The aim of the article is to clarify the basics of the digitalization strategy of the competitive businesses and identify features of the institutional environment that ensure the development of cryptocurrency as a new asset (IT product) of the modern economy, analyze the methods of implementing the cryptocurrency business models. The relevance of the research paper is determined by the need to develop a competitive Russian cryptocurrency (including the cryptoruble) with the growing private, state and cross-national cryptocurrencies. The scientific novelty of the study implies clarifying the informal and formal rules of the institutional environment and related methods ensuring the development of a competitive cryptocurrency. The authors consider the following methods to implement the institutional features of the cryptocurrencies business model development: logic and blockchain algorithm that establish trust and collaboration between cryptocurrency developers; logic and blockchain consensus algorithm ensuring that all the parties of the blockchain network come to a common agreement (consensus); logic and blockchain algorithms that form cryptocurrency transactions and control its turnover by generating blocks of cryptocurrencies, by forming the structure of blocks and transactions of cryptocurrencies, by storing cryptocurrencies’ keys and providing security, by mining (forging) cryptocurrency, etс.The results of the study provide a basis for identifying the institutional features and the corresponding methods providing a competitive cryptocurrency development with a detailed analysis of the blockchain consensus algorithms that ensure the competitiveness of the cryptocurrency. The conclusions show that the most promising are the hybrid consensus algorithms which may include both the logic of two or more known algorithms and the original logic of a new algorithm. The authors recommend defining the logic of the blockchain consensus algorithm as a priority when developing a cryptocurrency to ensure reliability of the transactions in the blockchain network, thus increasing the competitiveness of the cryptocurrency.
Blockchain technology and its industrial use cases can be detected worldwide. It is time for the state to think about the blockchain as an opportunity to reduce costs and build trust in the public spending. The paper and the presentation give an overview on how the state can apply the distributed ledger technology (DLT) and blockchain technology in the public administration: there are several countries with best practices already, and even more are in the introduction phase of opening to Industry 4.0 in the public services as well. On the field of FinTech area the state has great responsibility to regulate (or at least define) the phenomena of cryptocurrencies, that is already in use for more than 10 years now without any responsible governmental acts. Within this topic the Central Bank Digital Currency projects are also discussed in the paper, which are supported by IMF, and declared as the next natural step forward on financial markets. Keywords: blockchain, DLT, SDG, public spending
Objective: to consider the evolution of types and forms of money, to classify the varieties of cryptocurrency and its functions, to explain the mechanisms for issuing and circulation of cryptocurrencies, as well as to identify problems in the field of legal regulation of digital virtual currencies in the Russian Federation.Methods: the work used a dialectical combination of the principles of a systematic approach and various ontological knowledge through a range of methods of historical, empirical, comparative, logical, statistical and predictive cognition.Results: it is shown that the modern global monetary system is evolving towards decentralization; it is based on cryptocurrencies issued as part of a functional combination of public and private blockchains; cryptocurrencies require full legalization, not prohibition at the legislative level; cryptocurrencies are types of digital virtual assets accounted for on accounts (crypto wallets) identified within.Scientific novelty: for the first time, the article shows that it is erroneous to consider cryptocurrency to be just a property and to limit its operations just to cross obligations for transferred goods and rendered works (services). Cryptocurrencies are decentralized virtual money based on mathematical algorithms using open-source asymmetric cryptography techniques and consensus-based platforms. Users need both external (cryptocurrency) and internal (tokens) currencies to increase the efficiency of using traditional assets (property, goods and services) in the economy.Practical significance: the main provisions and conclusions of the article can be used to develop a glossary, terms and definitions of cryptocurrency, mechanisms for regulating its issue and circulation in Russia, as well as making amendments to the draft law “On digital currency and amendments to certain legislative acts of the Russian Federation” that are adequate to the economic nature of cryptocurrency.
Розкрито сутність діджиталізації як механізму управління місцевими фінансами, визначено особливості його практичного забезпечення, принципи та вимоги. Досліджено основні аспекти розвитку діджиталізації та розширення доступу територіальної громади до процесу управління місцевими фінансами в умовах децентралізації влади. Аналізуються недоліки сучасного стану діджиталізації управління місцевими фінансами з точки зору наповнення апаратними можливостями електронних платформ та програм. Визначено напрями та необхідні умови підвищення ефективності управління місцевими фінансами (планування, організація, контроль, нагляд) усіма членами територіальної громади за допомогою механізму діджиталізації. Зроблено висновок, що механізм діджиталізації в сфері місцевих фінансів демонструє необхідність запровадження важливого тренду — переходу від громадського контролю до громадської ініціативи. На сьогодні, в умовах децентралізації влади великого значення набуває розширення форм електронної демократії за допомогою технологічних можливостей та сучасних гаджетів, які значно спрощують та розширюють доступ громади до сервісів управління в режимі реального часу, в тому числі в сфері місцевих фінансів.
