В статье рассматривается парадигмальный сдвиг от централизованной платформенной модели экономики («надзорный капитализм») к децентрализованной пост-платформенной архитектуре, базирующейся на протоколах Web3, децентрализованных автономных организациях (DAO) и одноранговых (P2P) сетях. На основе статистических данных DeepDAO, Dune Analytics и отчетов Messari за 2024–2026 гг. обосновывается исчерпание потенциала масштабирования супер-приложений. Анализируются механизмы токеномики, меритократического голосования и снижения транзакционных издержек как ключевые факторы формирования новой экономической реальности. Особое внимание уделяется вызовам институциональной адаптации и необходимости формирования «алгоритмического права».
The paper’s subject is examining decentralized autonomous organizations (DAOs) governance models during the digital economic shift. This study aims to deeply analyze DAOs to find governance aspects, and to develop a model to help integrate them into global finance and public administration. To achieve this goal, the study addressed the following tasks: analyzing existing methods to DAO governance; identifying key risks and opportunities; modeling a hybrid organizational structure; and assessing the role of stablecoins as a stabilizing element. The study’s novelty comes from the creation of a unique adaptive DAO governance model that combines elements of centralization and decentralization to enhance efficiency and legitimacy. The author used methods of comparative and systemic analysis, modeling, and real-world solutions and regulations. The results prove DAOs can complement traditional governance by making economic interactions more transparent and efficient. The study’s main takeaway is that DAOs need a balanced regulatory framework and better governance. Government agencies, blockchain developers, and specialists in public and corporate governance can use the work results.
Open access
Blockchain Technology Applications and Security
Digitalization and Economic Development in Agriculture
The article deals with the development and theoretical justification of a set of economic and mathematical models that ensure the risk management of decentralised research projects in the pharmaceutical industry using crypto-economic tools. The necessity of this development stems not only from the challenges posed by geopolitical instability and the obsolescence of the traditional “blockbuster” funding model in pharmaceutical corporations, but also from the development of highly specialised markets of medications for the treatment of rare diseases, research into longevity therapies, and the advancement of “long-tail science”, as well as new ways of organising research and development within the paradigm of decentralised science based on Web3 technologies. The study presents models that are unified by an endto-end risk management logic: from the assessment of management structure and human resource capacity, through fundamental valuation, to revenue distribution and protection against biomedical risks. The results obtained make it possible to establish threshold criteria for the management structure in scientific decentralised autonomous organisations (DAOs) and to formulate targeted recommendations for public authorities on improving the regulation of decentralised organisations.
Open access
Economic and Technological Systems Analysis
Digitalization and Economic Development in Agriculture
This study analyzes the transformation of the state apparatus from the model of representative democracy to the paradigm of the "Operational State". The model integrates meritocratic structures and distributed ledger technologies to eliminate systemic inefficiency (Schwab 2016). The text defines the Lex Automatica doctrine, formulates a mathematical model of the Social Contribution Index (SCI), and redefines institutional architecture through the Stability Triad. The work critically reflects on the risks of algorithmic governance and proposes safeguard mechanisms in the form of civic sortition.
This article argues that the extraction of value through informational asymmetry, what the article formalizes as the Blaeu rent, is categorically distinct from Ricardian scarcity rents and Schumpeterian innovation rents: it scales with the counterparty’s blindness, is invariant to productive merit, and is dissolved entirely by symmetric closure. The argument proceeds in three interlocking registers. The first is philosophical: drawing on Maurice Merleau-Ponty’s account of motor intentionality, Martin Heidegger’s analysis of the ready-to-hand, and Antonio Damasio’s somatic-marker hypothesis, the article defends the existential claim that some intentional states carry content before they are verbalized, and that pre-articulate knowledge, alongside acquired, derived, received, and inherited knowledge, constitutes a legitimate and analytically distinct mode of knowledge entry. The second is formal: the article introduces a fiber bundle topology to represent semantically overloaded concepts without metric distortion; formalizes the Blaeu rent as a function of the information set differential between counterparties, subject to strict conditions of merit-invariance; presents a mechanism-design proof, grounded in adverse selection dynamics, demonstrating that institutional adoption of symmetric instruments is the dominant rational strategy for capital; and formalizes the irreversible loss of cognitive potential under asymmetric conditions as a cognitive entropy law, drawing on Nicholas Georgescu-Roegen’s thermodynamic framework, showing that the waste is path-dependent and permanent. The third is architectural: the article specifies the federated, homomorphically encrypted governance structure required to make the sovereignty claim real rather than nominal, and addresses the warrant-adjudication problem through cryptographically verifiable zero-knowledge credential systems. The central finding is that symmetric closure of the information gap dissolves the Blaeu rent entirely while leaving earned competitive advantage, including first-mover position, execution capacity, and risk tolerance, wholly intact.
