Blockchain Papers

S. E. Demidova

The article is devoted to the consideration of the features of the financial system development in the conditions of technological change, total digitalization of economic activity and social relations. The study presents current Russian and foreign practices and trends in the development of digital technologies in the financial system. The author critically examines the formation of institutions, the use of new tools and mechanisms in the decentralized sphere and the sphere of public Finance. The risks of digitalization that pose threats to certain elements of the financial system are identified. There is no conflict of interests.

Wulf A. Kaal

The market for digital assets has evolved since its inception in 2009. Its rapid proliferation in 2016-18 was followed by significant downward corrections in 2018-19. The article evaluates the central stages of the evolution of the market in digital assets and their effects on market participants. It presents and compares market data for initial coin offerings, equity offerings, and initial exchange offerings in blockchain and digital asset startups. The author examines data trends and their underlying causes in the evolution of the market for digital assets. Particular emphasis is placed on the emerging market for Decentralized Finance (DeFi) and its role in the evolution of digital assets. The article examines data to evaluate the feasibility of a DeFi market evolution in the decentralized market infrastructure environment of the early 2020s.

Maria A. Egorova

Crypto currency, bitcoins and virtual currencies are topics the scientific community has been discussing for years. The Bank of the Russia has repeatedly warned about high risks of investments in crypto currencies and risks in its turnover. Populations of many countries continue to lose their investments in virtual currencies, which are positioned by their developers as tamper-proof. However, there is still a vacuum in the legal regulation of crypto currencies and the legitimacy of their use as legal payment. The article presents the author’s view on a number of issues arisen in the process of crypto currency, bitcoin, digital and virtual currency use and presents ways to solve them in the context of Russian and world experience.

Anna Vital'evna Tikhonova

This article is dedicated to the question of taxation and tax management of a number of operation in digital environment, namely related to the use of cryptocurrency. Special attention is paid to blockchain technologies as a promising tool for improvement of tax management and automation of business processes. The relevance of this work on the one hand is substantiated by the increasing trade volume on the digital markets hand, while on the other – weak foundation, insufficient technical capabilities of tax management of such operations and univerdsally accepted approaches. The results of research can be used by the Ministry of Finances and Government of the Russian federation in development of strategies for improvement of tax policy. The author determines the global trends of recognition/non-recognition of cryptocurrency as a specific type of property, assets of payment method. A brief overview of foreign approaches towards tax regulation of cryptocurrency is presented. The author systematizes the Russian legislative framework on taxation of digital currency, describes the evolution of national approaches to fiscal regulation in this area. A formulation of modern interpretation of cryptocurrency as the object of taxation by different types of taxes (corporate tax, value-added tax, corporate property tax, personal property tax) is provided. The author determines the possibilities for development of tax management with the use of blockchain technologies, as well as forecasts main consequences of such transformations for businesses and the state.

Veronika Andreevna Kinsburskaya

The object of this research is the international standards AML/CFT (Anti-Money Laundering/Combating the Financing of Terrorism) for the sphere of virtual assets (cryptocurrencies) developed by FATF (Financial Action Task Force), and possibilities of their effective implementation into the national legislation. The author examines new revision of the Recommendation 15 and Glossary (of October 2018), explanatory note to new revision of the Recommendation 15, and implementation guidance of the risk-oriented approach towards virtual assets and service providers in the sphere of virtual assets (of June 2019); considers provisions of the Federal Law of July 31, 2020 No.259-FZ “On Digital Financial Assets, Digital Currency, and Amendments to Certain Legislative Acts of the Russian Federation” becoming effective in January 2021. Based on the analysis of most recent international and Russian acts on the questions of legal regulation of cryptocurrencies turnover, the need is underlined for introducing amendments to the Russian legislation with regards to exercising financial monitoring of transactions with cryptocurrencies in Russia. The author indicates certain fundamental aspects related to collection and validation of personally identifying information on the holders of cryptocurrency and tracing of their transactions.

Маргарита Жигас, Svetlana Kuzmina

The article considers the origins of the fourth industrial revolution, the impact of new IT processes and their integration into society and economy. The authors focus on the idea of creating a cryptocurrency Bitcoin and a new payment system based on the blockchain platform. The innovative components of blockchain technology are presented. The technological changes caused by its development are analyzed. The problems of the financial industry and the technological processes occurring in the banking market are analyzed in detail. The prerequisites and the innovation process of the formation of a decentralized monetary system are explained. The authors propose a new concept of «parallel money systems» and formulate the principles of centra­lized and decentralized approaches to the organization of the monetary system. The features of building a decentralized monetary system are described; its advantages and disadvantages are formulated. A number of arguments in favor of the validity of the adoption of the new form of the monetary system is given and substantiated; the difficulties of its development are analyzed.

