In the article the state, trends and features of financing environmental measures by local budgets in Ukraine in order to justify the possibility of increasing the effectiveness of local communities expenditures on environmental protection were investigated. To this end, an analysis of local government expenditures, including budget environmental programs, the structure and dynamics of environmental tax revenues to the general and special funds of state and local budgets from 2010 through 2020 were analyzed. The distribution of environmental expenditures between state and local budgets, the financing mechanism for environmental protection and the mechanism of providing the local environmental fund have been studied. According to the results of the analysis, it was shown that in the conditions of decentralization, the volume of local financing of environmental measures has increased. However, a significant part (over 50%) of environmental funds was directed to non-priority goals and activities. The share of expenditures of the Environmental Protection Fund for the implementation of definitely environmental measures was low. This does not contribute to solving current environmental problems and does not increase the capacity of local budgets in terms of environmental expenditures. Significant (over 60%) centralization of the environmental tax revenues in the state budget creates unfavorable conditions for the ecological sustainability of some regions. It was established that the main function of the environmental tax – compensatory – is not fully fulfilled. The environmental tax was mainly directed to the implementation of the general functions of the state and territorial communities. In order to increase the efficiency of local budget expenditures on environmental protection, it is necessary to develop criteria for assessing the impact of environmental measures, normative definition of mandatory environmental effects in budget programs and strengthen state financial control over the targeted use of local budget funds.
The democratic development of society has shown that the growth of the welfare of the overwhelming majority of the population through the implementation of effective social and economic policy in the country positively influences public attitude to the government and increases the level of trust in the public sector. A successful mechanism to address the social needs of citizens is the development of an affordable housing financing system for the population. The purpose of the study is to analyze the state of affordable housing financing in Ukraine and determine its relationship to trust in the public sector. The article examines the use of state-administrative mechanisms for realizing the housing rights of Ukrainian citizens. Analysis of the current state of implementation of affordable housing programs is proposed, considering the size of mortgage payments and the volume of housing financing. The analysis highlighted the existence of a housing crisis in Ukrainian society as a result of the extremely low level of funding for the sector. The study provides a comparative analysis of the housing affordability index and the level of trust in government in Europe, according to the Global Value Survey. This has helped determine the place of social housing policy in the system of trust relationships between government, local governments and citizens. According to the sociological monitoring platforms, a dynamic analysis of the balance of trust-distrust of the population of Ukraine to the state apparatus and local government bodies was conducted. Based on a comprehensive and critical assessment of the leading affordable housing programs in the country and trust indicators, this study found that the distribution of powers, incentives, responsibilities, and budget funds within the framework of the decentralization process between the central government and local authorities, contribute to the achievement of the main goals of the state's social policy regarding affordable housing, which positively affects the level of citizens trust in local authorities. As a result, it was determined that during periods of economic and political uncertainty, financing of affordable housing is quite important, because due to such actions the state reduces the level of uncertainty, forms positive expectations of citizens, promotes the increase of stability and trust necessary for sustainable economic and social recovery.
Ігор Брітченко, Олена Михайлівна Пахненко, Pavlo Mykolaiovych Rubanov, Olga Girzheva · 6 authors
Scientific sources demonstrate different attitudes of researchers to cryptocurrencies because they treat them as a category of currency, virtual money, commodity, etc. Accordingly, the relation to the valuation and risk of cryptocurrency as an investment object is different. The purpose of the article is to identify cryptocurrency value formation factors and determine the risks of investing in cryptocurrency. Cryptocurrency is simultaneously considered a currency, an asset with uncertain income, and a specific product, the price of which is determined by the energy costs for mining new cryptocurrency blocks. Thus, the paper examines the risks of investing in cryptocurrency from several positions. First, the study identifies the factors of formation of the value and risk of cryptocurrency as ordinary money based on comparing cryptocurrency with traditional money. Unlike traditional money, cryptocurrency is not tied to the economic performance of a particular country; also, central banks do not control or regulate their mining. Instead, the cryptocurrency emissions depend on the computational capacity of the equipment used for their mining. As a financial asset, cryptocurrency can be a “financial bubble” because their value increasing often exceeds the cost of mining. On the other hand, given the emergence of cryptocurrency as a phenomenon of the information economy, the paper analyses the impact of specific technical features (cryptographic hashing algorithm, the complexity of creating new blocks, the technology of verification of mining operations, etc.) on the risk of investing in cryptocurrency assets.