A Arquitetura Pós-Institucional do Estado Online: Criptomoeda de Inovação e o Empresário dos Empreendedores Preprint de Anterioridade Autor: Claudio Roberto Cutrim Carvalho, PhD. Email: drclaudiocutrim@gmail.com , drcutrimcarvalho@gmail.com Resumo A economia digital ampliou o acesso à informação, mas não resolveu a dependência estrutural de intermediários políticos, burocráticos e corporativos na coordenação da atividade inovadora. Mesmo experiências avançadas de governo digital preservam estruturas hierárquicas (LESSIG, 1999; O’REILLY, 2011), enquanto ecossistemas de inovação continuam baseados em organizações formais, clusters territoriais e marcos regulatórios rígidos (CHESBROUGH, 2003; PORTER, 1998). Por outro lado, a criptoeconomia inaugurada por Nakamoto (2008) introduziu descentralização técnica, mas permanece ainda baseada em incentivos energéticos e financeiros incapazes de converter impacto humano em valor monetário estável (BUTERIN, 2014; TAPSCOTT; TAPSCOTT, 2016). Este artigo propõe um modelo alternativo composto por três elementos integrados: o Estado Online, uma infraestrutura pós-institucional que substitui mecanismos hierárquicos por coordenação distribuída; o Empresário dos Empreendedores, agente articulador capaz de transformar talentos dispersos em inovação contínua; e a criptomoeda de Prova de Inovação, que converte impacto de inovação ou autonomia humana verificável em emissão monetária, oferecendo uma base econômica distinta de modelos energéticos ou de staking. O arcabouço sugerido preenche lacunas deixadas pelas teorias existentes — de Schumpeter (1934) a Ostrom (1990) — ao propor um sistema operável sem Estado territorial. A contribuição reside em estabelecer uma arquitetura teórica para economias pós-institucionais, na qual governança, valor e distribuição emergem de processos distribuídos de validação e reconhecimento. Palavras-chave: Estado Online; Prova de Inovação; Criptoeconomia; Governança Distribuída; Tokens de Impacto; Inovação; Economia Digital. Abstract The digital economy has expanded access to information but has not resolved the structural dependence on political, bureaucratic, and corporate intermediaries in the coordination of innovative activity. Even advanced forms of digital government retain hierarchical architectures (LESSIG, 1999; O’REILLY, 2011), while innovation ecosystems remain constrained by formal organizations, territorial clusters, and rigid regulatory frameworks (CHESBROUGH, 2003; PORTER, 1998). Conversely, the cryptoeconomic model inaugurated by Nakamoto (2008) introduced technical decentralization, yet it still relies on energy- and finance-based incentives that fail to convert human impact into stable monetary value (BUTERIN, 2014; TAPSCOTT; TAPSCOTT, 2016). This article proposes an alternative model composed of three integrated elements: the Online State, a post-institutional infrastructure that replaces hierarchical coordination with distributed processes; the Entrepreneur of Entrepreneurs, an articulating agent capable of transforming dispersed talent into continuous innovation; and the Proof-of-Innovation cryptocurrency, which converts verifiable innovation impact or human autonomy into monetary issuance, offering an economic basis distinct from energy- or staking-driven systems. The proposed framework fills gaps left by existing theories—from Schumpeter (1934) to Ostrom (1990)—by outlining a system capable of operating without territorial state structures. Its contribution lies in establishing a theoretical architecture for post-institutional economies in which governance, value, and distribution emerge from distributed processes of validation and recognition. Keywords: Online State; Proof of Innovation; Cryptoeconomics; Distributed Governance; Impact Tokens; Human Autonomy; Post-institutional Economy; Innovation Systems; Decentralized Coordination.
Digital currency, as an emerging financial instrument, is having a profound impact on the traditional financial system. This paper explores the transformative role of digital currencies on the global financial system by analysing the types of digital currencies, their technological foundations and their impact on the areas of money supply, banking, payment systems and capital markets. First, digital currencies have improved payment efficiency and financial inclusion, especially central bank digital currencies (CBDC) and decentralized finance (DeFi) have driven innovation in payment systems and cross-border payments. Second, the popularity of digital currencies also poses regulatory and compliance challenges, particularly in terms of monetary policy, financial stability, and cross-border regulation. Finally, the paper highlights the potential of digital currencies to drive financial services inclusion and market innovation, particularly in the area of decentralised finance. Nonetheless, issues of technical security, market risk and legal compliance still need to bead dressed. In the future, the development of digital currencies will depend on technological advances and regulatory harmonization on a global scale.
