The article studies the theoretical and methodological foundations of the functioning of cryptocurrency as an innovative financial instrument in the system of economic potential of an enterprise. The essence of cryptocurrency is revealed from the point of view of its role in the formation of financial resources, ensuring solvency and increasing the competitiveness of business entities. The author's definition of the term "cryptocurrency" is provided. The criteria for classifying cryptocurrencies have been expanded. The expediency of using cryptocurrencies in entrepreneurial activities in the context of digitalization of the economy has been substantiated. The analysis of the advantages and risks of integrating cryptocurrencies into the financial strategy of the enterprise is carried out, as well as methodological approaches to assessing their impact on the overall economic potential are proposed. The authors offer practical recommendations for effective management of cryptocurrency assets, taking into account the current regulatory framework and technological changes.
The article is devoted to the development of a methodological approach to managing the scientific component of the budget process at the municipal level under the conditions of power decentralization in Ukraine. Given the increasing complexity of the socio-economic environment, the need for balanced local finances, and the focus on sustainable development of territorial communities, the author emphasizes the significance of scientific and analytical support in the budget process. The aim of the study is to develop a methodological approach to managing the scientific component of the municipal budget process, taking into account modern challenges, institutional specifics, and international experience. The research methods include systems analysis, structural-functional approach, institutional-comparative analysis, as well as logical and formalized modeling methods in the field of scientific support of the budget process. The article explores the theoretical foundations of scientific support for the budget process, analyzes the current state, and identifies key issues in managing the scientific component within Ukrainian municipalities. It reveals the essence and functions of the scientific component in budget management – from research planning and analytical database formation to the evaluation of decision effectiveness and forecasting the influence of external factors. The key principles of effective management are defined: scientific validity, interdisciplinarity, adaptability, openness, and institutional interaction. The opportunities for integrating scientific institutions, independent analytical centers, and digital tools into municipal budget management are systematized. Results. A conceptual model for managing the scientific component is proposed, encompassing the following stages: strategic planning of scientific and analytical support, coordination of stakeholder actions, organization of institutional cooperation, provision of resource support, and implementation of control and evaluation mechanisms. It is argued that systematic management of the scientific component improves the quality of managerial decisions, ensures transparency in the budget process, and strengthens citizens’ trust in local self-government authorities. The research findings can be applied in the development of municipal development strategies, the design of institutional cooperation mechanisms with scientific institutions, and the digitalization of public finance management at the local level.
Construction industrialization has become an important topic recently but is not in smooth progress in practice, one of the reasons being lack of the effective supply chain management (SCM). As a distributed ledger technology, blockchain technology (BT) can play significant roles in SCM. Nevertheless, the previous literature suggests a slow rate of BT adoption in the construction supply chain (CSC). This finding may stem from a lack of comprehensive understanding among practitioners regarding the deficiencies in the current CSC and the benefits that BT brings to the CSC. To address this challenge, this study presents a fuzzy cognitive map (FCM)-enabled approach to identify the enablers of BT adoption in CSC; analyze the causal relationships between them and their influence on CSC performance. Finally, a sensitivity analysis was conducted to explore the most effective enablers for BT adoption, and a dynamic analysis was performed to analyze the manageability of these enablers. The findings of this study provide valuable insights for the practitioners to design the strategies for BT adoption in CSCs. By exploring and leveraging these enablers, decision makers can facilitate the adoption of BT in CSCs, leading to more efficient and effective SCM in construction industrialization practices.