The article defines the essence of the concepts of cryptocurrency, bitcoin and mining, considers the status of cryptocurrency in Ukraine and other countries. In addition, problems related to the uncertain status of cryptocurrency are indicated, ways to solve them are proposed, special attention is drawn to the disclosure of the conceptual aspect in the qualification of criminal offenses related to cryptocurrency. At present, the use of cryptocurrencies as a financial instrument by various states is increasingly common, and Ukraine is no exception. According to the reports of the Chainalysis platform, Ukraine ranks high in the ranking of both the general use of crypto-assets and their use for illegal purposes. According to the Ministry of Digital Transformation of Ukraine, our state is a leader in the use of virtual assets among the population; the Ukrainian community of blockchain developers is one of the largest in the world and is in the top 3. Cryptocurrency is a digital (virtual) currency, the unit of which is a coin, protected from counterfeiting, as it is encrypted information that cannot be copied, because the emission and accounting of cryptocurrency is based on asymmetric encryption using various cryptographic protection methods, such as Proof-of- work and/or Proof-of-stake. The physical feature characterizes the technical aspects of the functioning of the cryptocurrency, the economic feature is determined by the price that interested parties can pay for it, and the legal feature is established on the basis of a consistent analysis of the types of civil rights objects provided for by the current legislation. So, in the context of criminal law regulation, cryptocurrency is data in electronic form that has a price and is the subject of the right to information. The attractiveness of cryptocurrencies for the criminal world is due to the fact that Bitcoin and other cryptocurrencies are based on the principle of decentralization and the Blockchain system: electronic money is not tied to and is not controlled by any financial authority of any country, users of the system remain anonymous and have equal statuses. Cryptocurrency, the main advantage is its anonymity, in addition, the personal data of the owner of the electronic wallet is kept secret and it is only a set of symbols by which it is impossible to determine the owner, therefore it is impossible to recognize the name or address of such a user, and the history of transactions is open information. Agreements related to cryptocurrency are also anonymous, besides, they are irreversible. Cybercrime has also become widespread, in particular criminal offenses with cryptocurrencies, because in Ukraine and the world, individuals and legal entities are increasingly faced with their illegal acquisition, however, in our country, the legal status of cryptocurrencies has not yet been determined, in addition, so far in Ukraine does not provide for liability for illegal possession of cryptocurrency, currently in the world there are already quite widespread situations of criminal offenses against property (theft, robbery, extortion, fraud), where the object of encroachment is computer equipment, hard drives or portable crypto wallets together with the corresponding passwords from them for the purpose of taking possession of cryptocurrency and receiving funds from its further conversion.
Active use of virtual electronic information environments – metaverses is the most perspective way of information and communication technologies development. In the meta-environment, traditional accounting objects undergo significant changes due to their intangible interpretation, which requires improving their accounting and auditing reflection. Accordingly, the purpose of this study is to improve the methodology and organization of accounting and auditing in the metaverse in terms of identification, recognition, and reflection in the accounting system of non-current intangible assets, goodwill of IT companies, NFT (non-fungible tokens), cryptocurrencies, sales costs and other objects in the meta-environment. To implement the purpose of scientific research, systemic, innovative, and institutional approaches and economic and mathematical modelling, bibliographic and comparative analysis have been used. Given the significant public distrust and active threats in the digital business, the need to introduce an audit in the metaverse to ensure the reliability, integrity, and legitimacy of information flows is justified. The possibility of recognizing from the standpoint of accounting and auditing of all virtual tools and objects of work that carry out the cycle in the meta-environment in the form of NFT, assets due to: uniqueness and separation from other accounting objects; opportunities for free purchase (sale) in the meta space, potential economic value in the case of retention and accumulation; reliable determination of value based on costs, sales contract or expert (market) assessment. It is proposed to classify NFT according to the criterion of useful life on non-current and current assets with the appropriate reflection in the composition of non-current and current intangible assets. The prospects of personalized marketing promotion of products (goods, services) in the metaverse with separate accounting of costs for the sale of tangible and intangible objects to ensure the reliability, analytical, and comparability of accounting information have been defined. As a result, a conclusion was formed on the expediency of transforming the reporting structure of meta-environment enterprises in terms of increasing the share of intangible assets and the potential absence of any tangible assets in terms of the full transfer of financial and economic activities in a virtual environment. The order of structuring the reporting of the enterprises of the metaverse needs further research.
The article is concerned with topical issues of spatial development of territorial communities of Ukraine in the context of decentralization, taking into account the uncertainty caused by martial law and the pandemic. The purpose of this article is to develop a methodical approach to substantiating the directions of spatial development of territorial communities based on the conception, principles, scientific methods, taking into account the criteria of their efficiency and factors of spatial development of territorial communities. To substantiate the directions of spatial development of territorial communities, a methodical approach is developed, which is based on a problem-oriented approach to substantiating the instrumentarium of spatial development of territorial communities and on a cognitive map of causal relationships of spatial development, a model of solutions to the problem of development of territorial communities, which takes into account development scenarios depending on the type of community. The criteria for the efficiency of spatial development of territorial communities can be the following: criteria for the potential of self-development of territorial communities (self-government, self-financing, self-organization); performance criteria – the results of the implementation of programs for the implementation of strategies for the development of territorial communities, development projects, etc. In order to ensure the vital functions of territorial communities under martial law and increase their ability to solve problems in the new realities, when substantiating the directions of spatial development of territories, the following should be taken into account: development of the potential of self-development of the territorial community; problem-oriented management of human resources of the community; organization of training for representatives of territorial communities on the implementation of mechanisms to support enterprises and internally displaced persons; formation of budgets of territorial communities during martial law and post-war status; preservation of the country’s intellectual potential in the post-war period; preservation of the country’s production potential, which will provide both the territorial communities with essential goods and the servicemen of the Armed Forces of Ukraine – with contemporary means of security and food products; financial support for community life; improvement of regulatory policy; ensuring economic and food security of territorial communities, etc.