This article explores the potential of Decentralized Autonomous Organizations (DAOs) to contribute to the digital transformation of society through the lens of ethics, social structure, and emerging economic paradigms. The focus is on the synergy between DAO structures and artificial intelligence (AI), and the ways in which such convergence may support new redistributive mechanisms such as Universal Basic Income (UBI) and Inclusive Capitalism. By combining conceptual analysis, relevant case studies, and data derived from existing research, the article evaluates whether DAO-AI systems can provide scalable, ethical, and decentralized alternatives to traditional organizational and economic models.
The financial system of sub-Saharan Africa is heavily dependent on foreign and international capital. The external debt of Sub-Saharan Africa is more than 60% of the total GDP, in some countries, that is about 95%. In the last decades, there has been an expansion of the influence of pan-African financial groups and central/national banks in the monetary policy of African states. Sub-Saharan Africa shows exponential growth in electronic mobile payments and the digital currency of central banks and crypto assets depends on distributed ledger technology. Regional financial centers have emerged, shaping the growth and development of African finance. The structure, specifics and main trends in the development of the financial system of sub-Saharan Africa are described in the context of the challenges facing the global financial system. The need for integration processes for the countries of the continent, the role of central banks and Pan-African financial institutions are substantiated. The possibility of implementing the concept of leapfrogging in the transition of the monetary and credit system of the African continent to national digital currencies and the use of distributed register technology are considered. The author considers the credit and monetary system of Sub-Saharan Africa as a place of financial innovations that can identify the development of the global financial system for decades to come.
Open access
Economic Issues in Ukraine
Economic Development and Digital Transformation
Economic, Social, and Public Health Issues in Russia and Globally
This paper examines the phenomenon of digital transformation in socio-economic systems as an object of public governance through the transition from an instrumental to a substantional understanding of digital technologies’ role. Using an interdisciplinary approach, the research systematizes theoretical and methodological concepts of digital transformation and identifies its seven fundamental properties: transversality, recursiveness, emergence, accelerativity, cognitive-transformational potential, institutional reconfigurability, and ontological hybridity. These properties form the methodological foundation for a new understanding of digital transformation, where technologies are viewed not as external optimization tools but as constitutive elements of a new institutional reality. The study develops a matrix of digital transformation’s impact on components of the socio-economic system, structuring the nature of changes, influence mechanisms, and resulting effects for economic, social, political-administrative, innovative, and informational subsystems. The research analyzes the evolution of public governance instruments for digitalization—from e-government to digital statehood models focused on digital resilience and platform-based approaches. Based on analysis of real-world cases of public sector digital modernization across different countries, the study confirms that effective public governance of digital transformation requires a comprehensive approach that accounts for the systemic nature of transformational processes. The research demonstrates that the transitive model of digital statehood creates a methodological foundation for proactive responses to digital era challenges through vertical integration of artificial intelligence systems and distributed ledgers into mechanisms of strategic planning and institutional adaptation.
This study examines how decentralized financial flows - including blockchain technologies, cryptocurrencies, fintech platforms, and central bank digital currencies - have influenced economic integration in post-Soviet countries from 2000 to 2025. Framed within the broader processes of digital transformation and institutional change, the research addresses the demand for alternative financial infrastructure in transitional economies. Employing a mixed-methods approach, it combines cross-country analysis with case studies to assess digital infrastructure, regulatory adaptation, financial inclusion, and DeFi adoption. Findings show that while digital connectivity has increased, decentralized finance usage varies based on institutional and socio-economic conditions. Countries facing financial shocks often adopted DeFi from the bottom up, while others pursued top-down regulatory strategies. The study concludes that decentralized finance is already enhancing integration by improving access to payments, savings, and public services.
We present the first formal treatment of \emph{yield tokenization}, a mechanism that decomposes yield-bearing assets into principal and yield components to facilitate risk transfer and price discovery in decentralized finance (DeFi). We propose a model that characterizes yield token dynamics using stochastic differential equations. We derive a no-arbitrage pricing framework for yield tokens, enabling their use in hedging future yield volatility and managing interest rate risk in decentralized lending pools. Taking DeFi lending as our focus, we show how both borrowers and lenders can use yield tokens to achieve optimal hedging outcomes and mitigate exposure to adversarial interest rate manipulation. Furthermore, we design automated market makers (AMMs) that incorporate a menu of bonding curves to aggregate liquidity from participants with heterogeneous risk preferences. This leads to an efficient and incentive-compatible mechanism for trading yield tokens and yield futures. Building on these foundations, we propose a modular \textit{fixed-rate} lending protocol that synthesizes on-chain yield token markets and lending pools, enabling robust interest rate discovery and enhancing capital efficiency. Our work provides the theoretical underpinnings for risk management and fixed-income infrastructure in DeFi, offering practical mechanisms for stable and sustainable yield markets.
