Purpose. The aim of the article is to study types of cryptocurrency wallets, their features and advantages. Methodology of research. The following special research methods were used during the writing of the article: direct observation was carried out – collection of information about the number of addresses and the value of Bitcoin crypto-coins; the graphic method of constructing the Lorenz curve is applied; generalization – in the process of formulating conclusions based on the results of the conducted analysis. Findings. It has been established that when carrying out cryptocurrency business in any form (mining, trading, investing), in order to receive or send cryptocurrency coins, it is necessary to register a cryptocurrency wallet, which is a tool that can be used to interact with the blockchain network, and has an address that is an alphanumeric identifier created on the basis of public and private keys (such an address is, in fact, a “place” in the blockchain where it is possible to send cryptocurrencies). It was found that there are a large number of different wallets on the cryptocurrency market, which can be divided into five groups: electronic wallets (web wallets), which are created on cryptocurrency exchanges or online exchanges; desktop cryptowallets, which is a program that is downloaded and run locally on a personal computer and this program can be downloaded from public sites (desktop wallets are of two types: “thin” (crypto wallets enable the crypto user to quickly carry out transactions, however, have a limited amount of options) and “thick” (represent a full-fledged program with a significant amount of functions and, in particular, with the possibility of mining); smartphone versions (mobile wallets) have advantages and disadvantages similar to desktop cryptowallets; hardware cryptocurrency wallets, which is a physical electronic device, uses a random number generator (RNG) to generate public or private keys and can be stored in the device itself, not connected to the Internet (is a type of cold crypto wallet and is recognized as practically the safest crypto wallet); crypto wallets on a paper medium - mediums the size of a banknote, on which a private key in the form of a QR code and a public access key (crypto address) are placed, and in order to carry out transactions with cryptocurrency coins, these codes must be scanned. Originality. The basic requirements for ensuring the optimal security of an economic entity in working with cryptocurrency wallets have been formed, compliance with which will enable: secure access to the cryptocurrency wallet; withdrawal address management; ensuring effective protection of private access keys to the cryptocurrency wallet. Practical value. In the author’s opinion, with insufficient study of the advantages and disadvantages of various cryptocurrency wallets and non-compliance with security rules when registering a crypto wallet and accessing it, restoring unhindered access to wallet assets will be problematic due to the extremely strong protection of cryptocurrency wallets from cyber criminals. The obtained research results will be useful for application in the practical activities of conducting cryptocurrency business. Key words: cryptocurrency, cryptocurrency wallet, crypto wallet, Bitcoin, cold crypto wallet, hot crypto wallet.
Valerii Yatsenko, B. Kovalov, Olexandr V. Kubatko, Mykola Oleksiiovych Kharchenko · 6 authors
Smart contracts are one of the digital technologies that have the potential to significantly alter the way market participants interact. It is emphasized in the research that a smart contract is a specialized computer protocol that allows negotiating parties to exchange assets between themselves: stocks, money, or property without involving a third party as an intermediary. It should be noted that smart contracts also have a wide area for use not only in the financial sector, but also in other sectors of the economy, and the global trend towards digitalization is one of the fundamental drivers of the development of this tool. The most recognizable technology for the operation of smart contracts today is blockchain. It is mentioned that blockchain guarantees the reliability and security of the concluded contracts in terms of their confidentiality, immutability, and permanence. Four basic stages of a blockchain-based smart contract were revealed. It is stated in the article that one of the most promising applications for smart contracts is the automation of the provision of banking services, such as supply chain financing, mortgage lending and small business lending. The automatic implementation of the full lending process, from application to credit risk assessment, mortgage renewals, title transfer, and mortgage servicing and securitization, can be facilitated by sharing borrower information and digital versions of multiple registries and title documents.It is emphasized that smart contracts have a number of advantages over traditional paper-based contracts. It's important to remember that no matter how advanced technology gets, there's always the risk of IT-system vulnerabilities. The future of smart contracts in banking was forecasted. Many banking processes and legal agreements will be substituted by blockchain-based finance solutions in the future; however the shift will be slow. Incumbent banking institutions are unlikely to completely relinquish control of their databases from unknown third parties. Most likely, groups of banking institutions will use authorized blockchains, and customers will only interact with trusted nodes, and not directly with the ledger.
The emergence of cryptocurrencies and blockchain technology, the development of information technologies and international electronic commerce have led to the formation of a new type of civil law contracts, namely smart contracts. The use of mathematical algorithms in the implementation of smart contracts contributes to reducing the costs of organizing business relations, speeding up the implementation of agreements between business partners and increasing the level of security in the process of their cooperation. Investigating the issue of conclusion and implementation of smart contracts, its key elements are given, namely: the parties to the contract, who, on the basis of an electronic digital signature, agree or reject previous agreements; the subject of the contract and the availability of tools necessary for its implementation; an algorithm that accurately describes the conditions for executing a smart contract; a decentralized platform in which the algorithm of the smart contract itself is written, the algorithm in which the specific conditions for the execution of the smart contract are described. The article highlights the program-coordinating, protective, guarantee and security functions of smart contracts. The comparative characteristics of a smart contract with a civil law contract are given. The main advantages and disadvantages of the formation and implementation of smart contracts in Ukraine are grouped. The conclusion of smart contracts in Ukraine entails certain risks associated with the legal regulation of such contracts, in particular when determining their legal status. A technology for the development and signing of a smart contract as an innovative tool for contractual relations has been formed, which provides for the implementation of the following stages: determining business conditions and requirements for a smart contract, choosing a blockchain platform, selecting tools for developing a smart contract, developing a smart contract and auditing smart contract, deploying and signing a smart contract. Smart contracts are successfully used in various fields, such as: international settlements, securities transactions, banking, real estate, international e-commerce, recruiting, insurance, marketing and logistics, public and administrative services, agricultural sector, energy, medicine, etc.