Research background: The Russian invasion on Ukraine of February 24, 2022 sharply raised the volatility in commodity and financial markets. This had the adverse effect on the accuracy of volatility forecasts. The scale of negative effects of war was, however, market-specific and some markets exhibited a strong tendency to return to usual levels in a short time. Purpose of the article: We study the volatility shocks caused by the war. Our focus is on the markets highly exposed to the effects of this conflict: the stock, currency, cryptocurrency, gold, wheat and crude oil markets. We evaluate the forecasting accuracy of volatility models during the first stage of the war and compare the scale of forecast deterioration among the examined markets. Our long-term purpose is to analyze the methods that have the potential to mitigate the effect of forecast deterioration under such circumstances. We concentrate on the methods designed to deal with outliers and periods of extreme volatility, but, so far, have not been investigated empirically under the conditions of war. Methods: We use the robust methods of estimation and a modified Range-GARCH model which is based on opening, low, high and closing prices. We compare them with the standard maximum likelihood method of the classic GARCH model. Moreover, we employ the MCS (Model Confidence Set) procedure to create the set of superior models. Findings & value added: Analyzing the market specificity, we identify both some common patterns and substantial differences among the markets, which is the first comparison of this type relating to the ongoing conflict. In particular, we discover the individual nature of the cryptocurrency markets, where the reaction to the outbreak of the war was very limited and the accuracy of forecasts remained at the similar level before and after the beginning of the war. Our long-term contribution are the findings about suitability of methods that have the potential to handle the extreme volatility but have not been examined empirically under the conditions of war. We reveal that the Range-GARCH model compares favorably with the standard volatility models, even when the latter are evaluated in a robust way. It gives valuable implication for the future research connected with military conflicts, showing that in such period gains from using more market information outweigh the benefits of using robust estimators.
The rapid development of technologies, their impact on the speed of decision-making, and changes in communication methods have a significant impact on the financial sector, namely on payment systems. In addition to the technological transformation of the payment systems themselves, these changes are transforming the requirements of users who want transfers to be faster, safer, and more reliable. On the international market, the processes of change began several years ago, now they have begun to take place in Ukraine as well. This actualizes the need to assess the current state of the payment system in Ukraine, as well as to study those technologies that have the greatest prospects and significant impact on the payment space. For this purpose, in this study, we assessed the current state and trends in the functioning of the payment system of Ukraine. We investigated its main participants, such as the System of Electronic Payments of the National Bank of Ukraine (SEP), PROSTIR National Payment System, the dynamics of the main indicators. This made it possible to identify and substantiate the main problems and obstacles to the development of the payment system of Ukraine. Among the main ones, we attributed: monopolization of the payment market by international payment systems (IPS), insufficient level of consumer protection and shortcomings of legislation on market regulation, insufficient level of payment and financial literacy, especially of certain categories of the population (pensioners). An overview of the main trends in the development of payment systems under the influence of digitalization and innovation made it possible to identify the most significant technologies. Namely, real-time payments (RTP), SWIFT gpi, artificial intelligence, and machine learning, blockchain, and distributed ledger technology (DLT). In our opinion, these innovations themselves will make payment systems safer, more efficient, transparent, and cost-effective. But it is worth noting that the implementation of technologies is impossible without the complete digitalization of all payments and related services. Therefore, the main direction of increasing the efficiency of the functioning of the payment system of Ukraine is the transfer of the majority of payments to digital format. We believe this can be realized through high-quality coordination of all participants in the payment market, clear and timely implementation of the roadmap for changes, ensuring free and easy access to payment services for all users (financial inclusion), increasing the payment literacy of the population, creating conditions for expanding the payment infrastructure.
One of the essential features of the new economy (neo-economy) is the increasing use of information and communication technologies, which led to the emergence and spread of the concept of "digitalization" as a process of digitalization, which is gradually formed within the post-industrial period of economic development. technical progress and innovative management methods, intellectualization of human capital, the use of advanced technologies, accelerated development of knowledge-intensive industries, giving priority to the production of knowledge and services, the mentality of creative, efficient, rational business. The vision of changes in taxation regarding the inclusion of blockchain technologies in the sphere of tax policy and introduction of taxation of tax differences of their exchange rate, as well as digitalization of cryptocurrency detection and taxation processes in Ukraine, which are currently outside the Tax Code of Ukraine. The world has changed significantly over the last decade. We live in an era of accelerating pace due to the rapid development of high technology. Traditional working tools used for years are losing relevance or disappearing altogether. Digital transformation, as a global trend, is steadily penetrating all industries. It affects both the most innovative and completely conservative areas. First of all, the client changes, both internal and external, his expectations, preferences and requirements. It forms a new demand, which must symmetrically correspond to supply. In the conditions of modification of the external environment there is an urgent need to reorient to modern methods of doing business. Only those companies that immediately translate their services into a more convenient and capacious mobile format of interaction with the client, will win the competition. Online retail and Internet banking, booking tickets and tours with aggregators or calling a taxi through mobile applications have become a reality of everyday life. According to Hampleton Partners, an international consulting firm specializing in technology mergers and acquisitions, the annual volume of transactions for the use of blockchain technology alone will be $6 billion. Many classic business models are giving way to technological innovation. The main message for businesses: "Upgrade or disappear", to which the modern tax system must also be adapted.
