Aziz Hafis Ogly Safarli, Murad Azer Ogly Mamedov, Aleksei Ivanovich Bolonin
The article examines the genesis and technologies of the cryptocurrencies, presents data from leading cryptocurrencies platforms for the purpose of in-depth analysis of the current market situation. In recent years, there has been a significant growth of the cryptocurrency market, the development of new technologies and products on the market, as well as an increase in its influence on more traditional financial markets. In this regard, the issue of regulating cryptocurrencies at the national and supranational levels is becoming increasingly relevant. The subjects of the research are the international cryptocurrency market, the technology of the distribution register, the experience of various countries in regulating the issuance and circulation of cryptocurrencies. Based on the results of the study, the authors identified current trends in the global cryptocurrency market. According to the authors, it is practically impossible to completely ban the issue and turnover of cryptocurrencies by the state due to their decentralized nature. Regulation of the cryptocurrency market is a new source of funds for the tax budget, and will also contribute to the further development of the field of digital technologies. In the article, the authors investigated the approaches a number of countries in the direction of regulation and legalization of the cryptocurrency market, which can be used as an example in the process of creating a regulatory framework for the Russian cryptocurrency market.
Aleksei Aleksandrovich Ruban, Alina Viktorovna Krivopuskova, Dmitrii Sergeevich Kleimenov
Currently, the popularity of cryptocurrencies as an investment asset is growing, bitcoin is the most attractive among them, since it is the oldest instrument in this market. In this paper, the authors examined the advantages and disadvantages of the cryptocurrency in question, the history of its creation. The analysis of the effectiveness of the inclusion of the digital asset in question into the structure of an investment portfolio consisting of assets of various classes was carried out using the Harry Markowitz portfolio theory. The relevance of the chosen topic is confirmed due to the popularity of digital assets in modern conditions. The existing gaps in the legal regulation of their turnover are gradually being filled, and institutional investors are increasingly investing in the purchase of cryptocurrencies. The results of the study indicate a significant increase in the profitability of the investment portfolio after the addition of bitcoin, which can in some proportion become an effective substitute for investments in the stock market of American companies. The analysis revealed a high degree of mutual correlation between the dynamics of the bitcoin price and the S&P 500 index. The construction of the regression equation and the calculation of the determination coefficient give reason to believe that the dynamics of the S&P 500 index by 92.25% correlate with fluctuations of the price of bitcoin, which is due, apparently, to the attractiveness of the new and tempting investors with the profitability of the cryptocurrency market. The results obtained, on the one hand, indicate the possibility of using technical and fundamental analysis tools to work with crypto assets, on the other hand, the convergence of the behavior of this type of asset with changes in traditional market benchmarks.
Objective. The aim of the work is to determine the prospects for the development of digital financial instruments in the management of social and economic systems. Method. The comparative analysis of the results of an anonymous survey using interactive multi-user social networks was used as research methods in the work. Result. The factors and key parameters influencing the development of cryptocurrency mechanisms are revealed, the advantages and disadvantages of using digital tools are identified. Suggestions for the management of cryptocurrency instruments and recommendations for improving the reliability and development of digital instruments in the financial and digital environment are given. The results of the analysis of a survey of 1121 respondents on the topic of using cryptocurrencies are presented. The results of the study showed that the most commonly used cryptocurrencies are Bitcoin and Ethereum, with a significant proportion of respondents preferring digital activities such as mining and trading. At the same time, a significant number of respondents believe that the future development of digital financial instruments is directly dependent on the legitimization of cryptocurrencies by the state and improvement of blockchain technology. Conclusion. The development of cryptocurrencies cannot be assessed unambiguously. With the development of cryptocurrency instruments, a number of threats arise, which include significant volatility, the presence of legislative restrictions on their use, and the inability to withdraw operations. The further development of cryptocurrencies should be associated with the legal regulation of their distribution, both at the national and international levels, which will ensure the determination of their legal status among other monetary units. It is also necessary to carry out a phased introduction of cryptocurrencies into payment systems for cash settlements, which should be carried out on the basis of the organization of the official circulation of cryptocurrencies and blockchain technology.
