Наталя Трусова, Viktor P. Synchak, Любов Боровік, Serhii Kostornoi · 6 authors
The article deals with fiscal policy in the decentralized space of the financial system of Ukraine. The methodology of complex, systematic assessment of fiscal policy in the decentralized space of the financial system of the state is grounded. It is proved that effective methodological approach to assessing fiscal policy in the decentralized space of the financial system of the state is a vector auto regression (VAR), which provides dynamic correlation of time series with simultaneous determination of each exogenous and endogenous variable in the system, in case of fiscal impulses (shocks) in economy. The production-institutional function is used which, when adapting to the relationship between GDP and tax burden with specific statistics, changes the type of trend of tax revenue. A method for evaluating the effectiveness of financing targeted programs for decentralized territory has been developed. The dynamics of direct and indirect taxes to the state and local budgets are analyzed and the fiscal significance of VAT in GDP, the state budget and tax revenues of Ukraine is determined. The amount of tax debt and the state budget deficit has been estimated and the structure of tax benefits in terms of taxes and fees in Ukraine is presented. The projected values of real tax revenues per capita are substantiated and the forecast parameters of the level of subsidization of local budgets of decentralized territories are given.
Igor Lyukevich, Irina Gorbatenko, Elena Andreyevna Bessonova
Technical analysis is a popular tool for assessing financial assets. It has fairly well-established tools, namely indicators. In addition, modern financial market has expanded due to the new segment of cryptocurrency. The cryptocurrency market is both decentralized (by blockchain technology) and centralized (by cryptocurrency stock exchanges). It is highly heterogeneous as there is bitcoin, on the one hand, and numerous multifaceted altcoins and stablecoins, on the other. Its significant volatility allows one to use low leverage of margin trading, small lot amount, and low commissions. There is a boom in the growth of the number and volume of individual investments in modern financial market. At the same time, most of the research focuses on automated and algorithmic trading and is devoted to finding ways of using artificial intelligence to build trading strategies, which is suitable for professional traders only. The goal of the study was to substantiate the use of one of the well-known technical indicators for planning investment strategies by individual investors in the cryptocurrency market. The features of the cryptocurrency market have been identified for planning trading strategies to achieve the goal. False and reliable signals generated by the most popular oscillators in the cryptocurrency market, i.e. the MACD, Scochastic and RSI, were analyzed. The research was conducted using technical capabilities of the TradingView web platform. It was concluded that the MACD oscillator which is one of the most popular overbought / oversold indicators, does not work properly in the cryptocurrency market when it is necessary to determine historical lows or highs, since it is based on absolute price values. The Stochastic oscillator also does not work properly in this situation. The Stochastic gives false signals on short timeframes even though it is based on relative price values. The innovative nature of the results lies in the conclusion that the RSI oscillator is the most reliable for developing trading strategies based on historical highs and lows of oversold / overbought indicator. It 'absorbs' impulsivity by dividing absolute values of the averages of all positive candlesticks by the average of all negative candlesticks. Theoretical significance of the study lies in proving the hypothesis that the choice of technical indicators for creating trading strategies depends on the market segment. Its practical significance lies in finding a financial solution for an individual investor, namely, in justifying the procedure for individual investors to use a simple, understandable, technical indicator (RSI) available on all platforms in the cryptocurrency market.
The paper discusses the influence exerted by financial systems on the change of the financial sector and its further development. The study is relevant since there is need for building up more trust in blockchain. In the course of the research, the main trends of decentralized financial systems were identified and presented, including the problems related to decentralized financial systems and options for resolving them. The study is aimed at defining the problems and searching for ways to tackle them when regulating decentralized finances (DeFi) in order to ensure effective regulation on the part of the Central Bank and control risks. Rather than eliminating the need for regulation, DeFi, in fact, has to be regulated so as to achieve its main decentralization goal. In addition, DeFi presents a potential possibility for developing a fairly new regulation method: the idea of “integrated regulation”. The paper considers various approaches to regulation, which can be integrated in the DeFi design. It can potentially lead to the decentralization of both finance and its regulation, which eventually expresses RegTech (Regulatory Technology), which is used by financial organizations for being able to meet the requirements of the regulator more easily. The study defines the problems that are encountered in the course of using DeFi and points out the possible ways for dealing with them, including a way for switching to blockchain independently so that the transaction is not charged in ETH for calculation on blockchain; reducing the complexity and costs of use and understanding of DeFi software by most users. A whole lot of risks that decentralized financial protocols are susceptible to is analyzed: vulnerabilities in the code security of smart contracts, their stacking and layout; oracle risk, which is subject to manipulation in the process of data transfer; the financial risk of high volatility, regulatory risk and crisis of the global economy due to the inability to predict in which way the Covid-19 pandemic is going to be resolved.