This study explored the role of corporate governance in enabling effective digital transformation within organizations, focusing on how boards of directors navigate challenges, leverage opportunities, and incorporate strategic oversight and risk management frameworks. The central inquiry sought to identify the trends, strategies, and governance practices that empower boards to oversee digital transformation successfully while aligning with broader organizational objectives and stakeholder expectations. An in-depth review of literature published internationally between 2020 and 2025 on this subject was conducted to coincide with the period since COVID-19. Throughout the study, a systematic exploration of the interplay between governance frameworks, emerging technologies, and evolving regulatory landscapes shed light on how boards can foster resilience, adaptability, and innovation in a rapidly changing business environment. The analysis highlighted the pivotal contributions of board characteristics such as independence, diversity, and ethical orientation in driving governance outcomes that align with digital transformation objectives. Independent directors proved vital in fostering sustainability and reducing groupthink, bringing expertise and accountability that strengthened decision-making processes. The increased diversity on boards, particularly in terms of gender and professional backgrounds, enhanced creativity and adaptability in addressing the complexities of digital transformation. Furthermore, ethical considerations emerged as a cornerstone of effective governance, particularly in mitigating risks associated with technologies like artificial intelligence and distributed ledger systems. These findings underscore that corporate governance operates not only as a regulatory mechanism but also as a strategic enabler of innovation and stakeholder trust in the context of digital transformation. This paper offers valuable implications for policymakers, corporate leaders, researchers, and stakeholders.
Siti Hernita Oktavia, Indira Shofia, Abdul Rauf, Abdul Halik
The objective of this research is to examine and analyze the performance comparison among Bitcoin cryptocurrency, stocks, and gold. This study employs a quantitative research approach utilizing a comparative method. The population consists of the monthly closing prices of Bitcoin, LQ45 stocks, and gold from 2018 to 2023, totaling 180 data points. A saturated sampling technique is applied in this research. The study utilizes time series data, relying on secondary data sources. Data analysis is conducted using Microsoft Excel, applying relevant formulas for each variable. The data is further processed using SPSS, specifically employing the ANOVA test. The findings reveal significant differences in returns and risks among Bitcoin, stocks, and gold. Additionally, the performance metrics—measured by the Sharpe, Treynor, and Jensen methods—also indicate notable differences among these three asset classes.
Against the backdrop of increasingly severe global climate change and environmental challenges, green finance, as a bridge connecting capital and sustainable development, is facing problems such as information asymmetry, transaction frictions and regulatory challenges. This study systematically explores the innovative applications of blockchain technology in the field of green finance and its economic effects. Through literature research and case analysis, we found that blockchain technology, with its characteristics of decentralization, immutability and smart contracts, has shown significant advantages in improving transparency, reducing transaction costs and alleviating the phenomenon of "greenwashing". Research shows that the application of blockchain in areas such as green bonds, carbon trading, renewable energy certification and green supply chain finance has produced economic benefits such as reduced financing costs, improved market efficiency and enhanced information transparency. This paper constructs a comprehensive assessment framework to provide guidance for policymakers and market participants to promote the innovative development of green finance.
NFTs and Blockchain Explain Innovation in Digital Ownership: Blockchain technology, paired with Non-Fungible Tokens is revolutionizing digital ownership, enabling decentralized, secure and verifiable transactions of assets. Traditional systems do not promise such transparency and immutability at all, which is why blockchain makes a trusted system that is equally applicable in many other industries such as finance, art, real estate, IP management etc. Blockchain technology underpins NFTs, which confirm ownership for digital assets and mitigate duplication, allowing creators to profit directly. It is a transformative paradigm that improves security, minimizes third-party involvement, and creates a new economic model in which users have more ownership of digital assets. With the use gradually becoming mainstream, blockchain and NFTs are expected to transform ownership, trade and investment creating a decentralized digital economy that benefiting both creators and consumers.
Business and Economic Development
Legal, Health, Environmental and COVID-19 Challenges
The topic of financial resilience of territorial communities has gained significant relevance in the context of full-scale war, which has substantially affected public finances in Ukraine.The decentralization process granted new financial autonomy and decision-making possibilities to local powers.However, ongoing military actions have led to decreasing of financial flows, destruction of infrastructure and population displacement, which negatively influenced the financial sustainability of communities.This article aims to explore theoretical approaches to defining financial resilience of territorial communities, analyzing its key determinants and formulating an author's approach.The research identifies that financial resilience is a multidimensional concept incorporating self-financing capacity, effective resource management, debt burden control and adaptability to economic shocks.Additionally, resilience extends beyond financial stability to include proactive risk mitigation strategies that enhance the long-term sustainability of local powers.The morphological and functional analysis of the term "financial resilience" reveals its critical role in ensuring balanced economic and social development, particularly in crisis conditions.Key determinants influencing financial resilience include resource potential, financial inclusion, financial literacy, social capital, and strategic budget planning.Empirical observations suggest that communities with diversified income sources, sound financial planning, and efficient financial control mechanisms demonstrate higher levels of resilience.Moreover, interactions with external support systems, including governmental assistance and international funding, play an important role in maintaining financial stability.The study emphasizes that financial resilience is not solely dependent on internal financial management but also on broader socio-economic factors and governance efficiency.In the context of post-war recovery, financial resilience will serve as a foundation for rebuilding and strengthening local economies.Future 4(14) 2025 271 research should focus on refining financial resilience assessment models and developing targeted policies to support communities in navigating economic uncertainties and structural changes.