The rapid development of technologies, their impact on the speed of decision-making, and changes in communication methods have a significant impact on the financial sector, namely on payment systems. In addition to the technological transformation of the payment systems themselves, these changes are transforming the requirements of users who want transfers to be faster, safer, and more reliable. On the international market, the processes of change began several years ago, now they have begun to take place in Ukraine as well. This actualizes the need to assess the current state of the payment system in Ukraine, as well as to study those technologies that have the greatest prospects and significant impact on the payment space. For this purpose, in this study, we assessed the current state and trends in the functioning of the payment system of Ukraine. We investigated its main participants, such as the System of Electronic Payments of the National Bank of Ukraine (SEP), PROSTIR National Payment System, the dynamics of the main indicators. This made it possible to identify and substantiate the main problems and obstacles to the development of the payment system of Ukraine. Among the main ones, we attributed: monopolization of the payment market by international payment systems (IPS), insufficient level of consumer protection and shortcomings of legislation on market regulation, insufficient level of payment and financial literacy, especially of certain categories of the population (pensioners). An overview of the main trends in the development of payment systems under the influence of digitalization and innovation made it possible to identify the most significant technologies. Namely, real-time payments (RTP), SWIFT gpi, artificial intelligence, and machine learning, blockchain, and distributed ledger technology (DLT). In our opinion, these innovations themselves will make payment systems safer, more efficient, transparent, and cost-effective. But it is worth noting that the implementation of technologies is impossible without the complete digitalization of all payments and related services. Therefore, the main direction of increasing the efficiency of the functioning of the payment system of Ukraine is the transfer of the majority of payments to digital format. We believe this can be realized through high-quality coordination of all participants in the payment market, clear and timely implementation of the roadmap for changes, ensuring free and easy access to payment services for all users (financial inclusion), increasing the payment literacy of the population, creating conditions for expanding the payment infrastructure.
One of the essential features of the new economy (neo-economy) is the increasing use of information and communication technologies, which led to the emergence and spread of the concept of "digitalization" as a process of digitalization, which is gradually formed within the post-industrial period of economic development. technical progress and innovative management methods, intellectualization of human capital, the use of advanced technologies, accelerated development of knowledge-intensive industries, giving priority to the production of knowledge and services, the mentality of creative, efficient, rational business. The vision of changes in taxation regarding the inclusion of blockchain technologies in the sphere of tax policy and introduction of taxation of tax differences of their exchange rate, as well as digitalization of cryptocurrency detection and taxation processes in Ukraine, which are currently outside the Tax Code of Ukraine. The world has changed significantly over the last decade. We live in an era of accelerating pace due to the rapid development of high technology. Traditional working tools used for years are losing relevance or disappearing altogether. Digital transformation, as a global trend, is steadily penetrating all industries. It affects both the most innovative and completely conservative areas. First of all, the client changes, both internal and external, his expectations, preferences and requirements. It forms a new demand, which must symmetrically correspond to supply. In the conditions of modification of the external environment there is an urgent need to reorient to modern methods of doing business. Only those companies that immediately translate their services into a more convenient and capacious mobile format of interaction with the client, will win the competition. Online retail and Internet banking, booking tickets and tours with aggregators or calling a taxi through mobile applications have become a reality of everyday life. According to Hampleton Partners, an international consulting firm specializing in technology mergers and acquisitions, the annual volume of transactions for the use of blockchain technology alone will be $6 billion. Many classic business models are giving way to technological innovation. The main message for businesses: "Upgrade or disappear", to which the modern tax system must also be adapted.
Babajide Oluwaseun Olaogun, Adaobu Amini-Philips, Ahmed K. Ibrahim
The rapid evolution of digital currencies and blockchain technologies has created opportunities and challenges in the context of global trade. Traditional fiat payment systems, while widely adopted and regulated, often face limitations in cross-border transactions, including high fees, delayed settlements, and limited transparency. Conversely, cryptocurrency and stablecoin-based platforms offer faster and more transparent mechanisms but remain fragmented and lack integration with established financial infrastructures. This proposes an interoperability concept for connecting fiat and crypto payment platforms to facilitate efficient, secure, and cost-effective international trade settlements. The conceptual framework emphasizes a hybrid architecture that bridges fiat processors, crypto wallets, and exchange gateways through an interoperability layer. This layer employs technical mechanisms such as atomic swaps, cross-chain settlement protocols, and smart contract automation to enable seamless conversion, routing, and reconciliation of transactions. Operational considerations, including transaction monitoring, liquidity management, and real-time reporting, are integrated to ensure reliability and mitigate operational risk. Regulatory alignment is central to the framework, addressing anti-money laundering (AML), know-your-customer (KYC), tax compliance, and cross-jurisdictional legal requirements. The model further incorporates risk assessment mechanisms to manage foreign exchange volatility, crypto price fluctuations, and system-level vulnerabilities. Evaluation metrics focus on efficiency, cost-effectiveness, transparency, and transaction reliability, providing actionable insights for stakeholders including financial institutions, multinational corporations, and payment service providers. Additionally, the framework lays the groundwork for future research involving AI-driven predictive analytics, multi-chain decentralized finance (DeFi) integration, and standardized protocols for global regulatory harmonization. By establishing a structured approach to fiat-crypto interoperability, this concept enables faster, more transparent, and resilient international payments. It facilitates strategic decision-making, reduces transactional friction, and supports the evolution of a unified, hybrid global payment ecosystem that aligns technological innovation with operational and regulatory requirements.
