The present research explores how blockchain technology and cryptocurrencies challenge the traditional continental civil law framework. By reassessing the legal taxonomy of digital assets, the paper argues against their strict classification as jura in personam, primarily due to the absence of a designated debtor in permissionless networks. Alternatively, it supports the recognition of a sui-generis real right (jus in re) grounded in the concept of ‘cryptographic possession’. Furthermore, classical civil classifications are reinterpreted to address the ubiquitous nature of digital assets and the inherent complexities of jurisdictional localization. The study highlights the legal distinction between fungible cryptocurrencies and Non-Fungible Tokens (NFTs), alongside the emerging fructiferous character of assets deployed within Decentralized Finance (DeFi) ecosystems, which generate civil fruits. To contextualize these shifts, three European regulatory paradigms are evaluated: the French dualist approach under the PACTE Law, the German institutional integration into the banking sector, and the Swiss DLT framework, which innovatively merges substantive rights with digital tokens. Finally, the analysis focuses on the practical implications for the pathology of legal relations, particularly regarding the efficacy of forced execution and the safeguarding of the creditors' general pledge. The paper concludes with targeted de lege ferenda proposals for the Romanian legal system. These include the express statutory recognition of digital assets as intangible movable property in the Civil Code, alongside modern civil procedure mechanisms, such as the judicially mandated surrender of private keys under penalty and automated electronic garnishment, aimed at harmonizing state coercive power with the realities of the Web 3.0 economy.
This informative document explores the evolving digital asset landscape, covering cryptocurrency, NFTs, blockchain technology, Web3, and emerging market trends. It provides readers with practical insights into digital ownership, market developments, and the importance of research when evaluating opportunities in the growing blockchain economy. Collective Shift
The expansion of blockchain technology and the evolution of digital platforms have led to the emergence of new concepts in contractual relations, of which "smart contracts" are among the most significant. These contracts are designed as blockchain-based computer programs that execute the terms of the parties' agreement in the form of digital codes and enable the automatic performance of obligations without the need for traditional intermediaries. Such features have increased the speed, transparency, and efficiency of transactions. However, the introduction of this technology into the field of contract law has raised fundamental questions regarding the legal nature, validity, and enforcement of such contracts in various legal systems, particularly those based on classical traditions. The aim of this research is to elucidate the legal nature of smart contracts and analyze the challenges of their enforcement in the Iranian legal system. The research method is descriptive-analytical, and data have been collected through library studies and the examination of domestic and international legal sources. Additionally, with a comparative approach, some legislative experiences of other countries in this field have been examined. The findings indicate that, despite technical differences, smart contracts can be analyzed within the framework of general contract rules. The principle of party autonomy and Article 10 of the Civil Code provide the capacity to accept this type of contract, and the Electronic Commerce Law, by recognizing data messages and electronic signatures, has established a basis for the validity of digital transactions. However, challenges such as ascertaining the true intent of the parties, determining liability for technical errors, and the conflict between the immutability feature of blockchain and institutions such as rescission and mutual rescission persist. Accordingly, the formulation of supplementary regulations, the development of legal infrastructure, and the enhancement of specialized knowledge appear essential for the safe and effective utilization of this technology.
This study examines the current state of digital asset auditing and proposes a clearer future vision through a systematic review of relevant literature and prior studies. It highlights the fundamental differences between digital and traditional assets, explains the classification of digital assets and their close association with blockchain technology, and analyzes the existing accounting and auditing frameworks considering international standards and provides a brief overview of the status of Egyptian legislation. The study also discusses the evolving role of auditors and the main stages of the audit process in the digital environment. The findings indicate that rapid digital transformation requires the development of advanced auditing standards and methodologies, and that the adoption of data analytics, smart contracts, and continuous auditing, together with enhancing auditors’ technical and professional competencies, contributes to improving audit quality, transparency, and risk management related to digital assets.
