What does this research mean for the field?

Financial disintermediation, such as the persistent use of cash and peer-to-peer Bitcoin, is driven by a combination of weak state capacity, underdeveloped infrastructure, and autocratic governance that incentivizes citizens to exit formal finance. Novelty: ClaimNovelty.NOVEL_FINDING. Consensus alignment: ConsensusAlignment.ESTABLISHES_NEW_DIRECTION.

What question did this study set out to answer?

To examine why fintech expansion is accompanied by persistent financial disintermediation via cash and Bitcoin, focusing on the roles of state capacity, infrastructure, and political regimes.

August 29, 2026Studies in Comparative International DevelopmentOpen Access

The Political Economy of Financial Disintermediation: Understanding Fintech Adoption and Inclusion Through Cash and Bitcoin Usage

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Authors

GCGhita ChraibiUniversity of Virginia

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Implication

Panel analysis reveals drivers of financial disintermediation across global populations, highlighting institutional barriers that constrain fintech adoption.

Key Points

To examine why fintech expansion is accompanied by persistent financial disintermediation via cash and Bitcoin, focusing on the roles of state capacity, infrastructure, and political regimes.
Conducted a two-way fixed effects panel analysis of cash dependency across 158 countries from 2001 to 2020 (n = 2,760).
Analyzed the choice between peer-to-peer versus exchange-based cryptocurrency channels across 161 countries from 2019 to 2024 (n = 921) using Chainalysis blockchain intelligence data.
Tested theoretical robustness against alternative estimators, including Callaway and Sant’Anna staggered difference-in-differences.
Weak state capacity and underdeveloped banking infrastructure significantly elevate disintermediation by lowering tax enforcement and increasing the cost of formal intermediation.
Autocratic governance drives demand-side exit from formal financial institutions, systematically predicting higher cash reliance in broad populations and elevated peer-to-peer crypto adoption among Bitcoin users.

Cite This Study

Ghita Chraibi (2026) studied this question.

synapsesocial.com/papers/6a9299c88e5d7d1fc0c12017 https://doi.org/10.1007/s12116-026-09517-2

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Implication

Panel analysis reveals drivers of financial disintermediation across global populations, highlighting institutional barriers that constrain fintech adoption.

The Political Economy of Financial Disintermediation: Understanding Fintech Adoption and Inclusion Through Cash and Bitcoin Usage

Discussion

Member takes

Implication

Key Points

Cite This Study

The Political Economy of Financial Disintermediation: Understanding Fintech Adoption and Inclusion Through Cash and Bitcoin Usage

Discussion

Member takes

Implication

Key Points

Cite This Study

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