Cryptocurrency under the Wave of Financial Technology: Development Trajectory, Impact Mechanisms and Trend Outlook

With the rapid development of financial technology (FinTech), cryptocurrency, as a critical component, has become a pivotal force in reshaping the global financial system. This paper systematically examines the developmental trajectory, impact mechanisms, and future trends of cryptocurrencies, focusing on the differentiated paths of mainstream cryptocurrencies and niche cryptocurrencies. The findings reveal that cryptocurrencies drive payment innovation, blockchain breakthroughs, and financial inclusion through decentralized architecture and smart contract technology. However, challenges such as high volatility, regulatory ambiguity, and energy consumption constrain their widespread adoption. This paper not only uncovers the bidirectional impacts of cryptocurrencies on monetary systems, technological innovation, and policy regulation but also highlights future directions for cryptocurrencies, including global regulatory harmonization, deep technology–market integration, and compliance-driven transformation of niche cryptocurrencies, by integrating cutting-edge cases and policy dynamics. The results provide multidimensional theoretical support for understanding the complexity of cryptocurrencies and balancing innovation with risk while offering practical insights for regulatory technology (RegTech) and the sustainable development of the financial ecosystem.