The state’s role in digital finance: observer, regulator, and participant (Russia’s and foreign countries’ cases)

Abstract

The evolution of the state’s role in digital finance from a passive observer to an active regulator and a full participant in the digital market has been studied. With the rapid tokenization of assets, the traditional financial system is facing unprecedented challenges caused by decentralization, anonymity of operations, large-scale regulatory arbitration, and the threat of laundering illegal income in the new digital environment. A comprehensive analysis of the digital financial instruments structure has been provided, and the potential of their impact on the global and national economies has been assessed. Particular attention has been paid to the risks of decentralized finance, including threats to monetary sovereignty and the challenges of using smart contracts. The paper examines the foreign and Russian experience of the crypto industry regulation, demonstrating a global trend away from strict prohibitions towards creating comprehensive legal regimes. The practical cases of various states have been analyzed, reflecting their strategies of adaptation to new digital technologies. The trend towards involving central banks in the digitalization process by developing their own digital currencies as a legitimate alternative to private crypto assets has been highlighted. It has been concluded that it is necessary to find a sound balance between stimulating technological in novation and ensuring national economic security