Open access
Security, Politics, and Digital Transformation
Financial Reporting and XBRL
Innovations and Analysis in Business and Education
Cryptocurrencies have emerged as a prominent asset class characterized by rapid price fluctuations, growing institutional participation, and continuing debate over whether their price movements are random or predictable. This study examines the randomness and weak-form market efficiency of the top ten cryptocurrencies by market capitalization—Bitcoin, Ethereum, Tether, Binance Coin, XRP, USD Coin, Solana, TRON, Dogecoin, and Hype liquid—using daily closing price data from April 2016 to March 2026 (subject to data availability for each coin). Daily log returns were tested using Descriptive Statistics, the Jarque–Bera test of normality, the Wald–Wolfowitz Run Test, and the Autocorrelation Test. The results show that daily returns for all selected cryptocurrencies are non-normally distributed, exhibiting excess kurtosis and skewness. The Run Test results indicate that seven of the ten cryptocurrencies—Bitcoin, Ethereum, Tether, Binance Coin, XRP, USD Coin, and Dogecoin—do not follow a random walk, while Solana, TRON, and Hype liquid exhibit randomness consistent with weak-form efficiency. However, the Autocorrelation Test reveals strong positive serial correlation across all ten cryptocurrencies, indicating that the market falls short of weak-form efficiency. The study concludes that the cryptocurrency market provides mixed and largely inefficient evidence with respect to the Random Walk Hypothesis, implying that historical price information may retain some predictive value for investors.
Supplementary appendix to the article "Digital Cash and the Governance of Payment Finality." It contains material displaced from the main text for length, referenced at the corresponding points in the article, and forming no part of the manuscript word count. The appendix documents in full the evidence that claims for digital cash treat technical irreversibility as legal finality, with the passages and page references from Böhme, Christin, Edelman and Moore (2015), Cong and He (2018), De Filippi and Hassan (2016), Kiviat (2015), Atzori (2017) and Politou, Casino, Alepis and Patsakis (2019), together with the passages in which several of those authors qualify or abandon the claim. It further sets out the argument that append-only recording does not entail unrecoverable entitlement: the regulatory history of write-once, read-many electronic recordkeeping under SEC Rule 17a-4 and its 2022 amendment; the accounting mechanics by which a chargeback operates as a contra entry rather than an erasure; the equivalence between that mechanism and reversal by subsequent transaction on a distributed ledger; and two limits on the argument, being value irretrievable because no person holds the key, and records whose own existence is the wrong, as with personal data subject to an erasure right.
Nydia REMOLINA LEON, Aurelio GURREA-MARTINEZ, Daniel LIU
This article provides a comprehensive analysis of the treatment of digital assets in insolvency. Given that cryptoassets can be the subject of various transactions—including purchase, sale, custody, and lending—understanding their nature and implications in insolvency is relevant for any firm, not just cryptoexchanges. The article begins by offering a general overview of the world of cryptoassets. It then examines the nature of cryptoassets from accounting, financial, and legal perspectives. While much of the literature on insolvency and cryptoassets has primarily focused on the analysis of whether cryptocurrencies constitute property of the estate, this article explores additional issues, such as the treatment, role and rights of tokenholders in insolvency, the initiation of insolvency proceedings by cryptolenders, and the valuation, recovery, and realization of digital assets in bankruptcy. Such analysis is conducted from a comparative perspective, examining how jurisdictions around the world have addressed some of those issues and how cryptoassets have been used to engineer innovative solutions in restructuring agreements.