The rapid development of blockchain allows us to refresh and update our technological approaches to the formation of business information. According to experts future blockchain ecosystems will form a different philosophy of organizing financial and management accounting. The aim of the study is to identify trends in the development of blockchain technology, forecast the consequences of its application in the accounting and information area of economic entities. Its methodology is based on the use of the following methods: analysis and synthesis, comparison, systemic and logical approach, the method of analogies and grouping. The paper provides an overview of studies of authoritative global platforms about the potential of using blockchain technology and distributed ledgers in the financial, economic, accounting and control spheres. The authors analyzed global initiatives for the development of blockchain technology which actively had being discussed in the world community. The essence and approaches to the definition of blockchain are shown, as well as the classification of blockchain systems types. The trends in the development of blockchain in the field of management activities and the potential possibilities of its application at certain stages of the accounting process are revealed. It is concluded that the use of a blockchain system is an effective platform for the information exchange between economic entities, ensuring its reliability, safety and transparency, forming an instrumental basis for the transactional accounting development. The study may be of interest to national regulators, investors and financial market participants, as well as international business and professional communities.
Subject. This article examines the impact of cryptocurrencies on the global financial system. Objectives. The article aims to identify, systematize, and analyze the influence of cryptocurrencies, as well as the blockchain, on the global financial system, and identify the opportunities and limitations that exist at the present stage. Methods. For the study, I used the methods of logical and statistical analyses, systematization, and forecasting. Results. In accordance with the original hypothesis put forward, the article reveals that cryptocurrencies do not represent such a powerful part of the global financial system today to consider it as a driver of changes in this system, but large enough to provoke a crisis similar to the coronavirus one. Conclusions. Today, cryptocurrencies are one of the promising financial instruments, the influence of which in the global financial system can significantly increase with the appropriate actions of the economic agents themselves. The positive impact on the elements of the global financial system will make cryptocurrencies more instrumental in the global foreign exchange and capital markets.
Peculiarities of territorial community (hromada) development management are revealed and theoretical approaches to budget decentralization in Ukraine are substantiated. Based on the analysis of the composition and structure of local budgets, as well as the calculation of financial independence of territorial communities (hromadas), it is proved that the current budget system of Ukraine is characterized by a high degree of budgetary resources centralization, which does not provide real independence. Building an efficient model of fiscal decentralization consists in determining the tax potential of a separate administrative-territorial unit (territorial community). For further success of decentralization, it is necessary to determine the optimal amount of government functions that are appropriate and cost-effective to delegate to the appropriate local level on a permanent basis, thereby converting them into the local government's own functions.Purpose of study. The aim of the study is to assess the impact of budget decentralization on the sustainable development of territorial communities (hromadas), to determine its relationship with changes in the administrative-territorial structure of Ukraine and to strengthen the financial independence of newly established institutions (amalgamated hromadas).Methodology. In the course of the research the following methods were used: analogy and comparative analysis to identify the features of the implementation of fiscal decentralization in different countries of the world and in Ukraine; settlement and constructive – used in determining the indicators of territorial communities' financial independence in the process of budget decentralization implementation in Ukraine; abstract-logical to reveal the main threats to the financial security of territorial communities and justify proposals and recommendations to ensure their sustainable development.Results of the study. The study showed the presence of certain features in the implementation of budget decentralization reform in Ukraine in modern conditions due to a number of macroeconomic and institutional factors with a long-term and globalization nature of manifestation. They led to the emergence of clearly defined trends and patterns of change in the choice of regional development financial instruments, which will further improve the process of development management of Ukrainian administrative-territorial units in terms of decentralization to achieve the priorities of socio-economic development.Peculiarities of territorial community development management are revealed and theoretical approaches to budget decentralization in Ukraine are substantiated. Based on the analysis of the local budget revenues composition and structure, as well as the calculation of the territorial community financial independence indicators, it was proved that the modern budget system of Ukraine is characterized by a high degree of centralization of budgetary resources.It has been substantiated that the difficulties arising in the financing of state budget expenditures under both unitary and federal systems are largely due to the imperfection or inconsistency of certain provisions of the Basic Law (the Constitution) with the current state of interstate relations and the domestic political situation.Conclusion. It is emphasized that the main problem to be solved to build an effective and efficient model of fiscal decentralization is to determine the tax potential of a particular administrative-territorial unit (territorial community) and the optimal volume of state functions that are expedient and cost-effective to delegate to the local level as own functions of local self-government.
The main components of blockchain technology, specific features of this technology, the basics of this network, and technological features are identified. A SWOT analysis of the advantages, disadvantages, opportunities, and threats of this technology is conducted. The specifics of Smart Contract implementation as a way of exchanging digital values in the Blockchain are studied. The directions of Blockchain technology development in accounting, insurance, supply chain management, smart trade, storage, and data exchange are investigated. The specifics of the application of blockchain technology in business are studied according to their experience, contents, and limits (complications of accounting, the risk of neglecting the interdependence of key blockchain concepts, fraud risk for cloud services).