The article is devoted to the study of theoretical and practical aspects of the risks that accompany the activities of economic actors in the cryptocurrency market (both mining and trading) at the micro and macroeconomic level at the beginning of the third decade of the XXI century. The risks associated with the functioning of economic entities in the market of cryptocurrency coins and such risks are the following: lack of legal regulation on the cryptocurrency market and insurance of owners of assets stored on crypto wallets; use of malware in order to access assets rotating on the cryptocurrency market; hacking attacks on cryptocurrency wallets and exchanges in order to steal cryptoassets; loss of assets deposited into accounts of cryptocurrency exchanges in case of bank-ruptcy or closure of these exchanges; loss of the password used to access the crypto wallet; loss of a secret personal PIN code, which is the key to access funds deposited into the crypto wallet at the exchange and used to transfer assets (cryptocurrencies or fiat currencies) to other crypto wallets or a bank card; erroneous transaction due to one number or letter mistake when transferring from one crypto wallet to another or error (when entering bank card number), when transferring funds from crypto wallet to bank card, a mistake of one or more numbers is possible and funds will be transferred to the wrong addressee, in both cases it is impos-sible to cancel the transaction and funds are lost irrevocably; significant volatility in the value of cryptocurrencies, because of which an investor can go bankrupt. It was revealed that the functioning of the cryptocurrency market is also associated with risks to the national economy and security: monetary policy (reduction of control over monetary circulation due to the replacement of national fiat currency with cryptocurrency coins and the loss of the central bank monopoly on the emission of money and reducing the country's income from seigniorage due to mining cryptocurrencies), financial stability (because of the threat of the outflow of deposits from the banking system and replacing them with investments in cryptocurrencies, the possibility of replacing traditional banking, as well as the possibility of avoiding taxation and shadowing the economy) and national security. It has been proven that the intensive activity of an economic entity associated with mining, trading, investing or other economic activities in the cryptocurrency market requires significant theoretical and practical training of the individual and patience and faith in the future of cryptocurrency market activity because of the probability of losing savings invested in cryptocurrencies or investments.Keywords: risk, cryptocurrency, cryptocurrency market, crypto coin, crypto wallet, Bitcoin, Ethereum, cyberattack. Статтю присвячено дослідженню ризиків, які супроводжують діяльність ринку криптовалют, як майнінгу, так і трейдингу. Охарактеризовано ризики, з якими пов’язане функціонування ринку криптовалют, і такими ризиками є: відсутність правового регулювання та страхування власників криптогаманців; використання шкідливих програм та здійснення хакерських атак на криптогаманці і біржі криптовалют; утрата активів, розміщених на рахунках криптовалютних бірж, у разі банкрутства чи закриття цих бірж; утрата паролю від криптогаманця чи втрата секретного персонального PINкоду, що є ключем доступу до коштів, розміщених на криптогаманці на біржі; помилкова транзакція (через помилку на одну цифру чи букву) під час переказу з одного криптогаманця до іншого (також під час переказу грошових коштів із криптогаманця на банківську картку можлива помилка на одну чи кілька цифр, і кошти будуть переказані не тому адресанту, якому вони передбачалися); значна волатильність вартості криптовалют. Виявлено, що функціонування ринку криптовалют пов’язане з ризиками для національної економіки: монетарної політики, фі-нансової стабільності, інвестиційної та банківської діяльності. Доведено, що активна діяльність економічного суб’єкта, пов’язана з майнінгом, торгівлею, інвестуванням чи іншою економічною діяльністю на ринку криптовалют, вимагає значної теоретичної і практичної підготовки особи через імовірність утратити заощадження, вкладені у криптоферми чи інвестиції.Ключові слова: ризик, криптовалюта, крипторинок, криптомонета, криптогаманець, Bitcoin, Ethereum, хакерська атака.
The article investigates the origin and development of distributed registry technology – blockchain. It serves as a database and is a reliable form of information storage. The global application of blockchain technology is widespread. Such countries using blockchain as USA, Estonia, Germany, Japan, Great Britain, UAE were analyzed. The technology is used in various industries and spheres of activity: public administration, non-cash payments, financial and production activities, the sphere of various professional services, the sphere of social security, etc. This allows to simplify activities and improve the level of state development. Ukraine is one of the countries that use blockchain technologies and one of those, where these technologies are used at the state level. The most commonly used blockchain in the field of high-tech enterprises (Fintech), at the household level, the blockchain is closely linked to the circulation of cryptocurrencies. Today there are about a hundred companies and projects in the blockchain industry of Ukraine. Among the main projects using this technology are: electronic land auctions, the activity of the State Land Cadaster, the State Register of Real Property Rights and the System of electronic trade in seized property. The main advantages and disadvantages, existing problems, prospects for development, and domestic projects using blockchain technology in Ukraine are identified. Analyzing users’ search queries on the Internet allowed us to conclude the growing interest in these last hours. SWOT analysis was conducted to determine further prospects for the use of the blockchain in Ukraine: the main strengths and weaknesses of the use of the blockchain in various fields are identified, and its potential opportunities and threats are described.