The article explores modern trends in the development of digital money. The purpose of the article is to identify and analyze the risks of digital money, and to study scientific approaches and tools for managing these risks. The authors use general scientific and special research methods, including comparative legal analysis and a systematization method, as well as methods of economic theory: positive analysis and scientific abstraction. The research highlights the strategic challenges and guidelines in the development of digital money in the Russian Federation and shows the difference and common features of digital and electronic money. Based on a comparative analysis of private and national digital money, we conclude that the digital money of Central Banks is more flexible and more reliable for consumers than private cryptocurrencies. We systematize the risks of digital money circulation at the micro, mezzo and macro levels, as well as identify the essential tools for managing them. The authors note that exogenous risk management tools are more typical for private cryptocurrencies, and endogenous tools will apply to digital money of central banks, in particular, the development of an appropriate configuration of Central Bank digital currency. The study may be useful for digital money users, as well as government agencies implementing policies and regulations on the issue and circulation of digital money in Russia.
This article is devoted to cryptocurrency as the newest form of currency in an era of a rapid IT development. The cryptocurrency<br> is substantially known to have a number of advantages, and, thus, could be integrated into the global financial<br> system to increase its effectiveness. However, there are some issues concerning its usage. In particular, a possibility to use cryptocurrency anonymously might cause some issues with taxation and also lead to an increasing number of illegal<br> transactions. In conclusion it is stated that in the medium run cryptocurrency might qualify as the global currency and<br> even replace fiat money.
For the last five years there has been a global boom of interest in cryptocurrencies, followedby the fall of their rates; at the same time, there was a wave of enthusiasm regarding the publicoffering of tokens (ICO) and disillusionment in them (due partly to the active counteraction byAmerican and other influential regulators). Disputes on doctrine moved from suggestions of anew object of property rights to prohibitive initiatives. As these eventful years have shown, theglobal financial system is sufficiently stable to digest even such a decentralized phenomenonas cryptocurrency. In my opinion, it is now time to recall the tribulations of former discussionsand draw a conclusion concerning their interim (one hopes) normative results.
Cryptocurrencies have become one of the most relevant topics in recent financial and economic issues. Today, the main features of cryptocurrency are decentralization, ability to be considered as means of payment, high liquidity, absence of an issuer as any central authority, irreversibility of payments and transparency. The growth of cryptocurrencies among other world currencies allows them to be a highly profitable asset to invest in and stimulates the interest of new miners. However, there are some risks arising. Firstly, the risk related to governmental restriction and regulating laws about usage of cryptocurrency. Secondly, there is a risk of fraud and no opportunity to accuse those responsible due to the anonymity of users. And last but not least, high volatility of cryptomarket. Keywords: bitcoin exchange rate, cryptocurrency, financial index, currency pair, metal futures, correlation-regression analysis, forecast of bitcoin value dynamics.
This article discusses the role of using distributed ledger technology in the cryptocurrency market. The concepts of «cryptocurrency» and «distributed registries» are analyzed. The mechanism of the operation of distributed registries on cryptocurrency markets is considered.
The aim of this work is to study the pricing in the cryptocurrency market and applying cryptocurrencies by the Bank of Russia for its monetary policy. The research objectives are to identify the cyclical nature of price dynamics, to study market maturity and potential risks that have a long-term positive relationship with the financial stability of the cryptocurrency market. The author uses the Hurst method with the Amihud illiquidity measure to study the resistance of four cryptocurrencies (Bitcoin, Litecoin, Ripple and Dash) and their evolution over the past five years. The study results in the author’s conclusion that the cryptocurrency market has entered a new stage of development, which means a reduced possibility to have excess profits when investing in the most liquid cryptocurrencies in the future. However, buying new high-risk tools provides opportunities for speculative income. The author concludes that illiquid cryptocurrencies exhibit strong inverse anti-persistence in the form of a low Hurst exponent. A trend investing strategy may help obtain abnormal profits in the cryptocurrency market. The Bank of Russia could partially apply digital currency to implement monetary policy, which would soften the business cycle and control the inflation. If Russia accepts the law ‘’On Digital Financial Assets’’ and legalizes cryptocurrencies after the economic crisis caused by the COVID-19 pandemic, the Bank of Russia might act as a lender of last resort and offer crypto loans.