Problem setting. An important condition for the financial security of any state is full control over the monetary system, which allows not only to perform tasks in the field of regulation of social processes, but also to predict their further development, to determine priorities. Legislation regulated such types of financial security as budget, tax, banking, monetary, currency, investment, debt and others. Legal relations within these areas of financial activity of the state are clear to its participants, they function in the material "physical" world and the state only corrects them by making changes and additions to existing legal norms and laws. The rapid development of information technology (digital revolution) has penetrated and continues to affect all spheres of society. In IT, there is a direction that works to improve financial technologies. The creation of a virtual currency or cryptocurrency, i.e. virtual money, can be considered a revolutionary discovery in the field of financial technologies. Money is the main component of the state's financial sovereignty, the basis of its existence. The monopoly on the issuance of money and control over its circulation has always belonged to the state represented by central banks and other financial regulators (Ministry of Finance). In essence, the state has an objective need to issue, control and supervise its currency (one of the features of the state in general is the collection of taxes, i.e. money in the form of taxes). Therefore, the issue of protecting financial security in the circulation of virtual currencies is important for any state. The purpose of the research is to analyze the legal regulation of virtual currency in the areas of banking, tax, budget activities of the state and activities related to combating and preventing money laundering. Analysis of resent researches and publications. The essence of such a new financial phenomenon as virtual currency, its functionality, types and principles of operation were studied in the works of domestic scientists M. Kucheryavenko, A. Kud, E. Smychok, A. Ovcharenko, O. Glushchenko, S. Khvalinsky and foreign - Fredrik Schneider, E. Gots. At the same time, there is a separate aspect of this problem – these are the challenges and threats that arise and tend to increase in the financial security of any state, namely - in the banking system, tax and budgetary relations, in the field of money laundering by criminal means. Articles main body. The emergence of a new virtual currency, money that is emerging, existing and disappearing forever in cyberspace - this is in the full sense of the word a new challenge to financial security. Legislatively regulating the circulation of virtual currency in detail is a difficult task, because the very algorithm of its operation, originally laid down by the founders - provides for the purpose of avoiding such regulation. The circulation and operation of virtual currency is based on mathematical schemes and formulas, which gives it stability to any state and centralized regulation. The main advantage of virtual currency is its anonymity. The personal data of the e-wallet owner is kept secret. Sometimes the transactions themselves contain such a complex and confusing pattern of movement, which generally disappears in cyberspace. The circulation of virtual currency is not controlled by the state. Does this pose a threat to the financial security of the state? Really, and serious. After all, an alternative currency and a payment system operating in cyberspace have been created, improved and are gaining momentum. Cryptocurrency becomes a competitor to the national currency of any state. Therefore, it should be noted that the state has grounds to interfere in the regulation of cryptocurrency circulation. What are the direct threats and risks from the existence of a virtual decentralized cryptocurrency system? These threats can be divided into areas of financial activity of the state and identify the most important of them. These are the banking sector, the monetary sphere, the tax and related budget sphere, the legal relations in the field of financial monitoring, the debt sphere. The introduction of digital currencies and blockchain technologies threatens to destroy the banking system in its traditional form. The fact is that virtual currencies and the blockchain allow any entity (physical and legal, etc.) to communicate economically directly, bypassing any intermediaries. And modern banks are such classic intermediaries, in addition to the monopoly type. Problems also arise in the field of tax evasion with the help of virtual currency. Such activity can be taxed only if one condition is met - if users of this network (real taxpayers) will be willing to declare and keep records of their transactions with virtual currencies. And will there be many such people? It is clear that the risks of tax evasion in the circulation of virtual currencies pose threats first in the tax sphere, destroying the state's ability to protect its economic interests, the ability to realize and develop the country's tax potential, and then create threats to budget security. Virtual currencies that can be exchanged for real money pose a threat of their illegal use for money laundering and terrorist financing. They may allow for anonymous transfers if the sender's and recipient's identities are not properly established. In this situation, there is no control body with which to track and detect suspicious transactions. Today, we can give examples of services designed to hide sources of virtual currency, transactions with them and complete anonymity. Yes, anonymizer means "dark networks" and "mixers", which are designed for these types of operations. Their types are the Tor network (anonymous network), Dark Wallet (anonymous network service), Bitcoin Laundry (mixer), Cold Storage, Hot Storage. Conclusions. The emergence of Fintech in information and telecommunication technologies, on the basis of which a system of virtual currencies and decentralized payment systems was developed and implemented, has created a number of serious threats and risks for the world. The main principle of the virtual currency is anonymity, which allows users to completely prevent government and financial control by the authorities, which is a very attractive prospect for many of them. Unregulated cryptocurrency market threatens the financial security of the state in the banking, tax, budgetary spheres and legal relations in the field of money laundering. The only way to counter these threats is to take full control and supervision of the decentralized system of virtual currency circulation. Unfortunately, the creation of an alternative centralized system of virtual currencies, which is subordinated to state and financial institutions, is not able to completely solve this problem.