Abstract. This study investigates the transformative potential of blockchain technology in optimizing business processes, digital marketing, and achieving sustainable development goals within the context of global digitalization and increasing consumer demands for transparency. The research employs dialectical methods of cognition, systematic approaches, and analysis-synthesis methodologies to examine blockchain's key advantages including transparency, data security, and automation through smart contracts. The investigation reveals that blockchain technology addresses critical challenges in digital marketing, particularly advertising fraud, which cost the industry approximately $84-140 billion globally in 2024. Invalid traffic (IVT) reached 23% of all mobile advertising impressions, with Ukraine experiencing fraud rates as high as 50.31%. The study demonstrates how blockchain's immutable ledger system can verify ad views and clicks, eliminating fraudulent activities while ensuring transparent budget allocation. Key findings highlight blockchain's capacity to revolutionize supply chain management through real-time product tracking from origin to consumer. Case studies include Walmart's product tracking system, H&M's collaboration with VeChain platform for clothing authenticity verification, and De Beers' diamond supply chain transparency initiative. The research identifies IBM Food Trust as exemplifying blockchain's role in reducing food waste and ensuring safety through transparent record-keeping. The study proposes strategic frameworks for integrating blockchain into business and marketing practices aligned with sustainable development principles. Smart contracts enable automated insurance payouts, peer-to-peer energy trading, and decentralized loyalty programs through tokenization. Environmental applications include carbon credit markets, green financing transparency, and anti-greenwashing certification systems. Despite significant advantages including decentralization, transparency, security, and intermediary elimination, implementation challenges persist: energy consumption, scalability limitations, technical complexity, and regulatory uncertainty. The research concludes that blockchain fosters trust, optimizes resource management, and supports ethical practices, enabling enterprises to achieve long-term competitiveness while contributing to sustainable development objectives.
Dirin Mchirgui, Mohammed Ali Sulyman Digheem, Fawzi Salem Adwela
This paper explores the interconnectedness and spillover relationships among Bitcoin, gold, gold-backed cryptocurrencies, and energy commodities during the COVID-19 pandemic and the Russia-Ukraine military conflict. Using a quantile connectedness approach, we reveal diverse influence dynamics among digital assets, with Gold, DGX, and PAXG emerging as key contributors to the network’s total connectedness. Notably, the cTCI/TCI ratio underscores substantial direct linkages, emphasizing significant interconnections among digital assets. DGX acts as a principal information transmitter, while gas plays a crucial role as a primary receiver, suggesting its potential as a diversifier. The time-quantile analysis highlights heightened connectedness during significant events, providing valuable insights for investors and risk managers. Results underscore varying roles of assets, with PAXG persistently acting as a net transmitter and Bitcoin and Gold displaying nuanced patterns. Interestingly, Gold demonstrated certain safe haven characteristics only during the Russia-Ukraine war. The time-frequency analysis at the median quantile emphasizes the dominance of short-term dynamics, prompting the need for adaptive risk management strategies. Overall, this study facilitates a nuanced understanding of market dynamics, offering practical insights for different periods.