В эпоху цифровизации человечество использует актуальные концепции и технологии, которые помогают упростить жизнь. Развитие информационных технологий оказало значительное влияние на экономическую трансформацию, и привело к появлению электронных денег. Достижения в информационных технологиях облегчили их транзакцию, возникла новая система – криптовалюта, не нуждающаяся в финансовых посредниках. Криптовалюты существуют уже более десяти лет, и их популярность стремительно набирает обороты. Одна из современных технологий, используемых для транзакций с криптовалютами, преимущества и недостатки которой до сих пор неясны, называется блокчейн. По мнению одних экспертов, это технология будущего, но по мнению других – это угроза конфиденциальности пользователей. В статье предпринята попытка обозначить отношение пользователей к криптовалютам. Так как природа криптовалюты неконтролируема, она вызывает множество вопросов у экспертов в данной области. В этом исследовании был произведён систематический библиометрический анализ, в котором, основываясь на мнениях экспертов в области криптовалютного рынка, представлены положительные и отрицательные стороны использования криптовалют. Статья будет полезна исследователям, которые изучают вопросы криптовалюты и блокчейна в области экономических наук. In the era of digitalization, humankind uses up-to-date concepts and technologies that allow simplifying life. The development of information technology has had a significant impact on the economic transformation, and led to the emergence of cyber money. Advances in information technology facilitated the money transaction, and a new system emerged, that is cryptocurrency which does not require financial intermediaries. Cryptocurrencies have been around for over a decade and their popularity is still growing. One of the modern technologies used for cryptocurrency transactions, the pros and cons of which are unclear to date, is blockchain. Some experts claim this is the technology of the future, while others say it is a threat to user privacy. This article attempts to outline users' attitudes to cryptocurrencies. Since the nature of cryptocurrency is uncontrollable, it raises many questions from experts in the field. Based on their views, this study employs a systematic bibliometric analysis showing both positive and negative aspects of using cryptocurrencies. The paper could be useful for researchers specializing in cryptocurrency and blockchain issues in the field of economic sciences
Introduction. The transition to digital technologies stimulated the emergence of new accounting objects in the form of digital assets whose features are problematic for being displayed in a rather tightly regulated system of accounting and reporting standards. In the context of emerging new ways of using crypto assets in business practice and increasing the volume of transactions with them, accounting has problems with displaying digital assets in part of confirming their controllability, their assessment at various stages of the life cycle, and identification of participants of cryptocurrency transactions. The paper deals with impact of economy digitalization on accounting methodology in the context of the Industry 4.0, in particular, the prospects for a separate display of digital assets in financial statements. Purpose. This article is aimed at the systematic substantiation of the exclusive status of digital assets as a fundamentally new accounting object in order to further develop, on this basis, the strategy for the development of their accounting and displaying them in the companies’ reporting. Methods. The paper contains a critical analysis of scientific publications devoted to the essence, status and features of the digital assets’ use, as well as the formation of information about them in the accounting and financial statements. The authors have carried out a bibliometric analysis of the frequency of use of terminology in the field of digital assets with the help of special software (VOSviewer and Google Trends). Results. The authors have developed a taxonomy of digital assets based on the use of distributed ledger technology and cryptography. The paper also explores the issue of the differentiated application of existing valuation bases for various types of digital assets. The article systemizes approaches to the deanonymization of participants in transactions with crypto assets which are used to control their origin and the legal regime of applying, for the purpose of rational organization and accounting of them. Conclusions. There is a need to introduce a separate standard designed to regulate accounting and display of digital assets in financial statements, in order to provide stakeholders with relevant information in the process of making managerial and investment decisions.
Intellectual contracts based on blockchain technology improve the efficiency of supply management of an automobile enterprise by optimizing the transactional costs of supply logistics. The present research featured KAMAZ PTC. The goal was to develop an interaction mechanism for all participants of an intellectual contract in supply activities. The article includes a review of Russian and foreign publications about intellectual contracts in various business spheres, supply management efficiency, optimization of transactional costs, and blockchain technology. The study made it possible to build an interaction mechanism of the parties involved in a blockchain intellectual contract. It also revealed a pattern of changes introduced to the intellectual contract at different stages of interaction between the initiator and suppliers. The authors also highlighted the difference between smart contract and intellectual contract. An intellectual contract appears as a logical development of a smart contract and allows the sides to change the terms. The party interaction mechanism can improve the supply efficiency as it optimizes the magnitude of transactional costs.