Relevance of the research topic. Research actuality is predefined by that question of process control of reforms and decentralization of power for the sake of providing of steady development of country the reformation of educational industry inalienably related to the process. Implementation of strategic tasks of reformation of the system of education, that will provide the increase of her quality and competitiveness, possibility of integration in European and world educational space, possible only on condition of sufficientness of financial resources for her functioning and development. Thus the problem of sufficientness of the financial providing of education remains actual on the modern stage of reformation of administrative-territorial device of country. Formulation of the problem.One of forms of financial participation of the state there is educational субвенція in providing of quality education. Educational subvention is money that is distinguished from the state budget after the special formula on financing of establishments of education. The operating mechanism of her extra charge uncan be considered optimal. As a result - the volume of educational subvention does not provide a requirement in facilities on the remuneration of labour of pedagogical workers in the field of universal middle education on a due levels. Analysis of recent research and publications. Modern aspects of solving the problems of decentralization and reforming the administrative-territorial system in the country are such scientists as Pavlyuk A. P., Oliynyk D. I., Batalov O. A., Datsko O. I., Murkovych L. L., Molodozhen Yu. B. etc. [1-4]. The results of our own research on the problem are given in [5-11]. Selection of unexplored parts of the general problem. As there is a problem of imperfection of determination of обстягів of educational субвенції the consequence of that are lacks of money for maintenance of universal middle education in united territorial communities (UTC) on a due levels, there is a decision problem of development of system mechanisms of management financing of education, as pre-conditions of grant of quality educational services and steady development of society. Problem statement, research goals. By the above-mentioned circumstances the predefined expediency of determination of ways of optimization of the system of calculation of volumes of educational subvention, that would allow to provide the sufficient level of financing of education in united territorial communities (UTC), as bases of steady development of the UTC. Method and methodology of research. In the process of conducting research, general scientific (analysis and synthesis, induction and deduction, analytical grouping) and special (abstraction, modeling, etc.) methods of studying economic phenomena and processes were used. Presentation of the main material (results of work). Undertaken a study of efficiency of distribution of educational subvention mechanism between local budgets comes true on the basis of formula that takes into account many indexes. On results 2018 such conformity to law is set: a difference between actual and calculation filled of classes in unit grows into the end of year in the 1 thousand hrn. of proficit/of deficit of educational subvention in a calculation on one student. Imperfection of formula of calculation of sizes of educational subvention is well-proven. It is set that substantial disproportions are, when in one local budgets of volumes of educational subvention sufficiently for the legislatively set remuneration of labour, while in other - raises diminish for of prestige of pedagogical labour, a management, replacement temporally of absent teachers, is not paid cabinets and workshops, a salary is not provided in good time, forced pedagogical are warned of reduction of raises in next months. To imperfection of operating mechanism of educational subvention data of the analysis of situation conducted by us testify in relation to financing of educational sphere in the Zaporizhzhya area. Conclusions. There was undertaken a study of level of financial sufficientness of educational subvention on the example of the Zaporizhzhya area and educed unefficiency of operating mechanism of financing of education in united territorial communities (UTC). It is set that as a result of making alteration to the Budgetary and Tax codes practical steps are done in direction of budgetary decentralization, substantial changes took place in interbudgetary relations and filling of local budgets due to the redistribution of sources of tax receivabless between the different levels of the system. But more detailed analysis of possible consequences of realization of some mechanisms specifies on that they restrain development of united territorial communities (UTC), create the threat of them to financial possibility and assist maintenance of inequality and disproportions in development of territories and do impossible providing of steady development to the country. Such uneffective mechanism is, on our there are ideas, operating mechanism of grant of educational subvention. It is well-proven that one of reasons, that results in the deficit of educational субвенції, next to the optimized not enough network of establishments and presence of schools/of classes with small filled, there is imperfection of formula of distribution of educational субвенції that does not take into account part of envisaged normatively-legal acts Ministry of Education and Science educational services in secondary education. Thus needs a revision volumes of educational subvention and perfection of formula of distribution.
The article analyzes the changes taking place in the investment market due to the emergence of innovative blockchain technology and cryptocurrencies, which are increasingly used as alternative investments in the management of a securities portfolio, along with traditional types of financial assets, such as money, bonds and shares. The methodological basis of the study is a dialectical approach that provides an understanding of the interdependence of technological changes and the rethinking of the role of fractional, decentralized, fluid assets with lower settlement risk, which are digital assets, in comparison with the traditional payment system in fiat currencies. The available current sample period of the cryptocurrency Index (CRIX) is too small to fully explore the investment opportunities of cryptocurrencies. In addition, the evaluation of cryptocurrencies is very different from the evaluation of traditional investment tools. There is also no clarity on the development of blockchain technology in the long term. At the same time, even today, the success of several cryptocurrencies (in particular, bitcoin) exerts competitive pressure on transaction methods from existing financial institutions [1], which determines the need for forecasting and analyzing price movements in the cryptocurrency markets. The article offers a sequence of actions for evaluating the profitability of investments on the example of bitcoin.