The decentralization of finance in the context of reform of local self-government in Ukraine needs the improvement of the tax system i.e. the optimal allocation of taxes between the local and state budgets. The purpose of this research is to enhance the existing experience of budget decentralization with the identification of the practical results of the decentralization reform and its impact on the local territorial communities in Ukraine. The article examines and summarizes the current experience of budget decentralization in Ukraine and the results of the reform, as well as their community impact. The main focus of the study is on the principles of tax policy implementation in terms of taxes and fees credited to local budgets. The purpose of the study is to optimize the tax mechanisms for filling local budgets in Ukraine. The article examines the state of filling local budgets and its impact on socio-economic development of the community. It is determined that the basis of revenues are tax revenues, the share of which is growing every year. The reform resulted in increased interest of local governments in increasing revenues to local budgets, finding reserves to fill them, improving the efficiency of administration of taxes and fees. Thus, the main budget-forming tax is the personal income tax, which in the amount of 60 percent is credited to the budgets of rural, township, urban territorial communities. In its turn, the positive dynamics is the reduction of intergovernmental transfers. Increasing the dependence of local budgets on personal income tax and own local taxes is a positive consequence of the implemented budget reform. According to the results of the study, the directions of optimizing the use of tax instruments in filling local budgets are substantiated. One of the crucial conditions for creating a highly developed market economy is the formation of local self-government as an effectively functioning part of the public sector.
The article explores the use of cryptocurrencies in hotels, restaurants and the tourism industry. Analyzed the legislative aspects that regulate the turnover of cryptocurrencies. In the course of the research, a monographic and abstract-logical method was used (to substantiate the importance of using cryptocurrencies in the hospitality industry and the advantages of implementing a Blockchain system), in addition, methods of comparison, analogy, analysis, synthesis and generalization were used to reveal the content of basic concepts and terms. Today, modern digital currency is presented as an alternative form of money, however, in many countries, operations with cryptocurrency are prohibited in the banking system. In Ukraine, a procedure has been established for declaring cryptocurrencies, where bitcoins are an intangible asset. The Securities and Exchange Commission is starting to develop new tax legislation that aims to legitimize this type of currency. The hospitality industry is especially active in adopting new technologies. Cryptocurrencies allow consumers to pay for services electronically anonymously without the need to use banking institutions. The most popular among all cryptocurrencies is Bitcoin. The first tangible growth in bitcoins occurred precisely in the field of restaurant management due to the purchase of pizza on one of the forums. Today hundreds of restaurants and cafes around the world accept cryptocurrency payments. Blockchain benefits include cost efficiency, standardization, and secure communications. Data such as manufacturer ID and production date is hashed and stored in the Blockchain. Each organization in the supply chain, after receiving the product, adds its unique identifier and the corresponding blockchain date. Cryptocurrency is a very convenient way to pay for goods and services. More and more restaurant establishments are allowing crypto payments. This prompts the authorities of the countries to develop regulatory documents that contribute to the legalization of such transactions, not only in the field of hospitality.
The article highlights the current state of the formation of local budgets in the context of decentralization of financial resources, taking into account the changes made to the budget and tax legislation, the analysis of the revenue and expenditure parts of the local budget is carried out. On the basis of the study, the problems and ways of strengthening the financial base of local self-government bodies have been identified. The main tasks of budget decentralization have been formulated. The sources of filling and problems in the field of formation of local budgets in Ukraine are indicated. According to the Strategic Action Plan of the Ministry of Finance of Ukraine for 2018–2021. the key priorities of Ukraine in the field of public finance management are the efficient execution of budgets and the optimization of resource allocation between the levels of the budgetary system. The fulfillment of these tasks is also the focus of the reform of financial decentralization, which began in Ukraine in 2015 and is aimed at strengthening the financial self-sufficiency of territorial communities. Over the first five years of the implementation of this reform, the share of local bud gets in the consolidated budget of Ukraine has increased from 18.5 % in 2015 to 23.3 % as of June 1, 2020, the share of local budgets' own revenues in GDP – from 5, 1 % to 6.7 % over the same period. However, despite certain positive developments, local budgets are still more than 46 % dependent on transfers from the state budget, which indicates the need for further transformation of the local finance system aimed at strengthening the independence and financial self-sufficiency of local budgets. At the same time, the revealed patterns also indicate the existence of problematic aspects in the formation of the revenue side of local budgets, which actualizes the need to revise the structure of local taxes and fees, as well as the powers of local governments in the field of their appointment, increase deductions from national taxes and fees to local budgets., and, at the same time, popularization of local borrowing and carrying out mass explanatory work on the organizational aspects of this process and optimizing the use of borrowed funds. These measures will increase the level of concentration of funds in local budgets and, accordingly, balance the processes of decentralization of income and expenditure, turning territorial communities into more independent and autonomous participants in budgetary and economic relations.
The author of the article has outlined the problem of finding the most optimal model of the state for of government, because the necessary condition for stable development of society and effective functioning of the state is to ensure the balance between national interests and the interests of the population of regions and territorial communities. The preconditions, political history and periods of the formation of decentralized power in most European medieval states, scientific positions of national and foreign legal scholars on the expediency of implementing decentralization have been analyzed. It has been found out that the vast majority of Western European countries abdicate the unitary state model by introducing decentralization. The leading idea of reforming is to move the center of solving local issues to the local and, in particular regional level that is achieved by optimizing relations between different levels of territorial organization of power. National traditions, formation and functioning of public agencie in the past, specific features of administrative and territorial structure of the state, existence of autonomous territories, multiethnic population have a significant influence on the formation of the constitutional system on the basis of decentralization in the EU countries. The positive experience Poland, France, Italy, Latvia, Germany and Denmark has been studied. The author has theoretically substantiated that the principle of decentralization has been successfully implemented in the practice of the European Union countries. It has been indicated that the prerequisite for the successful implementation of decentralization processes to create an effective model of governance within the system of decentralized government of Ukraine is: the establishment of the rule of law principle; recognition and guarantees of local self-government; equal legal protection of all forms of ownership; democratic and effective electoral legislation; independence, efficiency, accessibility and transparency of the judicial system, functioning of administrative justice institutions; perfect budget process and high financial discipline; availability of adequate social standards; developed public sector and stable tendency towards its development.