This paper offers a critical reassessment of Milton Friedman’s economic principles—monetarism, free-market competition, and limited government—in light of the rise of artificial intelligence (AI) and platform capitalism. Drawing on a structured qualitative literature review, the study explores how AI-driven economic structures challenge core assumptions embedded in Friedman’s theoretical framework. The analysis is organized around three key domains where traditional economic logic is being destabilized: (1) the erosion of competitive market dynamics through the rise of digital monopolies and algorithmic control; (2) the transformation of labor markets via automation, gig work, and AI-based management; and (3) the weakening of central bank authority amid the proliferation of decentralized finance and platform-based payment systems. Friedman envisioned markets as inherently self-correcting and efficient, but AI capitalism increasingly reveals the limitations of such views. Digital platforms leverage network effects, data accumulation, and algorithmic manipulation to entrench market power, creating structural barriers to entry that contradict the competitive ideal. Similarly, the gig economy, governed by opaque algorithms, distorts labor flexibility into labor precarity, contradicting Friedman’s belief in voluntary and efficient labor exchanges. On the monetary front, the expansion of private payment ecosystems and algorithmic lending challenges the foundational monetarist assumption that central banks can regulate the money supply effectively. While the analysis recognizes the continued relevance of Friedman’s normative commitment to individual autonomy and market-based coordination, it argues that his framework must be significantly revised to account for the institutional and technological dynamics of the digital age. The paper concludes by proposing a forward-looking governance agenda focused on antitrust reforms, algorithmic accountability, labor protections, and monetary innovation. In doing so, it contributes to the emerging literature that seeks to reconcile classical economic theories with the demands of a rapidly evolving AI-driven global economy.
This article examines the transformative landscape of financial data integration technologies and their collective impact on the financial services industry. The comprehensive exploration covers three pivotal developments reshaping the sector: Open Banking and API standardization, real-time data streaming with AI analytics, and data fabric architecture. Each innovation addresses specific challenges within the financial ecosystem while contributing to a more connected, intelligent, and responsive financial infrastructure. The article details how regulatory frameworks drive adoption, technical standards ensure implementation success, and emerging architectures enable unprecedented capabilities. By investigating the convergence of these technologies and emerging trends, including semantic interoperability, quantum computing applications, and decentralized finance integration, the article provides a forward-looking perspective on how financial institutions can leverage integrated data solutions to gain competitive advantages while navigating complex regulatory requirements and evolving customer expectations.
М. А. Абрамова, С. В. Криворучко, Oleg V. Lunyakov, Алим Борисович Фиапшев
The sphere of decentralized finance is the subject of widespread debate as the ways of providing services in the financial market. Using distributed registry technologies, smart contacts and a decentralized format of cooperation, it is capable, to a certain extent, of replacing traditional financial intermediaries in some product segments of the financial market. The authors set the task of identifying possible markers of liquidity flow into the sphere of decentralized finance, as well as assessing the scale and dynamics of its development compared with segments of the financial sector of the economy. The purpose of the study is to form a system of comparable indicators, based on which national regulators will be able to objectively assess the scale and dynamics of development of the DeFi sector. To achieve the goal, the article conducted a quantitative analysis of the relationship between changes in the money supply and the total value locked of crypto assets in the DeFi sector; a comparative analysis of various segments of the DeFi sphere and the financial sector of the economy was carried out. As the main methods, the authors used methods of regression analysis, systemic and logical methods, induction and deduction, methods of economic statistics, which made it possible to identify tendencies in the development of the sphere of decentralized finance against the background of indicators of development of the financial sector of the economy. The source data consisted of statistical databases on key indicators of the development of the financial sector of the economy at the international level, as well as databases on services provided by participants of decentralized finance. As a result of the study, the impact of changes in money supply on total value locked in DeFi is evaluated, as well as tendencies and scale of development of the sphere of decentralized finance in comparable indicators of the financial sector of the economy are identified. It is concluded that the scale of the current development of decentralized finance is not significant. However, according to a number of comparable indicators, this sphere already represents a certain parity with the financial sector of the economy. First of all, this applies to the trading turnover of decentralized exchanges and the volume of trading in crypto derivatives. The results of the study can be used by national regulators when assessing the scale of development of the sphere of decentralized finance under certain monetary and financial conditions.