The article is devoted to the current state and prospects of further legislative regulation in Ukraine of the legal status of cryptocurrency (cryptoassets), primarily in terms of the need to clearly define its place in the system of objects of civil rights. The author emphasizes on the current uncertainty at the national and international level about the legal nature of cryptocurrency that causes gaps in the legal regulation of this phenomenon, which on the one hand allows its free and accelerated development, but on the other - creates significant legal risks for participants of the relevant legal relationships. Based on the comparative legal analysis of the approaches of different countries to the qualification of the legal essence of cryptocurrency, as well as the analysis of the Laws of Ukraine "On Prevention of Corruption", "On Prevention and Counteraction to Legalization (Laundering) of Proceeds from Crime, Financing Terrorism and Financing Spread of the Weapon of Mass Destruction”, the draft Law of Ukraine“ On Virtual Assets ”№3637 of 11.06.2020 adopted as a basis and prepared for the second reading by the Parliament and opinions of national regulators of financial market and securities market the author considers as a debatable approach of Ukrainian authorities to regulation circulation of virtual assets and, in particular, such their type as a cryptocurrency, as an intangible asset (other intangible goods). There is a contradiction of such a qualification in terms of traditional features of intangible assets (pronounced personal nature, the impossibility of the existence of such goods in isolation from the subject of law without his consent, lack of property and economic content) and the economic purpose of cryptocurrency as a mean of payment. In this regard, the author concludes that there should be an expediency of classifying this object of civil rights as a special (private) form of money, for which he proposes to carry out a more detailed civil law classification with a division into fiat (cash, non-cash, digital) and private (cryptocurrencies and electronic money).
The paper aims to analyse adoption of cryptocurrencies and blockchain technology in the Baltic States in the context of regional competitiveness. To achieve the aim, the following tasks are set: 1) to investigate crypto activity and crypto regulation, 2) to analyse blockchain applications and policy actions beyond crypto space, 3) to investigate interconnections between blockchain adoption and regional competitiveness. The study employs methods of descriptive statistics and content analysis. The study concludes that Estonia’s leadership in the majority of regional competitiveness indicators correlates with its leading position in blockchain adoption not only in Baltic States, but also worldwide, specifically in the area of e-government. Lithuania shows an overall competitive position in blockchain adoption in fintech area. In contrast, Latvia significantly lags behind Estonia and Lithuania in terms of regional competitiveness and adoption of blockchain technology, which is weakened by the regulatory unclarity for virtual asset service providers and the lack of supportive actions from the government for blockchain innovation and its further adoption within and beyond crypto-space.
The object of research is the socioeconomic model of the country in terms of energy efficiency factors in the process of economic development. The author has adapted the taxonomy of barriers and identified a new group of barriers inherent in the socioeconomic models of countries with economies in transition. Achieving the goals of sustainable development is possible by achieving overall energy efficiency, which is provided by the implemented innovative energy technologies. The ability of the studied subjects to perceive and promote innovative energy technologies is determined by the level of their economic development. When building the concept of energy efficient management, the studied subjects should take into account the exhaustion of primary resources against the background of growing needs. One of Harrington's logical functions was used to determine the level of economic development of the studied subjects. In the indicators of the particular desirability of Harrington's logical function, indicators from 0.37 to 0.8 are the potential for development, currently unrealized in the studied subjects, which is the path to sustainable development. According to certain levels of private preferences, economic agents are given recommendations on the economic feasibility of introducing innovative energy technologies. At the same time, the research process involved the identification and localization of energy efficiency barriers in the studied subjects, which expanded the analytical opportunities in terms of providing practical recommendations. Such recommendations, combined with the private preferences of the studied subjects, allowed to formulate a conceptual scheme to increase the efficiency of energy resources of economic development management. The author proposes measures: scaling of grant financing, decentralization of energy sources, introduction of knowledge, cooperation of communities and in the community, development of entrepreneurship and greening of the environment. Directions strengthen the motivation of management decisions in the context of the effective impact of energy factors on the dynamics of economic development in modern conditions and can be used in the development of current and strategic plans and programs.