Б.А. Досжанов

Along with the socio-economic sphere, interest in Internet technologies in public-private partnerships, companies and institutions, organizations allows you to integrate blockchains into large infrastructure. This result can be achieved by giving the user access and changing internal database storage algorithms. The main feature of blockchain technology is that it is based on decentralization. In the case of using any means of protection, if it is possible to crack the database located on the server, then such a malfunction is not allowed in the blockchain. The article discusses the concepts of cryptocurrency, blockchain, and bitcoin, as well as the principles of their operation. Prospects for their development and large-scale impact on financial activities carried out via the Internet are presented. It also describes cryptocurrencies and the technologies and algorithms used in them.

Svitlana Lehominova, Alona Goloborodko

Introduction. The paradigm of the modern development of economic intelligent systems is associated with the introduction of information technology, technology platforms, protocols, and IoT. Understanding the essence of technological breakthroughs and finding ways to implement technological innovations to digitize economic processes should help solve a number of problematic areas of doing business that focus on improving competitiveness. Methods. The methodological basis of the article was the current principles of the theory of innovation, methods of cognition, which are formed in the main works on the theoretical direction of the theory of organization, theory of organizational behaviour, theory of competition and theory of system analysis. Results. The essence is examined and the feasibility of using blockchain technology to increase the competitiveness of the business and reduce the risks of its business is proved. An idea of the functioning of the blockchain technology has been formed and the advantages based on the principles of invariability and accessibility of the tool have been highlighted, therefore they should work on the safety and efficiency of doing business. The experience of introducing blockchain technology by foreign countries is analyzed, possible applications are identified. The modern vitality of economic intellectual systems requires specialized technical knowledge and skills, understanding of the essence of technological processes and access to databases that allow to combine economic and technological pools of knowledge to achieve business goals. Discussion. Prospects for further research will be concentrated in the field of potential applications of blockchain technology on the Ethereum platform through smart contracts with promising use of artificial intelligence. Keywords: economic intelligent systems, digitalization, blockchain technology, Ethereum platform, smart contract, competitiveness.

Марат Рашитович Сафиуллин, Mikhail Valer'evich Savelichev, Leonid Alekseevich Elshin

This article explores the potential of using cryptocurrency as universal currency in the conditions of transition of the global economic system towards sixth technological paradigm. The goal of this research consists in analysis of the patterns of co-evolution of the global financial system, technological system, and global economy. Based on the historical material, the author demonstrates how shift in technological paradigms is accompanied by financial crises, and result in the changes of the world financial system. Over the course of time, the gold served as the universal currency, but the advancement of technologies demanded the transition towards more flexible forms of world currency based on the national currencies of most industrialized countries. Currently, the transition to the technology of the sixth technological paradigm is followed by the global financial crisis. The U.S. dollar is not handling the functions imposed by the latest technologies upon monetary systems. The conclusion is made that finite currencies are being replaced by an innovative generation of monetary systems that are based on cryptocurrency. The authors systematize the innovation forms of investment, accounting, keeping and saving of funds, which are based on cryptocurrency and blockchain. It is demonstrated that innovation financial instruments, including different types of cryptocurrency, tokens, smart contracts, and cryptocurrency exchanges, open new opportunities for effective investment in the technologies of sixth technological paradigm. The results of research can be valuable for the government branches in establishment of the policy for usage of cryptocurrency and blockchain for entrepreneurs dealing with developments in the area of practical implementation of cryptocurrency as innovative currency.

Valliappan Raju

International Journal of Psychosocial Rehabilitation - IJPR, is an editorial & peer-reviewed journal publication for mental health care providers, practitioners, nurses, consumers, and applied researchers, bearing ISSN: 1475-7192.