Digital Financial Architecture (DFA) has been invented to alter enterprise financial systems that offer agility, scalability, and operational efficiency through advanced technologies like Cloud Computing, Artificial Intelligence (AI), Blockchain, and API-driven platforms. The fact that this transformation has brought together traditional and rigid financial structures with modular and decentralized platforms to create the often real-time decision-making and compliance. Empirical evidence reveals that digital payment is positively related to financial inclusion, and 0.018% of the operational costs will be decreased with a 1% increase in digital transactions. Practices of use of AI and Cloud Computing have reduced the time that is required for making decisions while DevOps practice has decreased the time required for development cycles and deployment efficiency. It enhances the protection of transactions and supports the development of big platforms in finance while allowing data openness. By connecting ESB with EA, users experience better interconnection between systems while making their operations expandable. Numbers show exactly how dynamic resource management works and performance results from our continuous delivery methods. They will look at ways to broaden the previous systems, investigate the security issues surrounding data dissemination, and explore merging technology types with modern digital banking networks.
The integration of information technologies into all spheres of human activity, the proliferation of online communities, and the expansion of the virtual world have precipitated a transformation in consumer needs and an influence on their preferences. This paradigm shift has established the foundations for the emergence and development of digital assets, one notable example being the non-fungible token (NFT). The present article aims to examine the prospects for the development of non-fungible tokens (NFTs) in the context of global transformations in the digital asset market. A graphical method was employed in the study to identify global trends in the development of the NFT market. The use of a systematic approach allowed the identification of differences between NFT 1.0 and NFT 2.0. A comparative analysis was conducted to identify the strengths and weaknesses of the functioning of NFTs, as well as the threats and opportunities for the future existence of NFTs. A descriptive literature review allowed the development of optimistic, neutral and pessimistic scenarios for the development of the non-fungible token market. Product, functional and technological approaches to understanding non-fungible tokens were identified. The article examines NFTs in two forms: as digital assets and as digital certificates. The traditional and non-traditional reasons for using NFTs have been clarified. A comparative characterisation of NFT 1.0 and NFT 2.0 was made based on characteristics, ownership, participants, personalisation and areas of use. The article presents an analysis of the NFT market with a focus on its structural changes. The current state of the non-fungible token market is characterised by a shift from speculation to increased utility of NFTs in various sectors. The strengths and weaknesses of the functioning of non-fungible tokens were identified, as well as the threats and opportunities for their development in the context of global transformations. The study allowed the formulation of scenarios for the development of non-fungible tokens in the midst of critical transformations in the digital asset market. Under the optimistic scenario, market capitalisation, trading volumes, the number of users, the share of non-traditional NFT segments, the use of artificial intelligence in the creation of NFTs, the technical modernisation of NFTs and the legal regulation of all related relationships will increase. The neutral scenario will be characterised by volatility in market capitalisation, trading volumes and the number of market participants. In this scenario, regulation will focus on combating fraud and terrorist financing in the NFT market. In a pessimistic scenario, all key market indicators will decline, resulting in losses from non-fungible token transactions. In some jurisdictions, certain types of NFT transactions will be banned. The conclusions emphasise that with the expansion of the virtual world, NFTs are acquiring the characteristics of a digital product with high potential for use in various fields. The development of the NFT market is characterised by a combination of conflicting trends. On the one hand, there has been an increase in NFT capitalisation in early 2025, along with the growth of holders, buyers, and sellers in 2024. Conversely, there has been a decline in NFT trading volumes. These trends may provide the basis for the implementation of an optimistic scenario for the future development of the non-fungible token market.