The emergence of “virtual currencies” is extremely recent, with a history of only 13 years. Being an ultra-new economic tool, it arouses interest and effervescent reactions, especially in terms of definition, but also about the cumulative effects it has begun to produce in the economic world. The subject also becomes controversial due to the fact that, being an economic instrument of absolute novelty, it is reflected in the legislation of very few countries in the world. One of the definitions determines as virtual currency – the digital representation of the value that is not issued or guaranteed by a central bank or a public authority, which is not necessarily linked to a legal currency and which does not have the legal status of the currency, but which can be accepted by natural or legal persons as a means of exchange and which may be transferred, stored and traded by electronic means. The evaluation of cryptocurrency publications has shown that most of them are related to attempts to establish legislative agricultural work for the operation of virtual currencies. The functions of the cryptocurrencies that we have defined are: the exchange and payment function, the hoarding function, the investment function and the attraction of funds necessary for the activity. Thus, we established that virtual currencies, as well as fiduciary ones, have the role of: means of payment, means of accumulation, means of capitalization and investments. Likewise, through this research we managed to highlight the main features and peculiarities of cryptocurrencies. Among the basic characteristics of cryptocurrencies we highlight: the high degree of security, maximum speed of transactions, full freedom from financial organizations, irreversibility of operations, full anonymity of transactions, open source, they can be ”mined”. Another approach was to determine the advantages and disadvantages and risks of using cryptocurrencies. The main advantages of using cryptocurrencies are related to its functions an caracteristics, such as: it represents a real alternative to classic banking services, market freedom, privacy of transactions, high speed of trnasactions, alternative payment methos, increasing the customer base etc. On the other hand there are some disatvantages. They are related mosly with the following risks: legal uncertainty, market volatility, low degree of acceptance, unsecured crypto wallets, risks related to use for illegal or criminal purposes, money laundering risks. Taking in consideration the global trend of the digitization of the society, the share and importance of fiat currencies will tend to decrease for the benefit of virtual currencies. Cryptocurrencies are becoming a real alternative to physical currencies, but its main disadvantage is that the public autorities are missing controlling it yet. Even so, in the nearest future the money could become digital figures.
Object: Object of the paper is to develop theoretical principles that reveal the content, functions and role of cryptocurrency as new, quite controversial means of settlements appeared in digital society. Cryptocurrency is studied as a secondary form of finance virtualization. The investigation is directed on cryptocurrency’s theoretical and practical aspects of functioning.Methods: The investigation used statistical and economic-mathematical methods to analyze the current trend of development in bank and non-bank payment systems. The authors collected data about legal status of cryptocurrencies, then the obtained data was analyzed according to its official status in developed and developing countries.Findings: It was found that the biggest non-bank electronic payment system PayPal, as a secondary form of virtualization manifestation it currently shows higher growth of rate than the biggest bank card payment system — VISA. The position of cryptocurrencies in National Legal Systems of developed and developing countries was collected and analyzed, according to its legal status. The possible risks and controversial questions of cryptocurrency’s influence on price stability, stability of payment and financial systems are determined.Conclusions: Emergence of cryptocurrency in modern society is the evidence of global digitalization. Virtualization in its primary and secondary manifestation form affects financial sector. Secondary form of virtualization results in non-bank sector development, namely non-bank electronic payment systems (e.g., PayPal) and non-institutional digital schemes of settlements (cryptocurrency). Developed countries are mostly more progressive in cryptocurrency regulation than developing countries. In the case of global cryptocurrency spreading wide there are some risks national economies may face. They include the problem of price stability, the stability of the financial system, the stability of payment systems. Generally, the authors substantiate the requirement for search of the complete definition of cryptocurrency that may be integrated into national legal system for further regulation and risks controlling.
The article reveals the essence of public finance as the main tool of the mechanism of regulating financial stability and achieving optimal efficiency of fulfillment of obligations in the process of providing public goods within the financial capacity of the state. After all, in the context of political and financial crises, the military situation in the east, the COVID-19 pandemic, the inadequacy of social development and economic transformation, the need to ФІНАНСИ, ГРОШІ І КРЕДИТ 124 Випуск IІ (82), 2021 study the effectiveness of such a regulatory mechanism is particularly acute. The main scientific approaches to the formation of public finance, which should be considered as a basis for purposeful public administration and is characterized by a set of measures to influence the socio-economic development of Ukraine. The factors influencing the amount of public finances and the ability of the state to perform its functions of financing various expenditures and development programs are studied. The main factors that caused the negative trends in the formation and use of public finances, as well as the shortage of public financial resources are identified. In order to study the decentralization direction of local self-government development and the participation of state support for regional development, the dynamics of the total amount of public finances as a source of financing capital investments of Chernivtsi region is analyzed. The task of determining the volume of participation of public finances in the financing of capital investments is realized by carrying out a structural analysis of the sources of financing of capital investments in the region. The main problems of public finances are considered and proposals are presented, the implementation of which will balance the market economy, correctly determine the amount of resources needed for the state, improve the efficiency of formation and use of budget funds, overcome corruption, reduce abuse in tax reporting by businesses, optimize social programs and benefits and have their financial support.