The article considers and investigates the system of decision making in the production processes of an agricultural enterprise. In dynamic conditions of decision-making and operational adjustments, a methodology of operational analysis of the current situation is needed to obtain the necessary results. Decentralized blockchain-based systems are the most promising for doing business. Usage areas of decentralized systems are production and logistics. Globalized production and distribution of agricultural tasks have brought a new milestone in the development and optimization of existing systems. The growing number of issues related to the optimization of internal processes in enterprises, has caused an urgent need for an effective solution to process tracking, which serves as an important tool for quality management and provides adequate protection of the process in the agricultural production chain. Blockchain is one of the main technologies that can provide innovative solutions for tracking agricultural products and food supply chains. Modern agricultural supply chains are a complex ecosystem that includes a number of stakeholders and therefore complicates the verification of important criteria: country of origin, stages of crop development, compliance with quality standards, yield monitoring. Ethereum Smart Contracts can effectively monitor and seamlessly integrate business operations and workflows for a stable supply of agricultural products. The agricultural sector has great potential for modernization and optimization of production, which in general can be a breakthrough for the economy as a whole. It is thanks to him that the country receives a significant flow of currency. After the abolition of tariffs restricting the supply of products to Europe, new markets were opened for production. Demand for agricultural products is high and by modernizing the management system, we will be able to get even better results. Also, the involvement of information technology provides good conditions for productive and confident development of small and medium-sized agricultural enterprises and farms. For example, blockchain technology will provide access to new markets and reduce the bureaucratic burden on the company, simplify communication with suppliers and customers.
The purpose of the paper is to study the specifics of the organization of issue and circulation of digital money by central banks, to summarize existing global expe-rience and assess the potential impact of digital currencies on the conditions of monetary policy, the functioning of the mechanism of money transmission and ensuring financial stability through the implementation of sound decisions of cen-tral banks in the digitalization of finance. Methodology. The study is based on an analysis of the scientific literature and points of view of foreign and domestic ex-perts in the field of digital technology. It is also based on the experience of the European Central Bank, the People's Bank of China, the Bank of England, the Bank of Israel and the National Bank of Ukraine on the implementation of pilot projects for the issue and use of digital currencies, quantitative and qualitative assessment of the impact of new forms of money on monetary policy, the func-tioning of the transmission mechanism, state finance, efficiency of payment sys-tems and payment transactions. In processing the material of the article used a set of general scientific and special methods of research, such as dialectical, his-torical-logical, system-functional and analytical approaches, generalization, scien-tific abstraction and others. The results of the study showed that the proposed digital currencies of central banks should be considered as a new high-tech dema-terialized form of national fiat money. Having summarized the impact of the issue and circulation of digital money by central banks on the main parameters of eco-nomic policy, it can be argued that their use will lead to significant changes in the structure and functions of commercial and central banks, as well as existing na-tional and transnational payment systems. The issuance and circulation of digital currency can significantly affect the nature of central banks' monetary policy, the conditions under which the monetary transmission mechanism functions, and the implementation of fiscal policy. Practical implications. The study revealed the main advantages and disadvantages of using centralized and decentralized models of issue and circulation of digital money by central banks, identified the direc-tions of institutional changes in the development of the banking system and the implementation of monetary policy in a digitalized economy, which will provide a high level of control over all monetary transactions of market players. Val-ue/originality. Using the experience of pilot projects on the issue and circulation of digital currencies of central banks will help to improve the effectiveness of monetary policy, to activate the mechanism of monetary transmission, to ensure the stable functioning of the financial system and reduce the level of shadow economy and corruption.
The paper examines the essence of cryptocurrency as a method of payment has been investigated and identifies its key features (exchange for goods or services; exchange for classic currency; payment for goods and services; minimum level of possibility of abduction; payments, fast and direct transactions; investment asset; business development in cryptocurrency). Different approaches to determining the legal nature of cryptocurrency are analyzed (cryptocurrency as a method of payment; cryptocurrency as a foreign currency; cryptocurrency as a financial asset; cryptocurrency as a financial pyramid). The conclusions of the EU court, the courts of the national system on the use of cryptocurrency as a means of payment are analyzed. The legal nature of cryptocurrency is determined through the prism of world practices of its use. The possibility of using cryptocurrencies in terms of their ability to perform the basic functions of money is analyzed. The paper examines two attempts of legislators to regulate the issues of taxation, legal nature and legal regulation of cryptocurrency in 2019 and 2020. Attention is also paid to the relevant institutions where you can pay with cryptocurrencies, namely: “Spendabit”, “CoinATMRadar”, exchange office in online networks – WebMoney. According to the National Bank of Ukraine, the danger of cryptocurrency transactions is indicated. Examples of the main risks associated with the purchase, sale, exchange and conversion of cryptocurrencies are given (possibility of loss of funds due to theft, possibility of fraud, lack of infrastructure, significant price fluctuations of cryptocurrencies, lack of guarantees for return of invested funds in cryptocurrencies). In conclusion, attention is drawn to the need for legislative regulation of the essence of cryptocurrency for further effective evolution.