The aim of the article is original research on modern conceptual frameworks and approaches, the mechanism for regulating the cryptocurrency market in foreign countries, in particular research on current practice around the world virtual money accounting procedure and taxation. The methodology of the survey. Comparison, methods of abstraction, analysis and generalization, graphic and tabular modeling are the research methods which were used in the article. The scientific novelty. It is defined, that the world experience in regulating the cryptocurrency market is more progressive than on domestic practice. Accordingly, research and borrowing of the best world management practices on the cryptocurrency accounting operations and taxation can be important for Ukrainian Government as an integral step in the evolution of the legislative framework, which will provide efficiency and transparency of mechanism for the regulation of cryptocurrency operations and electronic payments in Ukraine. That experience is especially important to Ukraine, since the Government have selected way to European integration. Moreover, the need to analyze of foreign practices cryptocurrency accounting and taxation are linked with the capacity to use it to solve different tasks by Ukrainian public authorities: first of all, to determine the most effective tools for cryptocurrency market regulation; and, secondly, to improvement of Government regulation into account the best world management practices. Conclusion. It is defined, that the world practices of regulating the cryptocurrency accounting operations and taxation are highly varied, reflecting the specific public management and State politics of the various countries, for example, a significantly different legal framework, evolution of the digital transformation and divide, features in the area of financial management and monitoring and other. In this science work countries were divided into groups: which are where operation with cryptocurrency is legitimate and national Government has steadily developed cryptocurrency market using the administrative and economic (first of all fiscal) instruments and which are where operation with cryptocurrency aren’t legitimate or don’t have legislative. Some of the exposure risks connected with the cryptocurrency accounting operations and taxation and legalization of the cryptocurrency as means of payment were identified by authors. Key words: cryptocurrency taxation, cryptocurrency accounting operations, virtual money, Government regulation, risks
The article is devoted to the study of theoretical and practical aspects of the risks that accompany the activities of economic actors in the cryptocurrency market (both mining and trading) at the micro and macroeconomic level at the beginning of the third decade of the XXI century. The risks associated with the functioning of economic entities in the market of cryptocurrency coins and such risks are the following: lack of legal regulation on the cryptocurrency market and insurance of owners of assets stored on crypto wallets; use of malware in order to access assets rotating on the cryptocurrency market; hacking attacks on cryptocurrency wallets and exchanges in order to steal cryptoassets; loss of assets deposited into accounts of cryptocurrency exchanges in case of bank-ruptcy or closure of these exchanges; loss of the password used to access the crypto wallet; loss of a secret personal PIN code, which is the key to access funds deposited into the crypto wallet at the exchange and used to transfer assets (cryptocurrencies or fiat currencies) to other crypto wallets or a bank card; erroneous transaction due to one number or letter mistake when transferring from one crypto wallet to another or error (when entering bank card number), when transferring funds from crypto wallet to bank card, a mistake of one or more numbers is possible and funds will be transferred to the wrong addressee, in both cases it is impos-sible to cancel the transaction and funds are lost irrevocably; significant volatility in the value of cryptocurrencies, because of which an investor can go bankrupt. It was revealed that the functioning of the cryptocurrency market is also associated with risks to the national economy and security: monetary policy (reduction of control over monetary circulation due to the replacement of national fiat currency with cryptocurrency coins and the loss of the central bank monopoly on the emission of money and reducing the country's income from seigniorage due to mining cryptocurrencies), financial stability (because of the threat of the outflow of deposits from the banking system and replacing them with investments in cryptocurrencies, the possibility of replacing traditional banking, as well as the possibility of avoiding taxation and shadowing the economy) and national security. It has been proven that the intensive activity of an economic entity associated with mining, trading, investing or other economic activities in the cryptocurrency market requires significant theoretical and practical training of the individual and patience and faith in the future of cryptocurrency market activity because of the probability of losing savings invested in cryptocurrencies or investments.Keywords: risk, cryptocurrency, cryptocurrency market, crypto coin, crypto wallet, Bitcoin, Ethereum, cyberattack. Статтю присвячено дослідженню ризиків, які супроводжують діяльність ринку криптовалют, як майнінгу, так і трейдингу. Охарактеризовано ризики, з якими пов’язане функціонування ринку криптовалют, і такими ризиками є: відсутність правового регулювання та страхування власників криптогаманців; використання шкідливих програм та здійснення хакерських атак на криптогаманці і біржі криптовалют; утрата активів, розміщених на рахунках криптовалютних бірж, у разі банкрутства чи закриття цих бірж; утрата паролю від криптогаманця чи втрата секретного персонального PINкоду, що є ключем доступу до коштів, розміщених на криптогаманці на біржі; помилкова транзакція (через помилку на одну цифру чи букву) під час переказу з одного криптогаманця до іншого (також під час переказу грошових коштів із криптогаманця на банківську картку можлива помилка на одну чи кілька цифр, і кошти будуть переказані не тому адресанту, якому вони передбачалися); значна волатильність вартості криптовалют. Виявлено, що функціонування ринку криптовалют пов’язане з ризиками для національної економіки: монетарної політики, фі-нансової стабільності, інвестиційної та банківської діяльності. Доведено, що активна діяльність економічного суб’єкта, пов’язана з майнінгом, торгівлею, інвестуванням чи іншою економічною діяльністю на ринку криптовалют, вимагає значної теоретичної і практичної підготовки особи через імовірність утратити заощадження, вкладені у криптоферми чи інвестиції.Ключові слова: ризик, криптовалюта, крипторинок, криптомонета, криптогаманець, Bitcoin, Ethereum, хакерська атака.