Summary. Today, the relevance of cryptocurrency has risen sharply again. The cryptocurrency market has increased and is in no hurry to fall. However, this topic is still ambiguous and surrounded by many myths. Before becoming a stable means of payment, the cryptocurrency began to resemble financial instruments. After all, it is more common to invest in cryptocurrency than to use it when shopping. Despite many different types of cryptocurrencies, they have very similar shortcomings that may prevent them from continuing to emerge in the financial market. To understand the place of blockchain technology among financial instruments, it is necessary to delve into the technical features of this phenomenon and identify possible solutions to the problems underlying the underlying technology and philosophers of the decentralized payment system. The main concern and, at the same time, the advantage of cryptocurrencies is their limited number. In this way, the digital currency acquires values such as gold or silver. This paper raises the question of the viability of digital money as a financial instrument and a means of payment. After all, it is assumed that after extracting the maximum amount of a cryptocurrency, it will cease to exist as a blockchain will no longer be supported by miners. The paper proposes a scientific approach to determining the place and role of cryptocurrency as a payment instrument. The emergence of the cryptocurrency market is considered because it is regarded as a new stage in the development of financial relations. Existing types of cryptocurrencies are analyzed, which are improved examples of previous versions. However, this topic is ambiguous because in many countries, the virtual currency has an inaccurate legal status or no legal status, which is why the life cycle of cryptocurrencies was studied, on the example of the most successful today. To determine the place of cryptocurrencies in the system of financial instruments and their properties, the main idea, and basis of the technical features of this phenomenon were analyzed.
Светлана Магомедовна Догучаева, Svetlana V. Zubkova, Yuliya Valentinovna Katrashova
This article identifies the main directions of modernization of the public supply chain management system in the aspect of digitalization of the economy. The need for the im-plementation of the blockchain is justified and the most appropriate type of this network is selected, taking into account the tasks that this technology should solve. The principle of operation of the distributed registry and its characteristics are considered. The levels of access to the blockchain network are determined depending on the roles of participants in the public procurement process. Special attention is paid to smart contracts, on the basis of which trust relations are formed between the parties to the transaction. The authors also used statistical data to assess the socio-economic benefits and identify the main ad-vantages and risks of implementing blockchain technology in the public procurement management system. Smart contracts based on blockchain can provide financial stability, reduce the cost of storing and transporting documents. Thanks to the blockchain, it will be possible to avoid corruption. The blockchain ensures the reliability of the conclusion of the contract and guarantees its execution on the basis of smart contracts. Implementation of blockchain within public procurement system will require investments not only into software development and digital infrastructure, but also into cybersecurity.
Scientific article is devoted to the study of advantages and disadvantages of cryptocurrency development in the world financial market. The urgency of the study is due to the high market capitalization of the cryptocurrency, which makes it a component of the financial arena of international scale. The article analyzes the dynamics of the cryptocurrency market development, its problems and benefits for states. The result of the study is the conclusion that cryptocurrencies have a greater number of different problems that hinder their development, their solution can be the regulatory framework for their regulation
Anna Khvorostyanaya, I. V. Rozhdestvensky, A. V. Филимонов
Abstract. One of the strategic priorities for the development of large companies is the growth of innovation, as they provide companies with long-term competitive advantages. Working with third-party developers allows corporations to get the development they need at a relatively mature stage, when the main technical risks have already been removed. At the same time, corporations are not ready to finance early-stage developments, while venture investors in Russia mainly finance projects already at the revenue stage. In this regard, the main purpose of this article is to consider a possible mechanism for solving this problem using digital platforms based on distributed ledger technology in the part that relates to smart contracts, as well as a platform for semi-automatic examination of projects using the technology readiness assessment methodology. The creation of digital platforms is due not only to the growth of corporate interests, but also to the increased development of the global and regional trend — digitalization. The article presents and summarizes various digital platforms that can be used by companies to develop a funnel of innovative proposals, that is, industrial acceleration. For this purpose, the methods of analysis and synthesis, deduction and induction are used in the article. The key result of this article is the identified tools of digital platforms, which can reduce the systemic and non-systemic risks of strategic investment. The platform for accelerating projects based on distributed ledger technology makes it possible to achieve transparency of transactional operations by fixing the client path, and the platform for assessing the level of readiness and auditing projects based on the methodology for assessing technological readiness solves the problem of balancing the interests of different market actors and optimizes the process of building tactical tasks. These models of digital platforms can be practically implemented in the activities of various market actors and make it easier for them to determine strategic goals and select quantitative and qualitative tasks for their implementation. Further research may be devoted to the analysis of the best practices for the creation and development of such digital platforms, strategic typology, and the study of industry effects of the use of digital platforms.