Маргасова, В., Ружицький, I., Ткаленко, Н., Шестаковська, Т. · 5 authors
Abstract. The article describes the approaches to defining the essence of understanding «public finance» and «public finance management» in the context of administrative and financial decentralization. A study on the current state of economic development of Ukraine is carried and the public financial management system is analyzed. The dynamics of the ratio of revenues and expenditures of the State and local budgets is shown and the national and subnational levels in the financing of public expenditures are described. The sequence of achieving a new level of welfare of the population is presented and the ways of state influence on local economic development are outlined. The content of the state’s activity on financial resources management and public importance of finances is given. Particular attention is paid to the financial capacity of UTC and the existing positive developments within the decentralization reform in Ukraine. The need to improve the management of public finances was emphasized, as it was evidenced by the size of the budget deficit. The division of budget expenditures by functional classification between the national and subnational levels is presented and the decline of financial independence of subnational budgets is witnessed. An assessment of the level of confidence in financial asset management services of territorial communities based on the calculation of the relevant index is made, and the relationship between the selected indicators (the monetary expenditures of the population; deposits of individuals in investment funds; population savings; volume of capital investments; volume of investments in Ukraine; assets of investment funds) and the level of public confidence in the management of UTC financial assets is researched. Keywords: financial management, public finance, financial capacity of territorial communities, financial assets. JEL Classification H70, H89, R59, Q01 Formulas: 1; fig.: 5; tabl.: 3; bibl.: 20.
In recent years, one of the most frequently discussed aspects in the world of economics has been the use of blockchain technology in economic life and the growing popularity of cryptocurrencies. Both blockchain and cryptocurrencies have incredible potential, and it is only a matter of time before they become part of daily life. The world's largest companies regularly invest in projects related to cryptocurrencies and blockchain. On the other hand, some countries have decided to ban all private cryptocurrencies and instead develop their own concepts of a digital currency issued by a central bank. This paper aims to discuss the issues related to the potential and threats posed by the development of cryptocurrencies and blockchain technology. The analysis involves technical, social and legal aspects linked to the development of virtual money. All the considerations in the paper are based on a critical analysis of the literature on the subject and the descriptive method.
The object of research is software for financial accounting and distribution of funds in a non-profit charitable foundation using smart contracts of the Ethereum platform. The work is aimed at designing and implementing a software application for a charitable foundation, which allows to exclude the misuse of funds of a non-profit charitable foundation. The paper proposes an implementation of the Ethereum smart contract for the software of a charitable foundation. In the app, users can apply for financial aid or make a charitable donation. The request for financial support is confirmed by administrators to avoid abuse by those seeking help. Anyone who has a crypto wallet can become a sponsor by transferring funds from its account to a selected request. The sponsor remains incognito when making a charitable contribution. After collecting the entire declared amount, the funds are automatically transferred to the crypto wallet of the request’s owner. A smart contract and a corresponding decentralized web application for interacting with it were experimentally deployed, and their joint work was tested. To implement the smart contract, the Solidity programming language was chosen; developed smart contract converted to bytecode using remix. The resulting bytecode is ready to be deployed on the Ethereum platform. Decentralized web application for interacting with the contract is implemented using Web3.js, Vue.js. A rough estimate of the cost of deploying a project on the Ethereum platform has been made. The deployment and operation of smart contracts and web applications comes with a certain overhead, which is most dependent on the cost of ether. However, this is a justified price to pay for the transparency of transactions and the shadowing of the turnover of funds of the charitable foundation. The results of the research can be used as a basis for further transformation into full-fledged software with the ability to submit all reporting documents to the relevant government agencies and sponsors.
The object of research is software for financial accounting and distribution of funds in a non-profit charitable foundation using smart contracts of the Ethereum platform. The work is aimed at designing and implementing a software application for a charitable foundation, which allows to exclude the misuse of funds of a non-profit charitable foundation. The paper proposes an implementation of the Ethereum smart contract for the software of a charitable foundation. In the app, users can apply for financial aid or make a charitable donation. The request for financial support is confirmed by administrators to avoid abuse by those seeking help. Anyone who has a crypto wallet can become a sponsor by transferring funds from its account to a selected request. The sponsor remains incognito when making a charitable contribution. After collecting the entire declared amount, the funds are automatically transferred to the crypto wallet of the request’s owner. A smart contract and a corresponding decentralized web application for interacting with it were experimentally deployed, and their joint work was tested. To implement the smart contract, the Solidity programming language was chosen; developed smart contract converted to bytecode using remix. The resulting bytecode is ready to be deployed on the Ethereum platform. Decentralized web application for interacting with the contract is implemented using Web3.js, Vue.js. A rough estimate of the cost of deploying a project on the Ethereum platform has been made. The deployment and operation of smart contracts and web applications comes with a certain overhead, which is most dependent on the cost of ether. However, this is a justified price to pay for the transparency of transactions and the shadowing of the turnover of funds of the charitable foundation. The results of the research can be used as a basis for further transformation into full-fledged software with the ability to submit all reporting documents to the relevant government agencies and sponsors.