One of the main tasks of financial and economic policy of industrial enterprises is to create conditions for their sustainable development through the use of modern management tools that will promote the balance between resources and potential of enterprises. In particular, such a tool is management methods based on forms of interaction between the state and business in the framework of public-private partnership. The problem of managing sustainable development of industrial enterprises on the basis of public-private partnership, their financial support is covered in the works of such researchers and specialists as I. Ansoff, K. Bowman, P. Drucker, D. Cleland, G. Mintzberg, J. Strickland, A. Thompson, F. Berger, V. Varnavsky, M. Gerard, T. Crystal, A. Reid, T. Voronkova, E. Savas, L. Sharinger and other domestic and foreign authors. Recently, disparities in the gradual dynamics of the formation of financial resources within the state are obvious: revenue sources are centralized only at the state budget level, revenue liabilities are decentralized to the regional and local levels. The greatest impact on the financial autonomy of an industrial enterprise has the amount of own budget revenues, in particular its share in total consolidated revenues. Inter-budgetary transfers from the budget are one of the sources of income of industrial enterprises and to some extent determine the solvency of industrial enterprises. The main purpose of the system of intergovernmental relations, as well as the entire system of public finance, is to provide conditions for improving the quality of life. PPP is seen not only as a tool for financing and implementing individual projects, but as a form of interaction between the state and the private sector, which is built into the management system based on co-financing, risk and revenue sharing, pooling of professional knowledge that serves to achieve certain positive social , economic and political results and is a key element of the industrial enterprise’s strategy to ensure sustainable industrial and resource-sustainable development. The main purpose of public-private partnership in an industrial enterprise within the framework of sustainable development is to achieve public socio-economic interests through the implementation of infrastructure projects of an industrial enterprise. The basis of PPP’s institutional infrastructure in Ukraine can be industrial infrastructure, which operates not on the basis of state administrative structures, but independently. Problems such as improving the legal framework of the partnership, creating a single coordinating and regulatory body, expanding the base of PPP participants (more active involvement of small and medium-sized businesses), and developing a strategy for the development of this structure need to be addressed. The tools of inter-budgetary regulation are considered - inter-budgetary transfers that determine the solvency of an industrial enterprise. The internal risks of industrial enterprises are substantiated. The advantages and disadvantages of current methods of industrial management are noted. The forms of PPP used in Ukraine and abroad are described, the most effective of them are indicated. Deterrent factors of PPP development are determined. The model of PPP at the level of the industrial enterprise is offered. The principles of optimal functioning and development of PPP are determined.
The article investigates the origin and development of distributed registry technology – blockchain. It serves as a database and is a reliable form of information storage. The global application of blockchain technology is widespread. Such countries using blockchain as USA, Estonia, Germany, Japan, Great Britain, UAE were analyzed. The technology is used in various industries and spheres of activity: public administration, non-cash payments, financial and production activities, the sphere of various professional services, the sphere of social security, etc. This allows to simplify activities and improve the level of state development. Ukraine is one of the countries that use blockchain technologies and one of those, where these technologies are used at the state level. The most commonly used blockchain in the field of high-tech enterprises (Fintech), at the household level, the blockchain is closely linked to the circulation of cryptocurrencies. Today there are about a hundred companies and projects in the blockchain industry of Ukraine. Among the main projects using this technology are: electronic land auctions, the activity of the State Land Cadaster, the State Register of Real Property Rights and the System of electronic trade in seized property. The main advantages and disadvantages, existing problems, prospects for development, and domestic projects using blockchain technology in Ukraine are identified. Analyzing users’ search queries on the Internet allowed us to conclude the growing interest in these last hours. SWOT analysis was conducted to determine further prospects for the use of the blockchain in Ukraine: the main strengths and weaknesses of the use of the blockchain in various fields are identified, and its potential opportunities and threats are described.
Antonín Korauš, Miroslav Gombár, Alena Vagaská, Radovan Bačík · 6 authors
During 2020, factors such as the global pandemic, financial uncertainty and the US election saw an increase in the correlation between bitcoin and gold and the stock market. Both bitcoins and gold rose sharply during 2020, thanks to the relentless press of fiat money by governments and central banks that intend to keep their economies afloat as a result of the coronavirus pandemic. As digital gold, BTC appeals to the cashless Internet economy largely for its features, which include continuous price transparency and a lack of restrictions, disruptions or third-party oversight. The paper focuses on the analysis and identification of the relationship between the value of basic cryptocurrencies and gold price movements, as well as the research hypothesis that the value of the most known and used cryptocurrency bitcoin (BTC) increases with the rising price of gold - a special commodity that serves several functions of the world economy. This issue is currently gaining more and more attention also in context of risk management which is the identification, evaluation, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities and mobile commerce in the aspect of the impact of modern technologies and mobile communication platforms on consumer behavior and consumer preferences. Innovatively, we have made our observations of the price of bitcoin in relation to price fluctuations in the gold markets in order to develop a predictive model for simulating the development of the price of bitcoin. The mathematical model was developed on the basis of statistical analysis of the observed data.