Economic theory has long been governed by the principle of scarcity—an assumption that shapes the allocation of resources in virtually all historical economic systems. From classical economics, as articulated by Adam Smith in The Wealth of Nations (1776), to the critiques of capitalist frameworks offered by Karl Marx in Das Kapital (1867), scarcity has been the foundational pillar upon which economies have been constructed. Even in the 20th and 21st centuries, the models of Keynesian economics (Keynes, 1936) and neoliberal capitalism (Friedman, 1962) maintain that resource allocation is predicated on the limits imposed by scarcity, whether that scarcity is natural, human, or financial. However, the technological and systemic advances of the 21st century have begun to challenge this assumption, which, despite its dominance, no longer reflects the evolving nature of global economies. In the era of digital technologies, artificial intelligence (AI), and quantum computing, scarcity is increasingly being replaced by a new set of possibilities—an emergent paradigm defined by abundance and infinite scalability. Quantum computing offers the potential for processing power so vast that it could redefine the very nature of problem-solving. Simultaneously, AI-driven automation and digital decentralization are dismantling traditional models of labor, resource management, and value creation (Brynjolfsson & McAfee, 2014). Moreover, advancements in nanotechnology and synthetic biology could soon facilitate material abundance in previously unimaginable ways, fundamentally undermining traditional economic concerns about finite resources (Drexler, 2013). Blockchain technology, with its promise of decentralized finance (DeFi), is already challenging the very nature of money, while new models of governance enabled by AI and multi-agent systems are rethinking the need for centralized economic management (Helbing, 2015). This transformation signals the birth of a new economic model, one that transcends traditional notions of scarcity—what we term the Infinity Economy. The Infinity Economy represents a departure from existing paradigms of capitalism, socialism, and even post-capitalism (Piketty, 2014). It proposes a complete reimagining of how value is produced, exchanged, and distributed in a world increasingly defined by technological abundance. Rather than extending existing economic systems, the Infinity Economy seeks to eliminate the very foundations of economic thought—namely, scarcity and limited resource allocation—ushering in an era where value and wealth are no longer bound by finite constraints.
ВНЗ "Університет економіки та права "КРОК", Сергій Андрійчук, Володимир Кузьмінський, ВНЗ "Університет економіки та права "КРОК"
This article examines the macroeconomic aspects of the impact of cryptocurrencies on the money market, focusing on their relationship with traditional financial systems, monetary policy, and financial stability. The relevance of the study is due to the growing use of cryptocurrencies as a financial instrument and their integration into the global economy. In the last decade, digital assets have become widespread not only as a means of payment, but also as an element of an investment portfolio, which requires an in-depth analysis of their impact on economic processes. The purpose of the study is to assess the impact of cryptocurrencies on the money supply, monetary regulation mechanisms, and financial stability of states. The research methodology is based on the use of macroeconomic analysis, statistical methods, and a comparative analysis of different approaches to regulating the cryptocurrency market in different countries. Empirical data were used to identify the main trends in the interaction of digital assets with traditional financial systems and potential threats to the monetary policy of central banks. The results of the study indicate that cryptocurrencies can act as a factor that changes the traditional mechanisms of money market regulation. The decentralization of cryptocurrencies and their independence from state control pose new challenges to regulators. On the one hand, crypto-assets can promote financial inclusion and provide alternative methods of financing, on the other hand, they increase the level of volatility and create risks of financial instability. The article examines the role of stablecoins in international financial flows and their impact on the stability of the money supply. It is noted that stablecoins can act as an alternative to fiat currencies in the digital economy, which raises questions about their regulation and place in the monetary policy of states. Potential scenarios for the integration of cryptocurrencies into the modern financial system are investigated, in particular, through the development of central bank digital currencies (CBDCs), which can become an answer to the challenges posed to financial systems by the rapid development of blockchain technologies. Prospects for further research in this area include analyzing the effectiveness of regulatory approaches to controlling cryptocurrencies, studying the correlation between the Bitcoin exchange rate and macroeconomic indicators, and developing models for predicting the dynamics of the digital asset market. An extended study of the interaction of cryptocurrencies with the traditional banking system and their impact on international financial stability remains an important area of scientific research in the future.
