Abstract:

The necessity of blockchain applications in every field where data is processed are accepted. This new technology will constitute an important pillar of digital transformation in the coming years. Cryptocurrencies, which are the first application of the blockchain, have attracted attention as a payment, saving and investment tool that has increased in popularity in recent years. Within the scope of the study, how the financial deepening was affected within the framework of various investment opportunities is examined, and the effects of cryptocurrencies and registered financial system investment instruments on financial deepening are investigated. As a result of the model study, it has been revealed that the investment instruments existing in the financial system have a significant long-term relationship with the financial deepening, as a result of the analysis carried out within the framework of the non-linear structure. In particular, the positive effect of traditional investment instruments on financial deepening is high. However, the financial size resulting from crypto money transactions has no effect on financial deepening. This indicates that the financial amount created as a result of these transactions is outside the legal system. For financial deepening it is urgently needed that is established legal infrastructure and operating systems of traditional investment tools which to be redesigned with blockchain technologies and of new financial instruments to be designed with these technologies by the state.

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