The article considers the relationship between modern processes of budget decentralization and macro-financial policy of Ukraine. The focus on deepening decentralization processes in Ukraine remains unchanged. This emphasizes the use of the State Strategy for Regional Development for 2021-2027. The theoretical foundations of budget decentralization were introduced in the works of C. Tibet, W. Oates, E. Bracco, W. Tanzi, A. Aristovnik and other Western researchers. C. Oates defined the decentralization of fiscal powers as a benefit that could lead to a reduction in the size of the central government. This means reducing the tax burden by increasing competition from tax jurisdictions. For quantification at the level of an individual economy, it is possible to use the index of fiscal decentralization. This index consists of two sub-indices: the self-sufficiency index and the index of importance of subnational budgets. The OECD Fiscal Decentralization Database can be used as a source of information on fiscal decentralization. A retrospective analysis of economists has shown an increase in the index of fiscal decentralization and an improvement in the state of subnational entities in a favorable macroeconomic situation. On the contrary, the crisis worsens the conditions of subnational entities and is accompanied by a decrease in this index. With the beginning of the pandemic, there was a crisis situation regarding the macroeconomic support of further decentralization processes. Long-term social problems are deepening: demographic negatives, increasing external outflow of labor resources, shrinking the country's economy, progressive deindustrialization, high resource intensity of production, in particular, low energy efficiency, growing debt burden. The most destabilizing role is played by military events in the east of the country. High regional disproportion logically leads to a violation of the single economic space of Ukraine. The size of the budget deficit and public debt is increasing. The crisis has a significant impact on all macroeconomic processes, in particular, on the macro-financial stimulation of budget decentralization processes. The urgent task is to establish effective coordination of fiscal and monetary policy, as well as increase the capacity to attract loan financing. Extreme conditions force us to temporarily give up strategic intentions as such, which are not urgent. Public-private partnership can get another chance to become an effective mechanism of social interaction. Increasing competition between budgetary institutions and private institutions in these areas has the potential to increase the quantity and quality of public services.
The purpose of the paper is to study the specifics of the organization of issue and circulation of digital money by central banks, to summarize existing global expe-rience and assess the potential impact of digital currencies on the conditions of monetary policy, the functioning of the mechanism of money transmission and ensuring financial stability through the implementation of sound decisions of cen-tral banks in the digitalization of finance. Methodology. The study is based on an analysis of the scientific literature and points of view of foreign and domestic ex-perts in the field of digital technology. It is also based on the experience of the European Central Bank, the People's Bank of China, the Bank of England, the Bank of Israel and the National Bank of Ukraine on the implementation of pilot projects for the issue and use of digital currencies, quantitative and qualitative assessment of the impact of new forms of money on monetary policy, the func-tioning of the transmission mechanism, state finance, efficiency of payment sys-tems and payment transactions. In processing the material of the article used a set of general scientific and special methods of research, such as dialectical, his-torical-logical, system-functional and analytical approaches, generalization, scien-tific abstraction and others. The results of the study showed that the proposed digital currencies of central banks should be considered as a new high-tech dema-terialized form of national fiat money. Having summarized the impact of the issue and circulation of digital money by central banks on the main parameters of eco-nomic policy, it can be argued that their use will lead to significant changes in the structure and functions of commercial and central banks, as well as existing na-tional and transnational payment systems. The issuance and circulation of digital currency can significantly affect the nature of central banks' monetary policy, the conditions under which the monetary transmission mechanism functions, and the implementation of fiscal policy. Practical implications. The study revealed the main advantages and disadvantages of using centralized and decentralized models of issue and circulation of digital money by central banks, identified the direc-tions of institutional changes in the development of the banking system and the implementation of monetary policy in a digitalized economy, which will provide a high level of control over all monetary transactions of market players. Val-ue/originality. Using the experience of pilot projects on the issue and circulation of digital currencies of central banks will help to improve the effectiveness of monetary policy, to activate the mechanism of monetary transmission, to ensure the stable functioning of the financial system and reduce the level of shadow economy and corruption.
The paper examines the essence of cryptocurrency as a method of payment has been investigated and identifies its key features (exchange for goods or services; exchange for classic currency; payment for goods and services; minimum level of possibility of abduction; payments, fast and direct transactions; investment asset; business development in cryptocurrency). Different approaches to determining the legal nature of cryptocurrency are analyzed (cryptocurrency as a method of payment; cryptocurrency as a foreign currency; cryptocurrency as a financial asset; cryptocurrency as a financial pyramid). The conclusions of the EU court, the courts of the national system on the use of cryptocurrency as a means of payment are analyzed. The legal nature of cryptocurrency is determined through the prism of world practices of its use. The possibility of using cryptocurrencies in terms of their ability to perform the basic functions of money is analyzed. The paper examines two attempts of legislators to regulate the issues of taxation, legal nature and legal regulation of cryptocurrency in 2019 and 2020. Attention is also paid to the relevant institutions where you can pay with cryptocurrencies, namely: “Spendabit”, “CoinATMRadar”, exchange office in online networks – WebMoney. According to the National Bank of Ukraine, the danger of cryptocurrency transactions is indicated. Examples of the main risks associated with the purchase, sale, exchange and conversion of cryptocurrencies are given (possibility of loss of funds due to theft, possibility of fraud, lack of infrastructure, significant price fluctuations of cryptocurrencies, lack of guarantees for return of invested funds in cryptocurrencies). In conclusion, attention is drawn to the need for legislative regulation of the essence of cryptocurrency for further effective evolution.