On the way to decentralization in order to achieve the goals of territorial development and local needs, local authorities can not do without having complete and comprehensive information on the full range of local resources and their effective management. Considering the resource potential of the region as a set of the whole range of resources that are formed in a given area and can be used in the process of socio-economic development and characterized by saturation of factors of production (natural resources, labor, fixed assets, infrastructure, etc.) and intangible factors, it is clear that it is a prerequisite for the implementation of development programs in the region. For the most part, the resource provision of the process of implementation of socio-economic development programs of the region is reduced to financial support, but in order to achieve the goals of such development, the use of non-monetary resources is no less important.The article identifies the components of resource provision of social protection at the local level, including: economic resources (financial and logistical); regulatory resources (regulatory framework, methodology); administrative resource; innovation resource; information resource. Problematic aspects of resource provision are outlined, among which: insufficient financing and low efficiency of budget funds use; lack of interest in finding additional sources of income; too extensive system of social benefits and privileges; disunity of institutions providing social services; insufficient integration and decentralization of services; low innovation of the sphere; insufficient use of information resources. Tools for improving the management of social protection resources are proposed.
О. І. Baranovskyi, Мykhailo Kuzheliev, Dmytro Zherlitsyn, Kostyantyn Serdyukov · 5 authors
Abstract. The first cryptocurrency was born in 2008. Already today, virtual financial assets and tokens are a significant part of trading in global financial markets. The cryptocurrency market capitalization currently exceeds 600 billion U.S. dollars. However, there is a lot of discussion about cryptocurrency functions and the correlation between Bitcoin prices and the basic economic indices. Therefore, the purpose of the paper is to define the statistical substantiation of the influence of fundamental economic indicators on the market of virtual financial assets and the possibility of using cryptocurrency as the investment assets. This article is based on the theoretical principles and methods of econometric analysis; the system approach methods to define the main vehicles and trends of the international financial market. The study presents correlation analysis, regression models with paired and multiple variables. For these models, R-Studio instruments are the main tools of quality estimation and results interpretation. The article shows the results of the correlation analysis of Bitcoin’s U.S. dollar price dynamics and changes in the main stock, monetary market indicators, cryptocurrencies market tendency, levels of the United States fundamental economic indicators for the period from 2014 to 2021. Traditional multifactorial regression models are used to determine the level and the impact of individual indicators of the world stock market at the U.S. dollar price of Bitcoin. A comparison of the level of volatility of key investment financial assets in the market of cryptocurrencies and stock markets is carried out. The authors determine the level of correlation dependence and make a regression model of the impact of fundamental economic indicators and stock market trends on the dynamics of U.S. dollar prices for key cryptocurrencies. The article presents conclusions on trends and problems of using cryptocurrencies as an investment asset, considering volatility and profitability. Implementation of the results allows to clarify the economic essence of cryptocurrencies as a specific financial vehicle, as well as improving the existing models of investment management, considering the statistical characteristics of the virtual financial assets. The main direction of further research is to build models of medium-term prediction of prices for the main cryptocurrencies as an investment asset in conditions of changes in global financial markets, which must consider the fundamental economic indicators of the world economy and trends on key stock and commodity markets. Keywords: virtual financial asset, cryptocurrency, bitcoin, econometric model, financial market, economic indicator, investment asset. JEL Classification D53, E44, G15, C58 Formulas: 3; fig.: 3; tabl.: 3; bibl.: 31.
The subject of the research is the sources of financing of secondary schools in Ukraine and the directions of their optimization are determined. The aim is to study the features of financing of secondary schools in the context of reorganization and to determine ways of economic stimulation of their activities on the basis of the principle “money follows the child”. Research methodology. The work was carried out on the basis of Article 53 of the Constitution of Ukraine, normative acts, legislative acts, financial reports, scientific research of domestic and foreign scientists and practitioners. Research methods: statistical, graphic, statistical and economic, methods of comparison, analysis. The results of the study of the current state of financing of secondary school institutions indicate that in order to solve the problems of the industry, it is necessary to develop a coherent system of measures that will be aimed at ensuring its effective development, taking into account the requirements of European standards. The study also indicates the need for a decentralization reform Scope of the study results. In the context of decentralization and administrative reform, investment in human capital is becoming a leading priority aimed at strategic actions aimed at the economic prosperity of the country. The study of the current state of financing of general education institutions proves that improving the material and technical base, decent wages of teachers make it possible to put the student in the center of attention and create conditions for his harmonious development, and this will provide an opportunity to create competitive human capital for the national economy. To achieve world standards in the field of education, it is necessary to carry out reforms that will provide an effective system of financing. Conclusions. Consequently, the budget deficit for secondary schools affects the decline in the quality and efficiency of educational services. The system of management and control over the activities of budgetary institutions should play a special role. To improve the situation in the field of education financing, it is necessary to form the implementation of budgetary expenditures based on a combination of domestic and international experience, partly from the experience of neighboring Poland, for this it is necessary to carry out an education reform.