Rukhsar Zaka, Faiza Irfan, Sidra Rehman, Muhammad Ahsan Hayat
Cryptocurrency markets are highly volatile, nonlinear, and affected by several internal and external market factors, making price forecasting a challenging task. Accurate cryptocurrency price forecasting can support investors, traders, and financial analysts in making informed decisions. This research paper presents a comparative analysis of machine learning and deep learning models for cryptocurrency price forecasting using historical Aave (AAVE) cryptocurrency data. The dataset consists of 275 records and 10 features, including Date, High, Low, Open, Close, Volume, and Marketcap. The Close price is selected as the target variable, while High, Low, Open, Volume, and Marketcap are used as predictor variables. Five models are implemented and compared: Linear Regression, Support Vector Regression, Random Forest Regressor, XGBoost Regressor, and Long Short-Term Memory. The models are evaluated using Mean Absolute Error, Root Mean Square Error, Mean Absolute Percentage Error, R-squared score, and directional accuracy. Experimental results show that the LSTM model achieved the best performance with the lowest RMSE of 2.74, MAE of 1.78, MAPE of 3.91%, and R-squared score of 0.965. The results indicate that deep learning models, especially LSTM, are more suitable for capturing temporal dependencies and nonlinear patterns in cryptocurrency price data.
Diana Bonilla Guzmán, Sofía de las Nieves García Gámez, Rubén Mora-Ruano, Alvaro-Antonio Salas-Suárez
This study aims to identify the extent to which a country's level of governance implicitly determines and encourages the use of cryptocurrencies, and the main elements associated with the use of alternative currencies to traditional ones. The methodology used is a descriptive analysis of the variables, an econometric analysis through an ANOVA, and the application of a truncated regression model, which aims to bring the research closer to the possible correlation between governance indicators and the rate of adoption of cryptocurrencies. The study concludes that countries with low levels of governance are directly related to the greater adoption of cryptocurrencies. To the best of our knowledge, this study is the first to analyse the relationship between cryptocurrency adoption and institutional governance by comparing two regions with different levels of development. The research is limited by the existence of other factors that influence the analytical framework of cryptocurrency adoption, but the availability of data has allowed the present study to focus on governance aspects. Now, despite the fact that the governance indicators present a global analysis in terms of their measurement, the relevant aspects of each country are not specified. The adoption of cryptocurrencies in some countries may not be strongly related to governance aspects but rather to the friendly regulations that have been implemented.
Cryptocurrency has emerged as one of the most significant developments to accompany the digitization of global finance, and its footprint in India has expanded rapidly despite an unsettled regulatory environment. This paper examines how Indian investors perceive the opportunities and risks associated with cryptocurrency and blockchain technology, and evaluates whether their level of awareness shapes that perception. A structured questionnaire survey was administered to 158 respondents drawn from different age groups, educational backgrounds, occupations, and income levels in Karnataka, and the resulting data were analyzed using percentage analysis, frequency distribution, and the Chi-square test of independence. The findings indicate that a large majority of respondents, particularly those aged 21-30, view cryptocurrency and blockchain as tools capable of improving transparency, financial inclusion, and entrepreneurship, while simultaneously expressing concern over price volatility, cybersecurity threats, and unclear taxation rules. The Chi-square test confirmed a statistically significant association between investor awareness and perception of cryptocurrency (calculated value 19.41 against a critical value of 9.488 at 4 degrees of freedom and the 5 percent level of significance), leading to rejection of the null hypothesis. The study concludes that a clear, balanced regulatory framework combined with investor-education initiatives would allow India to capture the innovation potential of digital assets while containing the risks associated with their adoption.
This article is devoted to the general legal characteristics of smart contracts as a means of disposing of digital assets. Smart contracts are a key mechanism for transferring digital assets, but their legal regime remains controversial and unexplored. The main goal. To make a general civil law qualification of smart contracts as a special form of concluding transactions by order of the Central Bank and to justify their recognition as full-fledged legal means of achieving a legal result. The problems under consideration are the differentiation of the IC from related legal phenomena: computer programs, methods of securing, executing and concluding a transaction. The methods used are: formal-legal, comparativelegal, historical-legal, systematic. Conclusions. The IC is a special digital form of the transaction, which has the highest degree of reliability and accuracy of recording the will of the parties in the presence of objective guarantees of its execution.
Cryptocurrency's convenience is a convenient truth — granted here in full, with receipts. A permissionless ledger settles across borders without account approval, banking hours, or correspondent chains; Nakamoto designed exactly that, on purpose. The correction is that the convenience and the danger are the same property: what makes the transfer fast and unstoppable is that it is final — no chargeback, no administrator, no undo. Institutions can price that trade. A person cannot, and the proposal is that the rational personal policy is a wall, not a judgment call. Offered as a proposal, not a result.
