is developed—constitute a strategic and efficient tool for enhancing capital market efficiency. Accordingly, the development of regulatory frameworks, promotion of public financial literacy, support for innovative startups, and strengthening of international cooperation are proposed as practical solutions to pave the way for the flourishing of the national economy and facilitate broader public participation.
Keywords
Cryptocurrency
Capital Market
Participatory Governance
Financial Transparency
Innovative Financing.
Subjects

 

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  • Receive Date 28 March 2025
  • Revise Date 23 December 2025
  • Accept Date 15 February 2026