Savva Shanaev, Arina Shuraeva, Mikhail Vasenin, Maksim Kuznetsov

Practical Applications Summary In Cryptocurrency Value and 51% Attacks: Evidence from Event Studies, from the Winter 2020 issue of The Journal of Alternative Investments, authors Savva Shanaev, Arina Shuraeva, Mikhail Vasenin, and Maksim Kuznetsov analyze cryptocurrency altcoins. Their findings suggest that altcoins with certain characteristics tend to be vulnerable to 51% attacks that result in a significant drop in their value on the day of the attack. The characteristic vulnerable altcoin has a low market capitalization and resides on a proof-of-work blockchain with a low hash rate. Furthermore, when the prices of these coins suddenly increase without a clear explanation, it can signal an impending attack. It is notable that the percentage drop in value due to a 51% attack is much larger than the decrease in stock prices that typically occurs when companies experience a data breach or other cybersecurity attack. TOPICS:Currency, risk management, financial crises and financial market history

Natalya N. Kovalyova, N.A. Zhirnova, М В Филимонова

The main attention is paid to the review of prospects in the field of legal regulation of such new financial instruments as cryptocurrencies as a type of electronic money. A number of bills and laws governing the public relations in question are analyzed. The problems that the Russian legislator is required to solve in order to ensure adequate legal regulation of new public relations are highlighted. The experience of some foreign countries in the field of legal regulation of cryptocurrencies is analyzed. It is concluded that today the development of the legal regime of new financial instruments, cryptocurrencies, is an urgent need. The lack of state regulation in the Russian Federation of electronic payments made in payment systems that use cryptocurrency as a means of transactions introduces confusion into society making the use of digital financial assets in the Russian Federation doubtful, which seems like a denial of world technology. Ultimately, the development of the Russian state depends on the fastest solution to this problem.

Svitlana Nikola, Svitlana Nikola, Светлана Олеговна Никола, Artem HUSIEV

The topic under study is relevant, as the cryptocurrency market in recent years has been characterized by a high level of demand at the level of the global economy. It should be noted that the most common cryptocurrency Bitcoin was developed in 2009, and the cryptocurrency market arose only in the early 2010 s. (after the global financial and economic crisis of 2008-2009), which shows that there is no historical retrospective of the impact of the global economic crisis on the cryptocurrency market. At the same time, since the first quarter of 2020, the world economy as a whole is in recession (a reduction in the global volume of real GDP), which has caused the global economic crisis. Research of the dynamics of the exchange rate value of Bitcoin as the main cryptocurrency in 2020, as well as the dependence of demand in the cryptocurrency market from the stage of the economic cycle and other macroeconomic factors is the purpose of these theses.

С.З. Магомедова, N.A. Suleymanova, A.Z. Atemova, Z.H. Magomedova

This article discusses the development of attractive strategies involving cryptocurrency assets, taking into account their value and potential risks. The object of the analysis in this paper is the cryptocurrency as an investment tool. The article discusses the development of recommendations for attractive investment strategies that include cryptocurrency assets, taking into account costs and possible risks. The subject of the analysis is cryptocurrencies as an investment tool. The place of cryptocurrencies in the context of the development of the modern financial market and financial technologies is considered, it is shown that it is necessary to create an investment portfolio of cryptocurrencies, taking into account the goals of the investor, and the logical relationship between risk and profitability should be observed. Therefore, cryptocurrencies should not be correlated; the investment portfolio should be sufficiently diversified to minimize risk; cryptocurrencies should be liquid, that is, freely exchangeable for fiat currency on the appropriate exchange (for example, dollars, euros). It is shown that the investment portfolio of cryptocurrencies must be formed taking into account the goals of the investor, so that it corresponds to the logical relationship between risk and profitability. Therefore, cryptocurrencies should not be correlated; the investment portfolio should be sufficiently diversified to minimize risk; cryptocurrencies should have liquidity, i.e. be freely exchanged, for example, for dollars and euros. Investors should also consider regularly rebalancing the portfolio, which can help improve its profitability.

Eshmamatova Madina

The article discusses the problems of a new type of electronic money - cryptocurrencies. It is shown that today there is no common understanding of cryptocurrency in the world in some sources, cryptocurrency is defined as the currency of the future, in others - as something unpromising. In accordance with this, the existing formulations of cryptocurrencies were studied and the opinions of experts in the field of electronic money were considered.

Georgiy A. Smirnov

The authors consider several evidences of the crisis state of the theory of human capital. Firstly, we are talking about the observed growth in the profitability of “non-human” capital in comparison with human capital in recent years. And secondly, we are talking about an increase in staff shortages with a growing education system and an increase in the cost of its services. These phenomena have no explanation in the classical theory of human capital. The authors, however, do not believe that these problems indicate the collapse of the theory of human capital. Looking at the problems of human capital in the context of the development of the crypto economy and the underlying distributed ledger technologies, they discover tools that can be used to resolve the crisis or, at least, mitigate its manifestations.