Problem setting. An important condition for the financial security of any state is full control over the monetary system, which allows not only to perform tasks in the field of regulation of social processes, but also to predict their further development, to determine priorities. Legislation regulated such types of financial security as budget, tax, banking, monetary, currency, investment, debt and others. Legal relations within these areas of financial activity of the state are clear to its participants, they function in the material "physical" world and the state only corrects them by making changes and additions to existing legal norms and laws. The rapid development of information technology (digital revolution) has penetrated and continues to affect all spheres of society. In IT, there is a direction that works to improve financial technologies. The creation of a virtual currency or cryptocurrency, i.e. virtual money, can be considered a revolutionary discovery in the field of financial technologies. Money is the main component of the state's financial sovereignty, the basis of its existence. The monopoly on the issuance of money and control over its circulation has always belonged to the state represented by central banks and other financial regulators (Ministry of Finance). In essence, the state has an objective need to issue, control and supervise its currency (one of the features of the state in general is the collection of taxes, i.e. money in the form of taxes). Therefore, the issue of protecting financial security in the circulation of virtual currencies is important for any state. The purpose of the research is to analyze the legal regulation of virtual currency in the areas of banking, tax, budget activities of the state and activities related to combating and preventing money laundering. Analysis of resent researches and publications. The essence of such a new financial phenomenon as virtual currency, its functionality, types and principles of operation were studied in the works of domestic scientists M. Kucheryavenko, A. Kud, E. Smychok, A. Ovcharenko, O. Glushchenko, S. Khvalinsky and foreign - Fredrik Schneider, E. Gots. At the same time, there is a separate aspect of this problem – these are the challenges and threats that arise and tend to increase in the financial security of any state, namely - in the banking system, tax and budgetary relations, in the field of money laundering by criminal means. Articles main body. The emergence of a new virtual currency, money that is emerging, existing and disappearing forever in cyberspace - this is in the full sense of the word a new challenge to financial security. Legislatively regulating the circulation of virtual currency in detail is a difficult task, because the very algorithm of its operation, originally laid down by the founders - provides for the purpose of avoiding such regulation. The circulation and operation of virtual currency is based on mathematical schemes and formulas, which gives it stability to any state and centralized regulation. The main advantage of virtual currency is its anonymity. The personal data of the e-wallet owner is kept secret. Sometimes the transactions themselves contain such a complex and confusing pattern of movement, which generally disappears in cyberspace. The circulation of virtual currency is not controlled by the state. Does this pose a threat to the financial security of the state? Really, and serious. After all, an alternative currency and a payment system operating in cyberspace have been created, improved and are gaining momentum. Cryptocurrency becomes a competitor to the national currency of any state. Therefore, it should be noted that the state has grounds to interfere in the regulation of cryptocurrency circulation. What are the direct threats and risks from the existence of a virtual decentralized cryptocurrency system? These threats can be divided into areas of financial activity of the state and identify the most important of them. These are the banking sector, the monetary sphere, the tax and related budget sphere, the legal relations in the field of financial monitoring, the debt sphere. The introduction of digital currencies and blockchain technologies threatens to destroy the banking system in its traditional form. The fact is that virtual currencies and the blockchain allow any entity (physical and legal, etc.) to communicate economically directly, bypassing any intermediaries. And modern banks are such classic intermediaries, in addition to the monopoly type. Problems also arise in the field of tax evasion with the help of virtual currency. Such activity can be taxed only if one condition is met - if users of this network (real taxpayers) will be willing to declare and keep records of their transactions with virtual currencies. And will there be many such people? It is clear that the risks of tax evasion in the circulation of virtual currencies pose threats first in the tax sphere, destroying the state's ability to protect its economic interests, the ability to realize and develop the country's tax potential, and then create threats to budget security. Virtual currencies that can be exchanged for real money pose a threat of their illegal use for money laundering and terrorist financing. They may allow for anonymous transfers if the sender's and recipient's identities are not properly established. In this situation, there is no control body with which to track and detect suspicious transactions. Today, we can give examples of services designed to hide sources of virtual currency, transactions with them and complete anonymity. Yes, anonymizer means "dark networks" and "mixers", which are designed for these types of operations. Their types are the Tor network (anonymous network), Dark Wallet (anonymous network service), Bitcoin Laundry (mixer), Cold Storage, Hot Storage. Conclusions. The emergence of Fintech in information and telecommunication technologies, on the basis of which a system of virtual currencies and decentralized payment systems was developed and implemented, has created a number of serious threats and risks for the world. The main principle of the virtual currency is anonymity, which allows users to completely prevent government and financial control by the authorities, which is a very attractive prospect for many of them. Unregulated cryptocurrency market threatens the financial security of the state in the banking, tax, budgetary spheres and legal relations in the field of money laundering. The only way to counter these threats is to take full control and supervision of the decentralized system of virtual currency circulation. Unfortunately, the creation of an alternative centralized system of virtual currencies, which is subordinated to state and financial institutions, is not able to completely solve this problem.
Ю. Мохова, І. Драган, О. Козирєва, Н. Гавкалова · 5 authors
Abstract. The article examines the mechanisms of process financing informatization of administrative services. The purpose of the article is to determine the sources of funding and prospects for the provision of administrative services in terms of informatization of the public sector of Ukraine. Research methods are comparative analysis of analytical and official statistical data of Ukraine, institutes of international support on the basis of group classification of instruments of financing of Administrative Servics Center (ASC). It is proved that decentralization, development and improvement of the quality of administrative services determine the ASC as a priority area of reforming the system of administrative services in Ukraine. The legal bases of creation and maintenance of functioning of ASC, legal statuses of establishment, principles of process of rendering of administrative services in ASC are defined. The dynamics of the number of administrative service centers and regional features of functioning are analyzed. Sources of financing of ASC (the state budget, regional and city budgets, means of the State fund of regional development, the international projects of technical assistance) are allocated. It is proved that the most common and largest source of funding for informatization processes in the ASC is the state budget (subvention for infrastructure development). The authors propose a forecast model for the creation and development of administrative service centers in Ukraine under conditions of further state funding in appropriate volumes. The necessity of attracting external sources of financing (funds of international technical assistance projects, initiatives of international donors) in the conditions of limited and deficit of the state budget of Ukraine is substantiated. The necessity of modernization of ASC from the point of view of use of IT-technologies is substantiated. Priority areas for comprehensive reform of improving the quality of administrative services are identified: decentralization, simplification, deregulation, institutional capacity development and communication support. Keywords: financing, administrative services, informatization, public sector. JEL Classification D92 Formulas: 0; fig.: 4; tabl.: 1; bibl.: 13.