The paper analyzes the main aspects of the organization and support of territorial communities in the field of social security of the population of Ukraine. The main directions of development of the process of providing social services are outlined. The main instruments of budget financing of social protection and social security of the population of Ukraine are determined and the effects that affect the volume of expenditures of the State and Consolidated budgets on the social sphere are investigated. The existing problems in the field of social security are studied and the need to harmonize social standards with the standards of the European Union is emphasized. The thesis is put forward on the need to implement a number of measures for Ukraine's timely response to the sharp increase in socio-economic needs in the global crisis. Emphasis is placed on the problems and prospects for the development of social security in the decentralization process. The range of problems for the effective response of social policy to rapid changes in the development of the modern world economy is outlined. The necessity of the analysis of the EU experience in the field of social security and the need to adapt the best European practices in order to comply with the Western European models of social protection and / or social insurance is substantiated. The need to apply the tools of theoretical and methodological analysis of the conceptual foundations of sustainable development of social security to specific circumstances and realities in Ukraine. The study focuses on the relevance of strategic and operational objectives of the new Law of Ukraine "On Social Services" and the need for further harmonization of existing legislation with the basic standards of the Council of Europe and the European Union.
The article identifies the role of agricultural enterprises, rural communities, and the state in the development of rural areas of Ukraine. The author gives her vision of the category “rural areas” for this study and summarizes the functions inherent in rural areas. This paper determines the integrated function of rural areas, which is to create a spatial basis for comfortable living, economic activity, preservation, and enhancement of bio- and landscape diversity. The article analyzes the main indicators of activity of agricultural enterprises, indicators of agricultural development, and socioeconomic indicators of the level and quality of life of rural residents. It is determined that the positive dynamics of agricultural production in Ukraine is not accompanied with a corresponding improvement in living standards of rural residents. It is concluded that it is necessary to modify the role of agricultural enterprises through compliance with the principles of sustainable development while maximizing their target functions. The paper examines the participation of the state and united territorial communities (UTC) in rural development. It is outlined that in Ukraine support for rural development at the state level is carried out mainly based on a sectoral approach in the presence of elements of a territorial approach. Such elements include the financing of infrastructure projects in rural areas. Decentralization in the country has strengthened the role of UTC in rural development. The paper identifies the advantages and challenges faced by UTC in the process of rural development planning. The importance of maintaining the advantages of rural areas is substantiated. It is emphasized that the development of rural infrastructure, the improvement of its ecological condition is possible with the common efforts of the state, local governments, and enterprises. Keywords: rural areas, rurbanization, decentralization, agricultural enterprises, sustainable development.
The purpose of the research to determine the main features of the use of cryptocurrency and its identification as an object in the account. A comparative description of cryptocurrencies, electronic money and paper money is given. It has been established that there are no grounds to classify various types of cryptocurrencies in the accounting system as ordinary currencies or assets in a given period of time because they: are not regulated by any jurisdictions; it is not possible to identify the issuer or the specific organization responsible for its issuance; cryptocurrency exists only in the virtual Internet environment. Methods. General scientific methods and approaches, systematic approach, general research methods (analysis, synthesis, generalization, comparison), statistical methods. Results. The list of stages for reflection of activity of the business entity with use of cryptocurrency is offered and considered. The mining process is analysed and the list of cost items for the extraction of new digital coins is highlighted. The variant on reflection in the account of operations with cryptocurrency on accounts of accounting is offered. There are options for reflection in the accounting of cryptocurrency depending on its recognition: virtual goods, intangible assets, financial investments, digital money. To calculate the cost of cryptocurrency obtained by self-extraction, it is necessary to consider the main costs that need to be identified and reflected in the account. In addition to cryptocurrency, you can extract altcoins, lightcoins or convert cryptocurrencies into stablecoins, which cannot be extracted, but can only be purchased. The article presents the main aspects of calculating the cost, which include: the cost of electricity for individuals and legal entities in the country; the cost of the necessary equipment, its depreciation and maintenance, depreciation; residual value at which you can sell old mining equipment; hash – the speed of solving mathematical problems with one or another equipment; network load and production complexity; monetary value or exchange rate of a particular cryptocurrency or digital assets. Practical meaning. Despite all the scientific developments, the issue of accounting for cryptocurrency from the point of view of IFRS is quite debatable. On the one hand, most propose to account for it as a specific intangible asset. Virtual currency is a huge amount of computing power and digital assets. At this stage of technological development of mankind, cryptocurrency is gaining a stable position in the international market. Prospects for further research. Rapid development is causing further capacity growth and interest, but may eventually lead to collapse. However, if the price stability of the cryptocurrency is achieved, it can be used in international transactions, not just for speculative gain. However, this issue will be directly related to the legalization of the new currency and its recognition by central banks as a means of exchange or storage of money. There is a need for further research to understand the basic conditions for the use of digital currency in the payments market.