Artificial Neural Network Insights: Ranking Digital Currencies for Pakistan’s Economic and Green Performance

Abstract

The evolution of money from traditional forms to digital innovations emphasizes the transformative role of digital currencies. This study investigates the transition from traditional money systems to blockchain-based innovations, emphasizing the growing role of digital currencies. It aims to examine the comparative impacts of CBDCs, cryptocurrency mining, and staking on economic performance and green economy. The study uses a quantitative deductive approach, collecting data through online surveys from 438 respondents. Artificial neural network analysis is applied to assess the impact of digital currencies and rank the predictors. The findings highlight CBDCs as the leading driver of economic performance due to their efficiency and inclusivity, while cryptocurrency staking positively impacts both economic and environmental goals. Conversely, cryptocurrency mining poses significant challenges, with its high energy consumption and declining viability. The study recommends adopting CBDCs, promoting energy-efficient staking models, and enforcing strict environmental regulations on cryptocurrency mining for balanced policy development.