Open access
Economic and Technological Developments in Russia
Regional Economic Development and Innovation
Digitalization and Economic Development in Agriculture
The purpose of the article is to clarify the understanding of the new business conditions, the so-called new normal, as part of the study of approaches to assessing financial stability in financial markets. Main results: the list of main factors that have a particularly significant impact on financial stability in financial markets has been clarified; some results of digital transformation of financial markets are characterized; the possibilities of integrating SPFS and CiPS were evaluated; clarified and supplemented the proposals of the regulator on the introduction of mechanisms for automated detection of sources of spread of illegal activities; on the basis of fragmentary factual material, assumptions were made about the nature of the relationship between the systems of centralized and decentralized finance; substantiates the proposal on the need to create a legal regulated cryptocurrency market in the Russian Federation in order to reduce the scale of the emerging shadow market and to accelerate the process of legal support for its functioning. The significance of the article is determined by the main conclusion about the need to change approaches to assessing financial stability by taking into account the high transitivity of modern economic systems of centralized and decentralized finance and new business conditions (conditionally denoted, among other things, by the acronyms SPOD, VUCA, BANI, etc.).
Open access
Economic and Technological Developments in Russia
Economic Development and Digital Transformation
Economic, Social, and Public Health Issues in Russia and Globally
Ігор Брітченко, Олена Михайлівна Пахненко, Pavlo Mykolaiovych Rubanov, Olga Girzheva · 6 authors
Scientific sources demonstrate different attitudes of researchers to cryptocurrencies because they treat them as a category of currency, virtual money, commodity, etc. Accordingly, the relation to the valuation and risk of cryptocurrency as an investment object is different. The purpose of the article is to identify cryptocurrency value formation factors and determine the risks of investing in cryptocurrency. Cryptocurrency is simultaneously considered a currency, an asset with uncertain income, and a specific product, the price of which is determined by the energy costs for mining new cryptocurrency blocks. Thus, the paper examines the risks of investing in cryptocurrency from several positions. First, the study identifies the factors of formation of the value and risk of cryptocurrency as ordinary money based on comparing cryptocurrency with traditional money. Unlike traditional money, cryptocurrency is not tied to the economic performance of a particular country; also, central banks do not control or regulate their mining. Instead, the cryptocurrency emissions depend on the computational capacity of the equipment used for their mining. As a financial asset, cryptocurrency can be a “financial bubble” because their value increasing often exceeds the cost of mining. On the other hand, given the emergence of cryptocurrency as a phenomenon of the information economy, the paper analyses the impact of specific technical features (cryptographic hashing algorithm, the complexity of creating new blocks, the technology of verification of mining operations, etc.) on the risk of investing in cryptocurrency assets.