The article is devoted to the consideration of the features of the financial system development in the conditions of technological change, total digitalization of economic activity and social relations. The study presents current Russian and foreign practices and trends in the development of digital technologies in the financial system. The author critically examines the formation of institutions, the use of new tools and mechanisms in the decentralized sphere and the sphere of public Finance. The risks of digitalization that pose threats to certain elements of the financial system are identified. There is no conflict of interests.
Open access
Economic and Technological Developments in Russia
Economic Development and Digital Transformation
Digitalization and Economic Development in Agriculture
The market for digital assets has evolved since its inception in 2009. Its rapid proliferation in 2016-18 was followed by significant downward corrections in 2018-19. The article evaluates the central stages of the evolution of the market in digital assets and their effects on market participants. It presents and compares market data for initial coin offerings, equity offerings, and initial exchange offerings in blockchain and digital asset startups. The author examines data trends and their underlying causes in the evolution of the market for digital assets. Particular emphasis is placed on the emerging market for Decentralized Finance (DeFi) and its role in the evolution of digital assets. The article examines data to evaluate the feasibility of a DeFi market evolution in the decentralized market infrastructure environment of the early 2020s.
Crypto currency, bitcoins and virtual currencies are topics the scientific community has been discussing for years. The Bank of the Russia has repeatedly warned about high risks of investments in crypto currencies and risks in its turnover. Populations of many countries continue to lose their investments in virtual currencies, which are positioned by their developers as tamper-proof. However, there is still a vacuum in the legal regulation of crypto currencies and the legitimacy of their use as legal payment. The article presents the author’s view on a number of issues arisen in the process of crypto currency, bitcoin, digital and virtual currency use and presents ways to solve them in the context of Russian and world experience.
This article is dedicated to the question of taxation and tax management of a number of operation in digital environment, namely related to the use of cryptocurrency. Special attention is paid to blockchain technologies as a promising tool for improvement of tax management and automation of business processes. The relevance of this work on the one hand is substantiated by the increasing trade volume on the digital markets hand, while on the other &ndash; weak foundation, insufficient technical capabilities of tax management of such operations and univerdsally accepted approaches. The results of research can be used by the Ministry of Finances and Government of the Russian federation in development of strategies for improvement of tax policy. The author determines the global trends of recognition/non-recognition of cryptocurrency as a specific type of property, assets of payment method. A brief overview of foreign approaches towards tax regulation of cryptocurrency is presented. The author systematizes the Russian legislative framework on taxation of digital currency, describes the evolution of national approaches to fiscal regulation in this area. A formulation of modern interpretation of cryptocurrency as the object of taxation by different types of taxes (corporate tax, value-added tax, corporate property tax, personal property tax) is provided. The author determines the possibilities for development of tax management with the use of blockchain technologies, as well as forecasts main consequences of such transformations for businesses and the state.
The object of this research is the international standards AML/CFT (Anti-Money Laundering/Combating the Financing of Terrorism) for the sphere of virtual assets (cryptocurrencies) developed by FATF (Financial Action Task Force), and possibilities of their effective implementation into the national legislation. The author examines new revision of the Recommendation 15 and Glossary (of October 2018), explanatory note to new revision of the Recommendation 15, and implementation guidance of the risk-oriented approach towards virtual assets and service providers in the sphere of virtual assets (of June 2019); considers provisions of the Federal Law of July 31, 2020 No.259-FZ &ldquo;On Digital Financial Assets, Digital Currency, and Amendments to Certain Legislative Acts of the Russian Federation&rdquo; becoming effective in January 2021. Based on the analysis of most recent international and Russian acts on the questions of legal regulation of cryptocurrencies turnover, the need is underlined for introducing amendments to the Russian legislation with regards to exercising financial monitoring of transactions with cryptocurrencies in Russia. The author indicates certain fundamental aspects related to collection and validation of personally identifying information on the holders of cryptocurrency and tracing of their transactions.
The article considers the origins of the fourth industrial revolution, the impact of new IT processes and their integration into society and economy. The authors focus on the idea of creating a cryptocurrency Bitcoin and a new payment system based on the blockchain platform. The innovative components of blockchain technology are presented. The technological changes caused by its development are analyzed. The problems of the financial industry and the technological processes occurring in the banking market are analyzed in detail. The prerequisites and the innovation process of the formation of a decentralized monetary system are explained. The authors propose a new concept of «parallel money systems» and formulate the principles of centralized and decentralized approaches to the organization of the monetary system. The features of building a decentralized monetary system are described; its advantages and disadvantages are formulated. A number of arguments in favor of the validity of the adoption of the new form of the monetary system is given and substantiated; the difficulties of its development are analyzed.