Understanding transformative digital phenomena is an ongoing research challenge for the Information Systems discipline. Digital transformation research to date investigated the phenomenon primarily from a firm-centric perspective, but did not explore how individual micro-level practices drive digital transformation more broadly. Our ethnographic study aims to address this gap by exploring how the social practices within which customers use cryptocurrencies drive digital transformation in society more broadly. We offer a theoretical contribution through a novel and inductively derived model exploring how digital transformation in a cryptocurrency context is institutionalized through use. Specifically, our model identifies 10 micro-level practices of cryptocurrency use, and demonstrates how these legitimize the digital transformation of financial services. Finally, our work provides an important empirical contribution and normative guidelines by offering much needed insights related to the emerging context of cryptocurrencies.
<p style="text-align: justify;">Changes in the payment systems of some countries, initiated by the use of cryptocurrencies, have opened up many dilemmas in the economic literature. Although knowledge of this phenomenon has not been yet sufficiently crystallized, some states managed to regulate its use. In this paper, we investigate whether cryptocurrencies can be considered аs а currency, which has drawn increasing attention from regulators who are concerned about tax, insurance and other consequences related to the legal treatment of cryptocurrencies. The subject of the paper is to analyze the history, characteristics and level of cryptocurrency regulation in the world. The aim of the paper is to analyze the possibilities for regulating cryptocurrencies in the Republic of Serbia through the analysis of countries where the use of cryptocurrencies is legal.</p>
Introduction. The active development of the international economy leads to the emergence of new financial instruments, which expands the capabilities of economic entities in carrying out efficient economic activities. However, cryptocurrency coins have become a relatively new, widely used financial instrument used by economic entities to increase the efficiency of payments and investments. The cryptocurrency market is growing rapidly and its capitalization is estimated at trillions of dollars. The main purpose of the article is to study the impact of cryptocurrencies on the international and national micro- and macroeconomics in the third decade of the XXI century. Methods. The theoretical and methodological basis of the article is the fundamental provisions of modern economics, the work of scientists. In the process of research, in particular, the following methods were used: analysis - to study the object and subject of research; abstract and logical (theoretical generalizations and formulation of conclusions on the impact of cryptocurrencies on national and international micro- and macroeconomics). Results. It has been established that cryptocurrency mining and trading has become an objective reality in the second decade of the XXI century, and at the beginning of the third decade already has a significant impact on the national and international economy, competing significantly with fiat money and, as far as possible, filling niches, filled fiat money. It has been proven that mining and trading of cryptocurrencies causes both positive and negative effects at both micro and macro levels, both in the international and national markets. It is noted that the circulation of cryptocurrencies is carried out mainly without legislative regulation (except for El Salvador, the United States and several other countries); however, self-regulation through the “invisible hand of the market” is quite effective. As long as there is no significant regulation of the cryptocurrency market, in our opinion, the cryptocurrency market will develop extremely actively, and its regulation by government agencies may hinder its development. Discussion. The obtained results can be used to expand knowledge about certain aspects of the impact of “mining” and circulation of cryptocurrencies on the activities of economic entities at the micro and macro levels. Keywords: mining, cryptocurrency, Monero cryptocurrency (XMR).
Introduction. Differences in the understanding of the main management and information and security approaches to the formation of an innovative cluster group of SME with large industrial enterprises indicate the ambiguity of ways to measure and evaluate such interaction and its scope, which in Covid-19 on the basis of sustainability, decentralization and European integration requires further study. Methods. The historical and logical method is used in the article; the method of systematization, classification and theoretical generalization; the method of institutional analysis; the method of system analysis; the method of logical analysis and synthesis; the method of graphical analysis. Results. It is proved that the cooperation of industrial SME with large industrial enterprises makes certain demands on them. Before attempting to cooperate with large and medium-sized industrial enterprises, manufacturing SME must have a clear idea of the state of their activities, their own potential and its use, the market position of goods and services relative to competitors. Therefore, the procedure of diagnostics of the state of activity of industrial SME is developed in the work, the leading one in which is the assessment of its solvency. The competitiveness of a production SME, its potential and sustainability are assessed using available methods. Production SME differ in scale and types of activity, policy of its financing, degree of integration into the economy of the region or production cluster, which determines the multiplicity of areas of their support. Discussion. Market support for manufacturing SME should be directed to intensify their activities - assistance in finding markets, customers and business partners, the use of mechanisms for adaptation of enterprises using the full range of opportunities for administrative support. Cooperation of manufacturing SME with large industrial enterprises as a kind of business partnership can take place not only in traditional forms, but also using its most common organizational and economic models - subcontracting, franchising, leasing and venture business. The use of such a range of organizational and economic models of cooperation will help meet the interests of each of its participants and strengthen the economy of the region. Keywords: modern management, information and security approaches, innovative cluster group, COVID-19, sustainability, decentralization, European integration.