Research background: The Russian invasion on Ukraine of February 24, 2022 sharply raised the volatility in commodity and financial markets. This had the adverse effect on the accuracy of volatility forecasts. The scale of negative effects of war was, however, market-specific and some markets exhibited a strong tendency to return to usual levels in a short time. Purpose of the article: We study the volatility shocks caused by the war. Our focus is on the markets highly exposed to the effects of this conflict: the stock, currency, cryptocurrency, gold, wheat and crude oil markets. We evaluate the forecasting accuracy of volatility models during the first stage of the war and compare the scale of forecast deterioration among the examined markets. Our long-term purpose is to analyze the methods that have the potential to mitigate the effect of forecast deterioration under such circumstances. We concentrate on the methods designed to deal with outliers and periods of extreme volatility, but, so far, have not been investigated empirically under the conditions of war. Methods: We use the robust methods of estimation and a modified Range-GARCH model which is based on opening, low, high and closing prices. We compare them with the standard maximum likelihood method of the classic GARCH model. Moreover, we employ the MCS (Model Confidence Set) procedure to create the set of superior models. Findings & value added: Analyzing the market specificity, we identify both some common patterns and substantial differences among the markets, which is the first comparison of this type relating to the ongoing conflict. In particular, we discover the individual nature of the cryptocurrency markets, where the reaction to the outbreak of the war was very limited and the accuracy of forecasts remained at the similar level before and after the beginning of the war. Our long-term contribution are the findings about suitability of methods that have the potential to handle the extreme volatility but have not been examined empirically under the conditions of war. We reveal that the Range-GARCH model compares favorably with the standard volatility models, even when the latter are evaluated in a robust way. It gives valuable implication for the future research connected with military conflicts, showing that in such period gains from using more market information outweigh the benefits of using robust estimators.
The article discusses the determinants of the bitcoin (BTC) price value, with particular emphasis on blockchain technology. The method of critical analysis of the literature on the subject was applied, and the state of knowledge in this field was established by juxtaposing different views of researchers on the BTC price value. It has been proven that BTC, being unquestionably a financial innovation, has been subjected to a free valuation of its price in the markets. While observing the development of BTC quotations, potential causes of numerous fluctuations in its market valuation were searched for. The article shows that the expectations related to the use of BTC are relatively highly valued by investors in modern financial markets. A more efficient currency, competition between currencies or the provision of new technological solutions may bring benefits to markets and economies, which, discounted at the present time, generate a certain value. Therefore, the paper shows that the BTC value creation mechanism is therefore different from that of fiat currencies. It has also been confirmed that the promotion of one of the most popular distributed data registers, which is blockchain, is of great value for BTC. BTC has led to the development of blockchain technology that is used in various segments of the economy. Basing BTC's operation on a public data register is the strength of the entire BTC network, but it also brings many risks and uncertainties. Further, research should focus on searching for the economic effects that result from the development of blockchain technology in modern economies.
In this paper the author’s interpretation of essence and applicability of smart-contracts in economics. Examples are given along with critical view on wrong statements, found in publications on examined topic. Repeating of certain theses from similar papers won’t be redundant, because it will help to observe the topic from different point of view. In general, author gives positive valuation of applicability of smart-contracts technology in economics (both, financial and real sector, despite of some obvious inherent disadvantages of current implementation in Ethereum. In author’s opinion, integration of smartcontracts and blockchain with IoT can give synergetic effect and consider real cyber-social interaction. Certain value to this paper is added by author’s practical experience of coding and adopting smart-contracts. Smart-contracts are mentioned by Bank of Russia with implementation of CBDC (Central Bank Digital Currency) concept in the form of digital rubble and receive additional significance in current trend of dematerialization and virtualization of money. In paper essential terms and author’s point to ability to change contract terms after deploy are given.
Modern economic research of the market for distributed ledgers and blockchain technologies shows that both the nature of the stage of its development and the implemented measures to ensure security with digital technologies of the corresponding industry specificity to verify the information provided to users of financial statements continue to be controversial. In this regard, when discussing cryptocurrencies and blockchain technology, it is necessary to consolidate the terminology at the legislative level, which can be used in the same manner by state administrations, as well as by international companies. In turn, when forming accounting policies by international companies that carry out operations with cryptocurrency, it is important to take into account the current interpretations of the Committee on Interpretations of International Financial Reporting Standards. At the same time, some practical issues cannot be resolved unambiguously due to the discrepancy between the economic essence of crypto assets and other types of objects. Despite the multiple similarities in their classification, as well as the subsequent reassessment in the format of the current standards, the greatest difficulty is raised by questions about the reliability of the information provided for users of financial statements and top management for managing the company's business processes, managing the value of companies and financial reporting architecture. Based on the results of the study, the authors propose a promising engineering business model for managing the value of crypto assets, built on the basis of the current provisions of IFRS.