In the light of frequent requests from the business sector, blockchain technology and green innovations are integrated into sustainable business models to improve transparency, efficiency, and environment responsibility. This paper presents GreenChain, a blockchain based decentralized framework which helps businesses in attaining sustainability by carbon credit tokenization, peer to peer (P2P) renewable energy trading, and smart green impact analytics powered by artificial intelligence. According to the proposed system, sustainable transactions are accomplished through smart contracts, which guarantee a safe hand and trust reduction of mediators and eliminate the risks of green washing. Incorporating Internet of Things (IoT) based energy monitoring of actual time carbon emissions to be able to earn and trade blockchain verified carbon credits, the framework is integrated. Additionally, it allows tokenized investments to fund green projects in a decentralized finance (DeFi) mechanism. The feasibility of low cost, high security transactions is also discussed in terms of analysis of performance, which render it into a viable alternative of conventional means of sustainability tracking mechanism. This paper discusses its research on the use of blockchain towards carbon footprint, energy efficiency and circular economy. The results suggest that both the GreenChain model strengthens accountability and facilitates ESG compliance, which avers the industry’s transition towards a sustainable future. Eutopia will concentrate on making adoption of the ADU widely scalable, complying to regulatory standards, and introducing it in smart cities and industrial ecosystems.
Introduction: the study covers features of investigation activities of internal affairs in countering bribery committed with the use of digital financial and cryptocurrency assets. Materials and Methods: the doctrinal law provisions on the investigation activities of the internal affairs in the light of the fight against corruption became the study materials. Regulations on countering bribery committed with digital financial and cryptocurrency assets were the basic study sources. The author used universal (analysis, deduction, and induction) and special (structure logic, dialectical, and legal) methods of cognition. Literature review: the author analyzed investigation and criminology scientific works, as well as considered studies on informational and telecommunication technologies in countering bribery. Thus, he came to the conclusion that H.A. Asatryan, A.P. Dmitrienko, M.G. Zhigas, V.S. Ishigeev, A.V. Kulikov, A.I. Ovchinnikov, A.L. Repetskaya and others contributed substantially to the study. Results: the following conclusions were drawn from the research: - The most challenging issues concerning the detection and documentation of bribery committed using digital financial and cryptocurrency assets were analysed by the author. - The most common ways to identify crypto wallets and their users, which can be used by internal affairs bodies, were considered. - The scheme of criminal transactions related to bribery was presented. - The regularity in the use of information and telecommunication technologies by internal affairs bodies in combating bribery committed using digital financial and cryptocurrency assets was defined. Discussion and Conclusions: there are signs of circulation of digital financial and cryptocurrency assets in bribery. The author presents his own variant of the inquiry for crypto platform to receive necessary information for the investigation; measures to improve investigation efficiency in internal affairs bodies when combating bribery committed with digital financial and cryptocurrency assets.
The paper explores the complex issue of accounting and taxation related to digital means of payment, with a particular focus on cryptocurrency. The growing importance of the topic is evident from two main factors: firstly, the rapid increase in cryptocurrency trading volumes worldwide, and secondly, the insufficient technical capabilities of tax authorities to effectively monitor and regulate such transactions. Despite the growing global interest in cryptocurrencies, the taxation and accounting of these digital assets remain a significant challenge, primarily due to the absence of universally recognized and established approaches to their regulation. The study highlights a critical gap in understanding the nature of cryptocurrency. It is unclear whether cryptocurrency should be considered a currency, a commodity, or a form of payment or exchange. This ambiguity contributes to the challenges faced in both legal enforcement and taxation. Without a clear legal definition or status for cryptocurrencies, it becomes extremely difficult to implement consistent taxation policies that can be applied universally. The paper emphasizes that the current regulatory framework for cryptocurrency transactions is fragmented. While a range of legal and regulatory acts exists, they fail to provide a cohesive, standardized approach to governing these digital currencies. In addition to addressing these theoretical issues, the paper systematically analyzes the experiences of various countries in the field of cryptocurrency tax regulation. This comparison reveals certain global trends in the taxation of digital currencies, showcasing both successful models and ongoing challenges. The study also delves into the specific characteristics of cryptocurrency taxation in Ukraine, drawing attention to the unique challenges faced by the country in aligning its tax policies with global standards. The paper identifies several key problems in the taxation of cryptocurrency transactions, such as the lack of comprehensive tax guidelines, the difficulty of tracking transactions, and the challenges in categorizing cryptocurrency for tax purposes. It also discusses the potential future developments in cryptocurrency taxation, both in Ukraine and internationally. The study assesses the prospects of creating a more effective and unified tax system for digital currencies, emphasizing the importance of international collaboration and the need for updated legal frameworks to address the growing role of cryptocurrencies in the global economy.