The articles and opinions of GRUR International have frequently engaged with some of the leading issues that our legal systems are grappling with, two of which I want to explore in this short editorial focusing on the path travelled and the challenges ahead from an IP and competition law perspective. These are (possibly unsurprisingly) sustainability – including climate change – and digital and AI developments. The first part will briefly review how the two areas of law have interacted with these issues. The second part will focus on how the new era of polarisation, de-globalisation, protectionism, and nationalism, which has now been firmly ushered in with the re-election of Donald Trump in the US, will affect law and policy in these fields. It seems beyond doubt that sustainability and climate change, along with the developments around digitalisation and algorithms/AI, are among the most critical issues of our time. When exploring the issue of sustainability and especially climate, we can focus in particular on IP laws and competition laws, as each of these areas has started to grapple with specific challenges and made some progress. In the field of IP law, the role of IP and how it can foster sustainable technologies and other green innovation has become a focus of the debate. With its traditional focus, IP law has been designed with innovation incentives in mind by providing innovators with exclusive rights to their creations. This function is crucial in the green transition. The IP law framework can effectively be used in more or less unadulterated form to foster green innovation. However, given the need to rapidly scale and diffuse green technologies, a close eye needs to be kept on dissemination and in particular incentives for and costs of the dissemination of green technologies. For instance, patents related to renewable energy technologies, such as wind, solar, and bioenergy, have substantially increased over the last decade. Yet, the roll-out of these technologies on a global scale is something that deserves attention so as to ensure that they are accessible in developing nations. We have seen work in this area that has led to new proposals and the adoption of mechanisms for compulsory licensing, patent pools, and technology transfer, with WIPO’s ‘Green Platform’ being just one example in the area. Competition laws have also started to play a role in this area. Some EU Member States (and the EU itself), but equally other jurisdictions from Singapore to New Zealand, have been at the forefront, aiming to provide businesses with individual guidance and publishing general guidelines on how business activities fostering sustainability interact with competition laws. Similarly, we have seen first cases in Europe in which competition agencies pursued companies that have been restricting competition, thereby harming sustainability. For example, the European Commission pursued car makers in the AdBlue case for restricting innovation competition around better emission cleaning technologies. In some jurisdictions where there are rules on superior bargaining power, these might equally be used to foster different aspects of sustainability, ensuring that the weakest players in the market are not exploited by, e.g. powerful retailers. Overall, while (too) much still needs to be done in terms of sustainability and the climate, the fields of law covered by GRUR International have developed and adjusted their tools to play a role in addressing these challenges. The digital and AI fields are equally fields of global relevance in which we witness numerous challenges within existing legal frameworks, and GRUR International has featured many of them over the years. The role of IP has already been at the forefront of the digital transformation with questions around protection in the digital world. Yet, new frontiers are already emerging as complex questions around creations by and the creativity of AI become apparent. What protections are afforded where AI systems are trained on human-created material? How should creations made by, through or with the essential help of AI be treated? Questions around creation and inventions and subsequent ownership are crucial. How should the ownership of AI-generated art and inventions by AI be treated in applications for patents? We are seeing first attempts to regulate the space, such as the US Copyright Office’s decisions on AI-generated works. The blockchain space raises additional questions, particularly regarding digital ownership and copyright in the context of Non-Fungible Tokens (NFTs). Competition law has also seen an evolution, with questions about tech giants and the interaction with data and data protection laws becoming competition concerns. The adoption of the European Union’s Digital Markets Act (DMA) with the aim of protecting fair and contestable markets is a prime example. Other jurisdictions have also opted for the adoption of new regulatory tools that address digital markets with monopolistic tendencies. The algorithm and AI revolution further challenges the competition law framework. We have already seen a wide ranging discussion about algorithmic and AI collusion, and we are witnessing an emerging debate around abuses, market concentration and its effects in the AI domain and its AI stack, and a focus on the control of the digital value chain. The protection of innovation is a core theme in these debates. Overall, as digital and AI advances continue to transform our world, the legal frameworks have developed and will continue to have to develop to adjust to the emerging challenges, whether or not in the area of IP and competition rules. It might not be surprising that the recent years are described as a decade of increased global polarisation. Deepening social and political divides are visible all over the globe, and social media have certainly not been a moderating influence. The latest sign is the re-election of Donald Trump in the US, whose new administration is expected to push further in the direction of de-globalization. It is not farfetched to predict that the coming years will be a time characterized by even more protectionism and nationalism disrupting established global cooperation and trade. In other words, de-globalization will accelerate, thereby possibly increasing economic uncertainty and straining international relations. But what does this spell for the challenges in the sustainability and digital and AI areas discussed above? For sustainability, the new era of protectionism will have familiar consequences. On the one hand we might see a slowing of the pace of green transition and green innovation. While tariffs and other trade barriers could increase the costs for the adoption and development of green technology (e.g. rare earth minerals), the effects on green innovation work in a less direct way. On the one hand, the dissemination of green IP could be restricted due to nationalism in the form of national security restrictions. On the other hand, we might see IP law being used to protect domestic producers while harassing foreign producers and using alleged IP violations in trade disputes. In competition law, we might