Digital assets, a broad term encompassing crypto-currencies, tokens and digital representations of value, have transformed the financial landscape over the past decade. Ghana has transitioned from an unregulated crypto-currency environment to a structured, licensed digital assets space following the passage of the Virtual Asset Service Providers (VASP) Act 2025 Act 1154. Unlike traditional assets, digital assets exist exclusively in electronic form and are secured through cryptographic techniques, most notably blockchain technology. Bitcoin, Ethereum, and other crypto-currencies serve as prominent examples, alongside digital tokens used in decentralized finance (DeFi), security tokens, and stablecoins. They may serve a variety of functions, including use as a medium of exchange, for investment, or as a means of accessing goods, services, or applications within specific ecosystems. These assets include crypto-currencies, tokens, stablecoins, and other blockchain-based instruments. Global digital assets represent any item of value securely stored and managed via distributed ledger or blockchain technology. Encompassing cryptocurrencies, stablecoins, tokenized securities, and non-fungible tokens (NFTs), the sector has rapidly expanded into mainstream finance, revolutionizing global payments, portfolio diversification, and record-keeping. This article discusses the challenges and opportunities of digital currencies and the way forward. This research shows that digital currencies have advantages like making transactions faster, cheaper, and more accessible and also reveals a lot of disadvantages like creating major risks concerning compliance with regulations, cybersecurity, and potential impacts on monetary policy. The review emphasizes the necessity for robust regulatory frameworks for digital assets. It supports both innovation and stability for the digital currencies. It suggests that policymakers and financial institutions should adapt to changes and face the challenges by integrating digital currencies with existing systems. Overall, this review highlights the potential of digital currencies to transform finance. It also stresses the importance of focusing on the challenges they pose to ensure they can coexist successfully with traditional financial systems. As digital currencies evolve, the Ghanaian traditional financial sector faces pressure to adapt, with CBDCs, in particular, being explored as a secure, regulated alternative to volatile crypto-assets. nThe findings revealed that the central bank must adopt robust regulatory and licensing frameworks must align with Virtual Assets Service Providers (VASP) (Act 2025 Act 1154) by enforcing strict licensing for exchanges and custodians while adhering to AML/CFT (Anti-Money Laundering) directives. Also, the Bank of Ghana and the Securities and Exchange Commission must develop a comprehensive public education programme on the digital assets in the financial ecosystem. Given the novelty of the trend of criminality in the digital asset space, the establishment of specialized cybercrime courts to be presided over by judges, proficient in digital law and cybercrime would be of immense benefit. The mandate of such courts could be to expedite trials and ensure thorough adjudication of complex cyber cases. This would have the combined effect of empowering the Ghana Police Service and Cyber-Security Authority to fully invest time, money, and human resources towards the investigation of cybercrime, as well as serve as a deterrent for criminal elements, ultimately protecting our citizens and providing justice for those seeking redress.
K.E. Otebaliyeva, Zh. T. Shaimukhanova, Z. A. Erzhanova, A. .K. Adibayeva
A smart contract is more than a technical phenomenon; it raises legal questions about intent, transaction form, and obligation performance in a digital environment. Kazakhstani law, including the Civil Code and the Law on Electronic Documents, provides a basis for digital tools in contracts, recognizing electronic forms and the principles of freedom of contract. AIFC law further validates automated systems. However, the lack of a conceptual definition in civil legislation creates challenges for public law. This article argues that smart contracts should not be viewed as standalone contract types but through a functional approach: as either a form of expressing intent or an automated performance mechanism. Special focus is placed on criminal proceedings. The authors demonstrate that the absence of a clear definition complicates distinguishing civil torts from cybercrimes and hinders the use of code as evidence or the seizure of digital assets. The core issue is the discrepancy between traditional civil law constructs, blockchain logic, and current procedural evidentiary standards in Kazakhstan.
