THE ROLE OF CRYPTOCURRENCY IN ECONOMIC DEVELOPMENT

Halyna Zabchuk, Ihor Pashchuk

Abstract


Introduction. The rapid development of information technology is transforming the modern economic system. This is especially true of changes in the area of calculations and payments, as it is directly linked to economic development and the well-being of the population. Today, with the global economy volatile, changing public sentiment, distrust of financial institutions and interest in cryptocurrencies or virtual money is increasing. Governments and central banks of different countries are often very conflicted about the use of these innovations. Therefore, studying the cryptocurrency market and regulating it as a tool for making payments and payments will reduce the risk of cash flow loss to existing institutions and will have an impact on the financial system. Methods. The following methods are used during the study: analysis and synthesis; abstract and logical (theoretical generalizations and formulation of conclusions); methods of induction and deduction, comparative method and system-structural method have been applied in the study of the legal regulation of cryptocurrencies in different countries, to determine the main approaches to such regulation. Results. The nature, history of the phenomenon, as well as the advantages and disadvantages of cryptocurrency are examined in the article. Features of creation and production of this currency are revealed. The cryptocurrency market is growing rapidly, and the state, which has not adapted the tax code to the current challenges of the digital economy, is underperforming budget revenues, as cryptocurrencies are outside the legal jurisdiction. Today, there are over 2,000 different cryptocurrencies, so it is necessary to develop common standards for the regulation of cryptocurrencies. The legal regulation of electronic currency in different countries is analysed and the prospects of using cryptocurrency in Ukraine are investigated. Discussions. Due to technology improvements, legislation and improved infrastructure, cryptocurrency will play a significant role in people's daily lives, reducing cash flow and thus stabilizing inflation and the monetary system as a whole.

Keywords


monetary system; electronic money; cryptocurrency; bitcoin; cryptocurrency exchange rate

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DOI: https://doi.org/10.35774/ibo2019.03.113

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State Agrarian and Egineering University in Podilya
Ternopil National Economic University