The paper is devoted to studying the bitcoin blockchain as a new global phenomenon in monetary economics, which requires comprehending from the economic theory view - a self-regulating system of decentralized emission without participation of a central monetary authority. Mathematical modelling is the instrument of this studying. The author has analyzed the Bitcoin system parameters that determine dynamics of a self-regulating emission mechanism. This mechanism operates in a peer-to-peer computer network and provides a smooth increasing of the "money supply" with a gradually decreasing rate of growth. The limit of this growth is determined by maximal volume 21 million BTC. Self-regulation is implemented through negative feedback between changes of control parameters (the target interval for the hash function values and the Bitcoin Difficulty level) and the speed of mining process. Control parameters depend on the real speed deviations from the target value. This mechanism provides a stable mining speed and determines annual rate of emission. The author suggests a spline-function for describing the annual rate of the cryptocurrency emission in accordance with the Proof-of-Work protocol in the Bitcoin blockchain algorithm. This spline-function gives possibility to find a monetary rule for annual rate of emission. The author in the paper proposes to call this monetary rule by the name of the Bitcoin system inventor - Nakamoto Monetary Rule. The Nakamoto Monetary Rule could be seen as the first example of a programmable monetary rule of the decentralized emission algorithm on the basis of blockchain technology. Central banks could use a similar approach, with the necessary modifications, to develop their programmable monetary rules for Central Bank Digital Currencies (CBDCs) emission based on DLT or blockchain technology
Cryptocurrency is a new economic phenomenon, a product of globalization, which from a historical point of view is characterized by the authors as a completely natural phenomenon of some obvious trends in digitalization. The authors analyze the impact of the 2019-2020 pandemic on the innovation of social, economic and even political spheres of life. It is stated that coronavirus pandemic of 2020 has shown how important it is to have a strong state in today’s world and how important its organizational-administrative and social functions may be, with the state simply being irreplaceable in this area for now. People’s expectations of the state in the current climate of global threats and emergencies are quite high, with everybody interested in a strong state and waiting for some active action on its part. In a crisis, a strong state has to be financially and organizationally powerful, which may require utilizing all available mechanisms. The current situation suggests the possibility of the traditional institutional state coexisting with the decentralized cryptocurrency market. It is concluded that a strong state in a crisis should have financial and organizational strength, which can be achieved only by using all available resources of the state. However, this thesis does not call for" headlong " legalizing potentially useful tools, but rather cautiously assessing the prospects for introducing innovations.
The appearance of cryptocurrency has become a high-profile event, around which disputes still persist. Some see it as a direct threat to the security of national economy, some as a long-awaited triumph of market principles of self-regulation. The necessity, expediency and the most effective model of regulating the cryptocurrency market are burning issues. The relevance of these issues in the context of Russian reality is proved at least by the fact that Russia is one of the leading countries in the use of digital currency, and the number of crypto wallets opened by Russians has exceeded 8 million. The aim of this article is to review the currently existing opinions and accumulated experience in solving the problem of regulating the digital currency market.
The modern world is changing rapidly. Digitalization is becoming more and more important and penetrates into all spheres of society. The digital transformation of financial and monetary processes and systems deserves special attention. It is important to determine the place and role of the state in the regulation of these processes. This paper examines the current state and prospects of using cryptocurrency as an element of monetary circulation. Analysis of the dynamics of the bitcoin rate showed that the use of cryptocurrencies is promising. However, it is necessary to improve the regulatory framework. The introduction and use of the national cryptocurrency in Russia will stabilize the state of the financial system in relation to the dollar, ensure the safety of economic development and reduce transaction costs.
Open access
Economic and Technological Developments in Russia
Economic and Technological Systems Analysis
Economic, Social, and Public Health Issues in Russia and Globally