ВНЗ "Університет економіки та права "КРОК", Сергій Андрійчук, Володимир Кузьмінський, ВНЗ "Університет економіки та права "КРОК"
This article examines the macroeconomic aspects of the impact of cryptocurrencies on the money market, focusing on their relationship with traditional financial systems, monetary policy, and financial stability. The relevance of the study is due to the growing use of cryptocurrencies as a financial instrument and their integration into the global economy. In the last decade, digital assets have become widespread not only as a means of payment, but also as an element of an investment portfolio, which requires an in-depth analysis of their impact on economic processes. The purpose of the study is to assess the impact of cryptocurrencies on the money supply, monetary regulation mechanisms, and financial stability of states. The research methodology is based on the use of macroeconomic analysis, statistical methods, and a comparative analysis of different approaches to regulating the cryptocurrency market in different countries. Empirical data were used to identify the main trends in the interaction of digital assets with traditional financial systems and potential threats to the monetary policy of central banks. The results of the study indicate that cryptocurrencies can act as a factor that changes the traditional mechanisms of money market regulation. The decentralization of cryptocurrencies and their independence from state control pose new challenges to regulators. On the one hand, crypto-assets can promote financial inclusion and provide alternative methods of financing, on the other hand, they increase the level of volatility and create risks of financial instability. The article examines the role of stablecoins in international financial flows and their impact on the stability of the money supply. It is noted that stablecoins can act as an alternative to fiat currencies in the digital economy, which raises questions about their regulation and place in the monetary policy of states. Potential scenarios for the integration of cryptocurrencies into the modern financial system are investigated, in particular, through the development of central bank digital currencies (CBDCs), which can become an answer to the challenges posed to financial systems by the rapid development of blockchain technologies. Prospects for further research in this area include analyzing the effectiveness of regulatory approaches to controlling cryptocurrencies, studying the correlation between the Bitcoin exchange rate and macroeconomic indicators, and developing models for predicting the dynamics of the digital asset market. An extended study of the interaction of cryptocurrencies with the traditional banking system and their impact on international financial stability remains an important area of scientific research in the future.
This article presents a comprehensive analysis of contemporary cyber threats to the financial sector, emphasizing their impact on the stability of financial institutions and payment systems. The study addresses the primary vectors of cyberattacks—phishing, DDoS, malware, targeted APT attacks, and insider threats. Drawing on the experiences of Ukrainian and international financial institutions, the paper identifies key principles for constructing cybersecurity systems, encompassing multi-layered protection, vulnerability management, proper authentication, and incident response planning. Special attention is devoted to artificial intelligence and machine learning as instruments for enhancing cyber resilience. The article also examines the potential for implementing blockchain and decentralized finance (DeFi) within the global financial landscape and the associated information security challenges. The significance of integrated cyber risk management within financial institutions' broader operational risk management framework is underscored. Finally, practical recommendations are offered on optimizing security frameworks, adopting international standards, and bolstering intergovernmental coordination to ensure the financial sector’s long-term resilience in the face of digital transformation.