Diky Paramitha, Etik Ipda Riyani, Nadhira Hardiana, Kan Wen Huey
Bitcoin has a tendency of price volatility that is much higher than other cryptocurrency assets, this makes a very significant difference from other financial assets that can go beyond conventional market logic thus creating a major obstacle in risk management. This study aims to dissect the extreme anomalies of bitcoin trading volume against the volatility of Bitcoin returns. Using a quantitative time series approach, the study analyzed monthly data on bitcoin price and trading volume using Bitcoin prices in the period February 2015 to December 2025. We assess volatility using the GARCH-X model to introduce trading volume as an exogenous variable. The basic GARCH shows significant volatility persistence, indicating a clustering of high volatility in Bitcoin's returns. This finding results that trading volume is not just a static transaction number but reflects a very crucial information proxy. Every movement of trading activity generates new signals in which aggressive price react. Trading volume is also highly correlated with the volatility of returns, although the volatility of the model indicates the need for careful interpretation. Bitcoin's volatility is not solely due to historical volatility dynamics, but also the impetus from trading activity, highlighting the need to consider accurate volatility modeling in the digital asset market. This research adds value by embedding trading volumes into the GARCH model to evaluate its contribution in explaining Bitcoin's volatility through empirical insights for investment decisions and risk management in the cryptocurrency market
Stanislav Vozarik, Mateusz Nowakowski, Shoeb Siddiqui, Elliot Hill · 6 authors
Gasp is a decentralized exchange designed as an application-specific Layer 2 (L2) rollup with omnichain connectivity, leveraging EigenLayer's restaked ETH for computation correctness and finalization. With a goal of being a consolidation layer for all crypto assets, the Gasp platform employs optimistic rollup technology to facilitate gas-free, native cross-chain swaps without reliance on traditional bridges, ensuring tokens retain their original L1 grade security. By combining an app-chain architecture with escape hatch mechanisms, Gasp guarantees withdrawal, while MEV minimization through Themis architecture reduces value extraction risks. Gasp's proof-of-liquidity framework unlocks staked liquidity, enhancing capital efficiency and liquidity depth by integrating staking with liquidity provisioning. Additionally, the protocol introduces a time-based reward mechanism, incentivizing long-term liquidity commitment via an asymptotic reward curve. This paper examines the current challenges in cross-chain communication, delineates Gasp's architectural innovations and security guarantees, and examines novel approaches to optimizing DeFi ecosystems.
As cryptocurrency is increasingly adopted, regulators must consider whether regulations are needed to protect investors and consumers. In prior research involving a behavioral experiment, we identified the existence of a face value effect when people use cryptocurrency in transactions. Just as prior researchers have found a face value effect when people use foreign cryptocurrency,we found a face value effect with the use of cryptocurrency. People predictably anchor on the nominal amount indicated by the cryptocurrency and fail to accurately convert the amount into their home currency. This cognitive bias results in significant overspending when the cryptocurrency is stronger than the U.S. dollar (USD). This Article examined whether different interventions could reduce this cognitive bias. Based on the results of another behavioral experiment we conducted, we found two interventions did so. First, when prices for a transaction are displayed in both USD and cryptocurrency values, the face value effect and overspending were mitigated. Second, in situations involving bidding on an item with no fixed price, requiring people to write out their bid or payment in USD before bidding in cryptocurrency was even more effective in reducing the face value effect and overspending. Accordingly, we propose the adoption of (1) domestic currency pricing (DCP) for items sold in cryptocurrency that requires the corresponding USD amount to be included for any price in cryptocurrency; and (2) for bidding on items in cryptocurrency, a simple requirement for people to “type out the price” of their bid first in USD, or the “TOP price” for short. These interventions are modest, but they may help reduce unintended overspending due to the face value effect.