The article is devoted to the current state and prospects of further legislative regulation in Ukraine of the legal status of cryptocurrency (cryptoassets), primarily in terms of the need to clearly define its place in the system of objects of civil rights. The author emphasizes on the current uncertainty at the national and international level about the legal nature of cryptocurrency that causes gaps in the legal regulation of this phenomenon, which on the one hand allows its free and accelerated development, but on the other - creates significant legal risks for participants of the relevant legal relationships. Based on the comparative legal analysis of the approaches of different countries to the qualification of the legal essence of cryptocurrency, as well as the analysis of the Laws of Ukraine "On Prevention of Corruption", "On Prevention and Counteraction to Legalization (Laundering) of Proceeds from Crime, Financing Terrorism and Financing Spread of the Weapon of Mass Destruction”, the draft Law of Ukraine“ On Virtual Assets ”№3637 of 11.06.2020 adopted as a basis and prepared for the second reading by the Parliament and opinions of national regulators of financial market and securities market the author considers as a debatable approach of Ukrainian authorities to regulation circulation of virtual assets and, in particular, such their type as a cryptocurrency, as an intangible asset (other intangible goods). There is a contradiction of such a qualification in terms of traditional features of intangible assets (pronounced personal nature, the impossibility of the existence of such goods in isolation from the subject of law without his consent, lack of property and economic content) and the economic purpose of cryptocurrency as a mean of payment. In this regard, the author concludes that there should be an expediency of classifying this object of civil rights as a special (private) form of money, for which he proposes to carry out a more detailed civil law classification with a division into fiat (cash, non-cash, digital) and private (cryptocurrencies and electronic money).
Nataliіa Teslіuk, O. Zhulin, Iaroslava Nazarenko, Alexandra Kuimova
У статті проаналізовано фінансові інструменти на віртуальному ринку фінансових послуг. Визначено термін «криптоактив», відмінності між криптовалютою та електронними грошима, проаналізовано ринок криптовалют за рейтингом, наведено основні переваги та недоліки на сучасному етапі розвитку віртуального фінансового ринку. Ринок криптовалюти нестабільний, але постійно удосконалюється завдяки фінансовим інноваціям, що ускладнюють економічну природу цього явища. Цей вид віртуального активу прогресує і набуває правового статусу в певних країнах світу, політикою яких є створення інновацій як основного інструменту розвитку суспільства. Об’єкт дослідження – процес функціонування та розвитку криптовалюти на фінансовому ринку. Мета дослідження – аналіз функціонування криптовалют і перспективи подальшого їх розвитку на віртуальному ринку фінансових послуг. У ході дослідження визначено терміни «критоактиви» та «критовалюта» проаналізовано основні переваги та недоліки використання криптовалют. До основних позитивних аспектів відносяться: анонімність персональних даних власника електронного гаманця, відкрита історія трансакцій, криптовалюта може використовуватись не тільки як платіжний засіб, а і як інвестиційний інструмент. Основні негативні аспекти: значна волатильність, енергоємність, банкротство криптобірж, відсутність законодавчого регулювання, високий ризик хакерських атак та ін. Проаналізовано, що увага до криптовалют з боку інституційних інвесторів значно посилилася завдяки удосконаленню негативних факторів збоку розробників. Наразі мережа криптоматів та торгових точок розширюється, відомі платіжні системи приймають відомі криптовалюти для оплати товарів та послуг, деякі компаній приймають криптовалюту в якості платежу за свої товари та послуги. Висновки – розповсюдження та використання криптовалют вимагає чіткого регулювання, яке передбачатиме встановлення відповідної термінології та впровадження нормативної бази. Це призведе, у свою чергу, до збільшення довіри з боку користувачів, до кращого розуміння специфіки віртуального ринку та зменшення таких негативних явищ, як шахрайство та маніпуляції, банкротство критовалютних бірж, втрата грошей суб’єктами ринку.
The emergence of “virtual currencies” is extremely recent, with a history of only 13 years. Being an ultra-new economic tool, it arouses interest and effervescent reactions, especially in terms of definition, but also about the cumulative effects it has begun to produce in the economic world. The subject also becomes controversial due to the fact that, being an economic instrument of absolute novelty, it is reflected in the legislation of very few countries in the world. One of the definitions determines as virtual currency – the digital representation of the value that is not issued or guaranteed by a central bank or a public authority, which is not necessarily linked to a legal currency and which does not have the legal status of the currency, but which can be accepted by natural or legal persons as a means of exchange and which may be transferred, stored and traded by electronic means. The evaluation of cryptocurrency publications has shown that most of them are related to attempts to establish legislative agricultural work for the operation of virtual currencies. The functions of the cryptocurrencies that we have defined are: the exchange and payment function, the hoarding function, the investment function and the attraction of funds necessary for the activity. Thus, we established that virtual currencies, as well as fiduciary ones, have the role of: means of payment, means of accumulation, means of capitalization and investments. Likewise, through this research we managed to highlight the main features and peculiarities of cryptocurrencies. Among the basic characteristics of cryptocurrencies we highlight: the high degree of security, maximum speed of transactions, full freedom from financial organizations, irreversibility of operations, full anonymity of transactions, open source, they can be ”mined”. Another approach was to determine the advantages and disadvantages and risks of using cryptocurrencies. The main advantages of using cryptocurrencies are related to its functions an caracteristics, such as: it represents a real alternative to classic banking services, market freedom, privacy of transactions, high speed of trnasactions, alternative payment methos, increasing the customer base etc. On the other hand there are some disatvantages. They are related mosly with the following risks: legal uncertainty, market volatility, low degree of acceptance, unsecured crypto wallets, risks related to use for illegal or criminal purposes, money laundering risks. Taking in consideration the global trend of the digitization of the society, the share and importance of fiat currencies will tend to decrease for the benefit of virtual currencies. Cryptocurrencies are becoming a real alternative to physical currencies, but its main disadvantage is that the public autorities are missing controlling it yet. Even so, in the nearest future the money could become digital figures.