This article studies modern approaches to organizational management in the digitalization era. Its purpose is to analyse, systematize, and generalize these approaches. The research examines the transformation of organizational management under the influence of economic digitalization in the 21st century. An analysis of the main challenges traditional management models face amid the rapid development of digital technologies, including machine learning, artificial intelligence, big data, and the Internet of Things. The study substantiates the feasibility of shifting from hierarchical to adaptive management models that ensure flexibility, innovativeness, and rapid organizational adaptation to changes in the external environment. The concept of adaptive management as an open system that continuously adjusts its internal processes in response to market demands and technological changes is analyzed. The key factors for the successful functioning of adaptive management are identified: decentralization, delegation of authority, implementation of autonomous workgroups, and the active use of digital technologies for monitoring and analytics. The exploration of data-driven management features revealed its role as a strategic resource for decision-making, enhancing organizational flexibility, and creating added value. The importance of developing a data-driven organizational culture and implementing integrated information systems to establish evidence-based management practices is emphasized. The study also substantiates the role of digital-era leaders in shaping a vision of the digital future of organizations, promoting innovation, fostering a culture of continuous learning, and enhancing companies' digital maturity. It is noted that effective leadership in the digital era is impossible without creating an atmosphere of trust, readiness for change, and the development of employees' digital competencies. The article also analyses flexible management methodologies that have emerged in response to the challenges of the digital economy and have become essential tools for organizational adaptation to rapid environmental changes. Among the most widespread approaches, Agile, Scrum, and Lean are highlighted, which focus on iteration, flexible planning, constant interaction with stakeholders, and rapid response to new requirements. The research concludes that adaptive management, data-driven approaches, digital transformation leadership, and flexible methodologies are the key success factors for organizations in the digital economy. At the same time, modern management in the digital age requires a comprehensive approach that combines technological innovations, new leadership styles, a shift to open organizational models, and knowledge management.
The article examines the current state and peculiarities of cryptocurrencies regulation in Ukrainian banking system. The legal nature of cryptocurrencies is analyzed through the prism of international and national approaches to their definition, in particular the positions of the European Central Bank and the FATF. The provisions of the Law of Ukraine “On Virtual Assets” and the reasons for its substandard functioning in modern conditions are considered. The position of the National Bank of Ukraine regarding cryptocurrencies, which is characterized by a conservative approach and an emphasis on the hryvnia as the only legal means of payment in Ukraine, has been studied in detail. The NBU's initiatives regarding the introduction of the e-hryvnia as a national digital currency have been analyzed. The main advantages of integrating cryptocurrencies into the banking system are also identified, in particular, the possibility of reducing transaction fees, the potential of attracting foreign investment and the need to enhance consumer protection mechanisms in financial services. The key challenges associated with the implementation of cryptocurrencies have been outlined, including legal uncertainty, high volatility of crypto assets, cybersecurity threats, and the need to improve mechanisms for protecting the rights of financial services consumers. The international experience of cryptocurrency regulation was studied, and three main models of regulation were identified: liberal (Japan, Switzerland), conservative (EU, USA) and restrictive (China, India). Comprehensive recommendations for improving the legal framework of cryptocurrency regulation in Ukraine are proposed, including the necessity of adopting a fundamental law, establishing an effective supervisory system, implementing licensing mechanisms for cryptocurrency exchanges, and developing clear taxation rules. Particular attention is given to the potential of blockchain technology in the banking sector as a tool for increasing transparency and reducing operational costs. The article emphasizes the importance of balancing innovation stimulation with ensuring financial stability, as well as the need for harmonizing Ukrainian legislation with international standards for digital asset regulation. It is concluded that effective cryptocurrency adoption requires not only legal regulation but also the development of digital infrastructure, improvement of financial literacy among the population, and strengthening mechanisms for combating financial crimes. Keywords: cryptocurrency, virtual assets, banking system, e-hryvnia, National Bank of Ukraine, digital currencies.
The article examines the definition of «cryptocurrency,» its legal status, and prospects for regulation in Ukraine. The authors analyze contemporary approaches to understanding cryptocurrency as a digital asset, considering it either as a new form of money or as an object of civil rights. Particular attention is paid to the provisions of the Law of Ukraine «On Virtual Assets,» adopted on February 17, 2022, and its significance in creating the legal foundation for cryptocurrency market regulation. However, it is emphasized that this law has not yet come into force due to the absence of corresponding amendments to tax legislation, complicating the legalization of cryptocurrency transactions. The distinction between «virtual assets» and «cryptocurrencies» is discussed, highlighting key limitations of existing legislation, particularly the prohibition on using virtual assets as a payment method in Ukraine. The article outlines issues such as the lack of a transparent regulatory environment and a taxation system, which hinder the development of the cryptocurrency market, reduce its investment appeal, and create risks for market participants. The article also analyzes international cryptocurrency regulation experiences, particularly in the United States, Canada, Japan, and the European Union. Special attention is devoted to the European regulation Markets in Crypto Assets (MiCA), which could serve as a foundation for developing a unified regulatory framework in Ukraine. The authors stress the importance of harmonizing Ukrainian legislation with European standards within the framework of European integration. The potential benefits of cryptocurrency legalization are highlighted, including attracting foreign investments, developing financial technologies, reducing the shadow economy, strengthening consumer protection, and creating new markets. Specific recommendations are provided to improve legislation, such as implementing transparent regulatory mechanisms, taxation, investor protection, and ensuring cybersecurity. This article is a significant contribution to the study of the prospects for the development of the cryptocurrency market in Ukraine, outlining the challenges and opportunities for integrating Ukraine’s financial system into the international space through the adoption of MiCA standards.