Aleksy Кwilinski, Valeriya Litvin, Ekaterina Yu. Kamchatova, Julia Polusmiak · 5 authors

The study has proved that the use of V-statistics is a reliable tool for assessing the forecast horizon of the entrepreneurship model. According to the results obtained, the forecast time horizon for most of the studied cryptocurrencies does not exceed 30 days when using daily observations. Computer experiments have confirmed the effectiveness of the implementation of machine learning methods and algorithms for solving the problems of forecasting the short-term dynamics of financial instruments, for example, cryptocurrency. In particular, a BART model has been developed or ARIMA-ARFIMA ensembles can be used as the basis for algorithms for automated trading systems designed for online trading. The developed methodological approach and recommendations on the practical application of the system of economic and mathematical models based on the tools of binary autoregressive trees and data mining allow developing a short-term forecast of innovative financial instruments in order to make effective investment decisions on the crypto market. A comprehensive analysis of the state and dynamics of the cryptocurrency market, their features, advantages, and disadvantages allows concluding that despite significant fluctuations in their exchange value and gaps in legislative regulation, digital currencies are a modern stage in the evolution of means of payment. Therefore, crypto assets and IT technologies on their platforms quickly adapt in the modern globalized world and will occupy a worthy place in the innovative digital economy.

Olga Antoncheva, Tatiana Apanasenko

No abstract is available for this record.

Elena Sinelnikova-Muryleva, Andrey Zubarev, Natalia Makeeva, Kirill Shilov · 5 authors

No abstract is available for this record.

E. V. Lapteva

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A. Mikhailov Yu.

The aim of this work is to study the pricing in the cryptocurrency market and applying cryptocurrencies by the Bank of Russia for its monetary policy. The research objectives are to identify the cyclical nature of price dynamics, to study market maturity and potential risks that have a long-term positive relationship with the financial stability of the cryptocurrency market. The author uses the Hurst method with the Amihud illiquidity measure to study the resistance of four cryptocurrencies (Bitcoin, Litecoin, Ripple and Dash) and their evolution over the past five years. The study results in the author’s conclusion that the cryptocurrency market has entered a new stage of development, which means a reduced possibility to have excess profits when investing in the most liquid cryptocurrencies in the future. However, buying new high-risk tools provides opportunities for speculative income. The author concludes that illiquid cryptocurrencies exhibit strong inverse anti-persistence in the form of a low Hurst exponent. A trend investing strategy may help obtain abnormal profits in the cryptocurrency market. The Bank of Russia could partially apply digital currency to implement monetary policy, which would soften the business cycle and control the inflation. If Russia accepts the law ‘’On Digital Financial Assets’’ and legalizes cryptocurrencies after the economic crisis caused by the COVID-19 pandemic, the Bank of Russia might act as a lender of last resort and offer crypto loans. Целью данной работы является изучение ценообразования на рынке криптовалют и возможностей их применения Банком России при осуществлении своей монетарной политики. Задачи исследования: выявление цикличности динамики цен, изучение степени сформированности рынка и потенциальных рисков, имеющих долгосрочную положительную связь с финансовой стабильностью рынка криптовалют. Автор использует методы Херста с коэффициентом неликвидности Амихуда, чтобы изучить степень стойкости четырех криптовалют (BitCoin, LiteCoin, Ripple и Dash) и их эволюцию в течение последних пяти лет. В результате исследования автор выяснил, что рынок криптовалют вышел на новую стадию развития, что означает снижение возможности получения сверхнормальных доходов при инвестировании в наиболее ликвидные криптовалюты в будущем. Однако остаются возможности для получения спекулятивного дохода при покупке новых высокорискованных инструментов. Сделан вывод, что неликвидные криптовалюты проявляют сильную обратную антиперсистентность в виде низкого коэффициента Херста. Для получения аномальной прибыли на крипторынке может быть использована трендовая инвестиционная стратегия. Банк России мог бы частично применять цифровую валюту при осуществлении денежно-кредитной политики, что позволило бы смягчить деловой цикл и контролировать уровень инфляции. В случае принятия закона «О цифровых финансовых активах» и легализации криптовалют в России после экономического кризиса, вызванного пандемией Covid-19, Банк России мог бы действовать как кредитор последней инстанции, предлагая кредиты в криптовалюте.

Jerzy Kur, Marian Guzek

The aim of the paper is an evaluation of the doctrinal foundations of the derivatives and cryptocurrencies as well as their empirical implementation results. The neoliberal policy is based on two elements: a libertarian idea of the minimal state and monetarism of Milton Friedman.

D. V. Milosh, Vladimir Gerasenko

No abstract is available for this record.

Yu. V. Malkova, A.V. Tichkonova

No abstract is available for this record.