Стаття присвячена дослідженню проблематики створення та розвитку децентралізованої фінансової моделі та можливості її використання для кредитування на основі технології криптовалют. Метою статті є дослідження особливостей децентралізованої фінансової моделі для кредитування на основі технології Ethereum. Технологія децентралізованих програм для фінансування (DeFi), що дозволяють перетворювати традиційні фінансові послуги у послуги, які надаються без посередника за допомогою смарт-контрактів на блокчейні, поступово розширює власні можливості. Децентралізація усуває необхідність в довірених третіх сторонах, зменшуючи ринкові можливості посередників, отримані завдяки інформаційній перевазі, яку вони мають у порівнянні з учасниками угоди, використовуючи їх посередницькі послуги. На даний час більшість фінансових послуг DeFi складається з монетарно-банківських послуг; надання платформ однорангової позики; забезпечення вдосконалених фінансових інструментів, таких як децентралізовані біржі, ринки деривативів. Застосування технології блокчейн у фінансовому секторі привело до створення системи, здатної відтворювати стандартні фінансові послуги та пропонувати інноваційні рішення для розвитку цієї галузі. Система блокчейн реалізована Ethereum, саме тому вона є дуже ефективною для системи транзакцій, ніж інші транзакції, оскільки вона має технологічні особливості смарт-контракту, які пов’язані з минулою транзакцією. Пошук подальших варіантів використання децентралізованих фінансів, на основі можливостей блокчейну, має вирішальне значення для створення відкритих фінансових продуктів. У разі успіху система децентралізованих фінансів розширить можливості надання кредитних ресурсів на основі технології Ethereum з покращеними умовами.
<p style="text-align: justify;">Changes in the payment systems of some countries, initiated by the use of cryptocurrencies, have opened up many dilemmas in the economic literature. Although knowledge of this phenomenon has not been yet sufficiently crystallized, some states managed to regulate its use. In this paper, we investigate whether cryptocurrencies can be considered аs а currency, which has drawn increasing attention from regulators who are concerned about tax, insurance and other consequences related to the legal treatment of cryptocurrencies. The subject of the paper is to analyze the history, characteristics and level of cryptocurrency regulation in the world. The aim of the paper is to analyze the possibilities for regulating cryptocurrencies in the Republic of Serbia through the analysis of countries where the use of cryptocurrencies is legal.</p>
The paper is devoted to the analysis of the practice and prospects of application of blockchain technology to provide the exercise of payment services. In particular, it is noted that this technology can be used in the architecture of payment systems, as well as as the technological basis of payment instruments. In addition, blockchain can be used in areas directly related to payment services (for example, for customer identification, currency exchange operations, etc.). The author defines a number of concepts, in particular “peering payment system”, “mining”, “cryptocurrency wallet”. The paper highlights the necessity to differentiate between the actual peering payment systems (networks) and payment services operating with the use of blockchain technology. The latter can be decentralized in terms of how information is transmitted, but not managed. The presence of an entity controlling, administering or otherwise managing individual processes within such a system does not allow it to be regarded as truly decentralized — peering networks are based on the equality of all participants. According to the results of the study, it is concluded that the blockchain technology indeed has a high potential of practical application in the payment field. Meanwhile, currently a cryptocurrency wallet has significant limitations of practical application for the organization of mass payments. Therefore, this technology should not be expected to replace traditional payment institutions in the nearest future. It can be predicted that blockchain will be just implemented into the existing payment infrastructure, rather than replace it completely.
Introduction. The active development of the international economy leads to the emergence of new financial instruments, which expands the capabilities of economic entities in carrying out efficient economic activities. However, cryptocurrency coins have become a relatively new, widely used financial instrument used by economic entities to increase the efficiency of payments and investments. The cryptocurrency market is growing rapidly and its capitalization is estimated at trillions of dollars. The main purpose of the article is to study the impact of cryptocurrencies on the international and national micro- and macroeconomics in the third decade of the XXI century. Methods. The theoretical and methodological basis of the article is the fundamental provisions of modern economics, the work of scientists. In the process of research, in particular, the following methods were used: analysis - to study the object and subject of research; abstract and logical (theoretical generalizations and formulation of conclusions on the impact of cryptocurrencies on national and international micro- and macroeconomics). Results. It has been established that cryptocurrency mining and trading has become an objective reality in the second decade of the XXI century, and at the beginning of the third decade already has a significant impact on the national and international economy, competing significantly with fiat money and, as far as possible, filling niches, filled fiat money. It has been proven that mining and trading of cryptocurrencies causes both positive and negative effects at both micro and macro levels, both in the international and national markets. It is noted that the circulation of cryptocurrencies is carried out mainly without legislative regulation (except for El Salvador, the United States and several other countries); however, self-regulation through the “invisible hand of the market” is quite effective. As long as there is no significant regulation of the cryptocurrency market, in our opinion, the cryptocurrency market will develop extremely actively, and its regulation by government agencies may hinder its development. Discussion. The obtained results can be used to expand knowledge about certain aspects of the impact of “mining” and circulation of cryptocurrencies on the activities of economic entities at the micro and macro levels. Keywords: mining, cryptocurrency, Monero cryptocurrency (XMR).