observe a reversal of the move towards a global consensus that competition and companies can play a role in sustainability matters. In fact, we might see the ‘anti-woke’ capitalist backlash building up steam, with antitrust rules used to harass companies that engage in ESG related matters. In other words, we could see more actions like that recently by Republican attorney generals in the US against financial investors and their climate-related actions in the coal industry. Whether such actions will ultimately be successful in court is a different question, but they might well sow doubt on the legality of corporate sustainability initiatives. This contrasts sharply with the legal certainty that many competition agencies have tried to provide to companies, and might hamper the latter’s global actions. Another avenue that might affect sustainability is national security concerns, in particular in mergers related to technology crucial for the green transition. For the digital space including algorithms and AI, the new era of protectionism will have some substantial effects. The area of digitalisation and AI is one that seems intrinsically linked to trade and competition between countries. Many countries identify this area as one of national strategic interest. The interaction between national security concerns and IP may become a crucial battleground that allows states to exclude foreign companies from any new and developing technology. Similarly, IP laws could be the tool of choice to pursue foreign companies in the digital and AI area. In the competition-law field, protectionism and nationalism might have two distinct effects. On the one hand, less harsh enforcement against dominant domestic companies, since dominant companies in the digital sphere are seen as a strategic and national security asset. At the same time, any antitrust action or regulatory action (such as e.g. the DMA) by foreign authorities against domestic tech companies will be seen as hostile and might be answered with trade retaliation. On the other hand, foreign tech companies will be seen as suspicious and worthy of antitrust scrutiny. Similarly, any merger of domestic and foreign companies in the tech area will likely face increased scrutiny. Overall, it is not without irony that the issues we are facing are becoming more globalized than ever, while de-globalisation takes hold. We can expect more heterogeneity or often even opposing approaches to the same (global) problems. Problem-solving within established (multilateral and multinational) institutions will become more difficult and possibly less influential. As a reaction, we might see a move away from formal to informal or even private cross-boundary networks for addressing global issues. For example, private standard setting organisations could gain an even greater role in addressing such issues. Yet, where such organisations face challenges, including open hostility, even such avenues for co-operation will become more difficult to maintain. In these situations, the individual legal comparativist will have an increasingly important role to play and, with it, outlets like GRUR International. The study of other systems and their solutions to problems can provide crucial insights and could be the main avenue for more global approaches to the challenges discussed here. In a de-globalized world where foreign and international measures are seen with suspicion, the comparativist has a new role. The internal critique of the existing national approach by the comparativist can be an argument for internally introduced change; the only kind of change perceived as legitimate in a de-globalized, nationalistic world.
Over the past decade, digital assets have transformed from a niche technological experiment into a mainstream financial instrument, attracting institutional investors, governments, and retail traders. With the increasing adoption of blockchain technology, cryptocurrencies are reshaping traditional financial systems, offering new mechanisms for wealth creation, transaction efficiency, and decentralized financial services. This article explores the profit opportunities and risks associated with the cryptocurrency market, highlighting its rapid evolution and significant impact on the global financial landscape. A key focus of this study is the investment potential within the cryptocurrency sector. It examines various opportunities, including short-term gains driven by market volatility, long-term asset appreciation, passive income through staking, and innovative financial models within decentralized finance (DeFi). However, the cryptocurrency market is fraught with substantial risks alongside these profit opportunities. Extreme price fluctuations remain a defining characteristic, often leading to significant losses for uninformed investors. Regulatory uncertainty poses another challenge as governments worldwide struggle to develop clear frameworks, with potential legal restrictions impacting the market’s stability. Security vulnerabilities, including exchange hacks, smart contract exploits, and phishing attacks, add another layer of risk, making cybersecurity a crucial concern for market participants. Furthermore, the lack of consumer protection mechanisms means that investors may have little recourse in cases of fraud, theft, or technical failures. By analyzing these factors, this article provides a balanced perspective on the potential rewards and dangers of investing in digital assets. The study is supported by academic research, industry reports, and real-world market trends, offering valuable insights for investors, policymakers, and financial analysts. As cryptocurrencies evolve, understanding their opportunities and risks is essential for making informed financial decisions in this rapidly changing landscape.
This paper investigates the speed of price discovery when information becomes publicly available but requires costly processing to become common knowledge. We exploit the unique institutional setting of hacks on decentralized finance (DeFi) protocols. Public blockchain data provides the precise time a hack’s transactions are recorded—becoming public information—while subsequent social media disclosures mark the transition to common knowledge. This empirical design allows us to isolate the price impact occurring during the interval characterized by information asymmetry driven purely by differential processing capabilities. Our central empirical finding is that substantial price discovery precedes common knowledge: approximately 36 percent of the total 24-hour price decline (∼27 percent) materializes before the public announcement. This evidence suggests sophisticated traders rapidly exploit their ability to process complex, publicly available on-chain data, capturing informational rents. We develop a theoretical model of informed trading under processing costs which predicts strategic, slow information revelation, consistent with our empirical findings. Our results quantify the limits imposed by information processing costs on market efficiency, demonstrating that transparency alone does not guarantee immediate information incorporation into prices.