Along with the socio-economic sphere, interest in Internet technologies in public-private partnerships, companies and institutions, organizations allows you to integrate blockchains into large infrastructure. This result can be achieved by giving the user access and changing internal database storage algorithms. The main feature of blockchain technology is that it is based on decentralization. In the case of using any means of protection, if it is possible to crack the database located on the server, then such a malfunction is not allowed in the blockchain. The article discusses the concepts of cryptocurrency, blockchain, and bitcoin, as well as the principles of their operation. Prospects for their development and large-scale impact on financial activities carried out via the Internet are presented. It also describes cryptocurrencies and the technologies and algorithms used in them.
Introduction. The paradigm of the modern development of economic intelligent systems is associated with the introduction of information technology, technology platforms, protocols, and IoT. Understanding the essence of technological breakthroughs and finding ways to implement technological innovations to digitize economic processes should help solve a number of problematic areas of doing business that focus on improving competitiveness. Methods. The methodological basis of the article was the current principles of the theory of innovation, methods of cognition, which are formed in the main works on the theoretical direction of the theory of organization, theory of organizational behaviour, theory of competition and theory of system analysis. Results. The essence is examined and the feasibility of using blockchain technology to increase the competitiveness of the business and reduce the risks of its business is proved. An idea of the functioning of the blockchain technology has been formed and the advantages based on the principles of invariability and accessibility of the tool have been highlighted, therefore they should work on the safety and efficiency of doing business. The experience of introducing blockchain technology by foreign countries is analyzed, possible applications are identified. The modern vitality of economic intellectual systems requires specialized technical knowledge and skills, understanding of the essence of technological processes and access to databases that allow to combine economic and technological pools of knowledge to achieve business goals. Discussion. Prospects for further research will be concentrated in the field of potential applications of blockchain technology on the Ethereum platform through smart contracts with promising use of artificial intelligence. Keywords: economic intelligent systems, digitalization, blockchain technology, Ethereum platform, smart contract, competitiveness.
Марат Рашитович Сафиуллин, Mikhail Valer'evich Savelichev, Leonid Alekseevich Elshin
This article explores the potential of using cryptocurrency as universal currency in the conditions of transition of the global economic system towards sixth technological paradigm. The goal of this research consists in analysis of the patterns of co-evolution of the global financial system, technological system, and global economy. Based on the historical material, the author demonstrates how shift in technological paradigms is accompanied by financial crises, and result in the changes of the world financial system. Over the course of time, the gold served as the universal currency, but the advancement of technologies demanded the transition towards more flexible forms of world currency based on the national currencies of most industrialized countries. Currently, the transition to the technology of the sixth technological paradigm is followed by the global financial crisis. The U.S. dollar is not handling the functions imposed by the latest technologies upon monetary systems. The conclusion is made that finite currencies are being replaced by an innovative generation of monetary systems that are based on cryptocurrency. The authors systematize the innovation forms of investment, accounting, keeping and saving of funds, which are based on cryptocurrency and blockchain. It is demonstrated that innovation financial instruments, including different types of cryptocurrency, tokens, smart contracts, and cryptocurrency exchanges, open new opportunities for effective investment in the technologies of sixth technological paradigm. The results of research can be valuable for the government branches in establishment of the policy for usage of cryptocurrency and blockchain for entrepreneurs dealing with developments in the area of practical implementation of cryptocurrency as innovative currency.
International Journal of Psychosocial Rehabilitation - IJPR, is an editorial & peer-reviewed journal publication for mental health care providers, practitioners, nurses, consumers, and applied researchers, bearing ISSN: 1475-7192.
Jan 1, 2020·Proceedings of the 2nd International Scientific and Practical Conference “Modern Management Trends and the Digital Economy: from Regional Development to Global Economic Growth” (MTDE 2020)
Natalya N. Kovalyova, N.A. Zhirnova, М В Филимонова
The main attention is paid to the review of prospects in the field of legal regulation of such new financial instruments as cryptocurrencies as a type of electronic money. A number of bills and laws governing the public relations in question are analyzed. The problems that the Russian legislator is required to solve in order to ensure adequate legal regulation of new public relations are highlighted. The experience of some foreign countries in the field of legal regulation of cryptocurrencies is analyzed. It is concluded that today the development of the legal regime of new financial instruments, cryptocurrencies, is an urgent need. The lack of state regulation in the Russian Federation of electronic payments made in payment systems that use cryptocurrency as a means of transactions introduces confusion into society making the use of digital financial assets in the Russian Federation doubtful, which seems like a denial of world technology. Ultimately, the development of the Russian state depends on the fastest solution to this problem.