This study investigates the growing role of stablecoins within the global financial system and examines their potential integration into traditional foreign exchange markets. Despite the rapid expansion of stablecoins, empirical evidence comparing their market dynamics with those of non-stable cryptocurrencies remains limited. To address this gap, the study adopts a descriptive case study design based on documentary analysis and secondary quantitative market data. The documentary review establishes the theoretical foundations of stablecoins and their relevance to foreign exchange markets, while the quantitative analysis relies on market data collected from CCData, DefiLlama, and Statista. Weekly market observations covering the period from April 2019 to May 2024 were analyzed using descriptive statistics, comparative analysis, volatility measures, Pearson correlation analysis, and one-way ANOVA. The findings reveal that stablecoins exhibit significantly lower price volatility than Bitcoin while maintaining high levels of market liquidity and trading activity. Among the analyzed assets, Tether (USDT) remains the dominant stablecoin, followed by USD Coin (USDC) and Binance USD (BUSD). The statistical analysis confirms significant differences between stablecoins and Bitcoin, highlighting the distinct market behavior of reserve-backed digital assets. These findings suggest that stablecoins have evolved beyond their traditional role as cryptocurrency trading instruments and are increasingly functioning as efficient mechanisms for cross-border payments, liquidity management, and decentralized finance applications. This study contributes to the literature by providing an integrated empirical comparison of stablecoins and non-stable cryptocurrencies while demonstrating how the stability, liquidity, and operational characteristics of reserve-backed digital assets may facilitate their future integration into traditional foreign exchange markets. The findings also provide practical implications for policymakers, financial institutions, and regulators seeking to develop secure and efficient digital payment infrastructures supported by appropriate regulatory frameworks.
This study examines, within an interdisciplinary framework, how digital technologies are transforming international relations in the domains of security, economics, and diplomacy. It treats developments in artificial intelligence, blockchain, quantum computing, and cybersecurity not as separate technical innovations but as interconnected processes that reconfigure states’ power capacities and their relations of interdependence. A qualitative and interpretive method is adopted, combining a review of the literature, content and discourse analysis, and a comparative examination of the digitalization strategies of the United States, China, the European Union, and Russia. The findings show that cyber conflict opens an enduring arena of contestation that complements rather than replaces traditional military force; that AI-enabled systems accelerate defense and intelligence processes while deepening problems of oversight and accountability; and that quantum computing is fundamentally altering the encryption order and approaches to national security. On the economic plane, the competition between central bank digital currencies and decentralized finance is redefining the notions of monetary sovereignty and financial control. The growing power of large technology companies calls state sovereignty into question, while disinformation and algorithmic targeting create new risks for democratic processes. The study concludes that digitalization is a multilayered process whose outcome is not predetermined, and that grasping this transformation requires extending the classical approaches to power and interdependence so as to encompass the command of data, algorithms, and networks.
Tokenization is the digital representation of an existing physical or financial asset on a distributed ledger. It refers to the process of recording traditional assets, such as financial instruments, collateral portfolios, or real-world property using Distributed Ledger Technology (DLT). Asset tokenization specifically involves linking or embedding the economic value and legal rights of tangible or intangible assets into digital tokens created on a blockchain. The concept of Tokenomics describes the ability of organizations to design business models and projects based on the creation, distribution, and trading of digital tokens. These tokens can represent both real objects and intangible assets, including cash, patents, copyrights, and other forms of intellectual property. By enabling assets to be converted into divisible digital units, tokenization facilitates fractional ownership and improves liquidity. This procedure is increasingly being applied to a wide range of asset classes, such as real estate, commodities, equity shares, intellectual property, and personal valuables. Blockchain technology plays a critical role in ensuring the security, immutability, and transferability of these tokens. The aim of this research is to examine the key factors that determine the adoption of asset tokenization in the contemporary financial system. The study analyzes the benefits and costs associated with tokenization and explores current developments and anticipated future trends in this field.
Tanishka Ahire, Jyotsana Bagul, Dr. Archana Bendale
Abstract: The idea of cryptocurrency is really interesting. It started as a money idea and now it is changing how the world thinks about money and technology. Cryptocurrency began with Bitcoin in 2008. Now it includes ideas like blockchain and special kinds of contracts. There are also kinds of money from central banks and unique digital things called NFTs. This paper looks closely at the technology behind cryptocurrency. How it affects the economy, people and laws. It talks about the things that cryptocurrency can do which will probably help it grow. It also talks about the problems that cryptocurrency is facing which might slow it down. The paper looks at what might happen with cryptocurrency in the future and how it will affect the world and money systems. After looking at a lot of research from 2008 to 2023 it seems that cryptocurrency is a concept that could be really big, in the future. For it to really work some technical and other issues need to be figured out. Cryptocurrency has to deal with these issues to be sustainable. The idea of cryptocurrency is still very promising. It needs to solve some problems.. Keywords: Cryptocurrency, Blockchain Technology, Decentralized Finance (DeFi), Smart Contracts, Consensus Mechanisms
Our study examines the impact of climate policy uncertainty on the volatility of Bitcoin, Ethereum and Litecoin. Using monthly Climate Policy Uncertainty Index data from 2010 to 2024, we forecast daily cryptocurrency volatility with a GARCH-MIDAS model. The results show that higher climate policy uncertainty significantly increases volatility across all three cryptocurrencies over the full sample period. Out-of-sample analysis, which captures structural changes in energy consumption, reveals stronger effects for Bitcoin. Ethereum shows insignificant responses following its transition to a proof-of-stake mechanism, while Litecoin exhibits a significant positive relationship with uncertainty. Overall, climate policy uncertainty proves to be a strong predictor of cryptocurrency volatility, particularly for energy-intensive assets. The findings highlight the importance of policy-related information in shaping investor behaviour in crypto markets and provide useful implications for cryptocurrency issuers, retail investors and portfolio managers seeking to manage risk under changing regulatory and environmental conditions.
In near prospect, it is proposed to supplement the country's official reserves managed by state financial institutions with financial instruments created by private individuals in the form of cryptocurrencies. The purpose for this study was to carry out a comprehensive analysis for the goals, objective prerequisites, accumulated experience, as well as the real potential for further process development of including cryptocurrencies in the list of assets accepted as elements of national financial reserves. In the course of the study, the experience of a number of countries with different levels of socio-economic development was studied – from highly developed, leading in the global economy, to countries belonging to the economic periphery. The author notes the incompleteness and ambiguity of the consequences of the attempts to carry out such a bold monetary and financial transformation. The funding of completing the set of tasks set in the preparation of the presented scientific paper was the conclusion that there is an urgent need for a deep theoretical study of measures to balance central banks with financial assets that are decentralized in origin, such as cryptocurrencies, instead of an experiment that is not prepared scientifically, methodically and organizationally, which is expressed in the partial replacement of official reserves of fiat currencies with cryptocurrencies. At the empirical level, it seems advisable for the state to accumulate initially and use the latter in a specially created investment cryptocurrency fund.
Cryptocurrencies have received long-term interest among investors because of the features of Bitcoin since its introduction in 2009. However, it is the same features that pose serious and diverse threats. These risks are very dangerous to the security of investors and the integrity of the market. Although their urgency is immense, there are very few systematic analyses that incorporate both regulatory and technological views. In this research, the mixed-method design is used, and an empirical investigation of high-profile security events is combined with the critical analysis of regulatory and technical literature in order to define, classify, and track the causes of the most widespread risks. The article explores the weaknesses and strengths of the existing laws and strategies that would curb identified risks that cryptocurrencies present. It also suggests practical and tangible solutions, which would make use of new technologies to minimize the damages and risks of cryptocurrencies to a greater extent. The analysis in this study proves that properly reducing risks should be performed in a two-faceted way; it should be done with the help of the regulation gaps in action and the utilization of new, protocol-infused technological limits. This study presents a moderate structure that is meant to achieve market security that does not suppress the dynamism and transparency of the cryptocurrency ecosystem. This study analyzes the problem of cryptocurrency security, financial regulation, blockchain technology, risk mitigation, and decentralized finance.