This article provides a comprehensive analysis of the key risks associated with the operation of a crypto platform in the context of the transition to Web3 technology. The authors explore the activities of leading blockchain platforms such as Ethereum, Solana, Binance Smart Chain, Polkadot, Avalanche, Cosmos and Polygon, identifying the main types of risks that apply to the implementation of Web3 technology. The paper identifies threats associated with cryptocurrency volatility, regulatory uncertainty, cybersecurity, specific risks of decentralized finance (DeFi) and non-fungible tokens (NFTs), as well as scalability, accessibility and environmental issues. The authors analyzed the activities of the crypto platform and found that each platform has a unique structure and asset structure, which affects the nature of the risks. For example, Ethereum dominates the DeFi and NFT sectors, Solana is distinguished by its speed and low fees, Binance Smart Chain focuses on DeFi, and Polkadot and Cosmos are developing cross-chain technologies for interoperability. The main risks analyzed in the article include: Volatility of cryptocurrencies, which can increase financial instability; Cybersecurity, including hacking attacks and vulnerabilities of smart contracts; Regulatory uncertainty, which can hinder innovation and create legal conflicts; DeFi risks, such as errors in smart contracts, liquidation problems and systemic failures; NFT risks, in particular high market speculation and fraud risks; Scalability, including technical limitations and high fees; Complexity of use, which can limit the widespread adoption of Web3; Accessibility and inclusiveness, including unequal access to technologies; Energy consumption and environmental friendliness, which can affect the environment. To minimize these risks, the authors proposed a risk management strategy based on semi-fundamental principles: comprehensiveness, preventiveness, consistency, decentralization, transparency, security and interoperability. This strategy includes the introduction of modern analytical methods such as scenario analysis, machine learning, Value at Risk (VaR), Conditional VaR (CVaR), Monte Carlo models, multi-level security systems, bug bounty programs, transaction encryption, decentralized oracles, risk hedging using derivatives and RegTech solutions for regulatory compliance. For the effective implementation of the proposed strategy, a risk management roadmap was developed, which details the stages of risk identification, assessment, management and monitoring. This map includes specific tools for each stage, such as scenario analysis, AI analytics, blockchain scanners, VaR and CVaR models, attack models, stress testing, blockchain analytics, encryption, futures, options, RegTech, KPIs and behavioral models. The implementation of the proposed strategy will create a favorable environment for the reliable and sustainable development of Web3 technologies and the cryptocurrency market. Further research should be aimed at detailing platform-specific strategies and adapting them to the changing landscape of Web3.
Nha Minh Nguyen, Malik Abu Afifa, Vo Thi Truc Dao, Duong Van Bui · 5 authors
Purpose This study aims to explore key questions within the context of Asian countries: How do artificial intelligence (AI) and blockchain adoption in accounting influence enterprise risk management and environmental, social and governance (ESG) performance? What role does enterprise risk management have as a mediator in this relationship? In addition, how does environmental uncertainty shape the interplay between AI and blockchain adoption in accounting, enterprise risk management and ESG performance? Design/methodology/approach The authors collected data from Thomson Reuters Eikon Datastream, initially targeting the 20 Asian countries with the highest gross domestic product (GDP) per capita. Using stringent selection criteria, the research sample included 22,212 firms from these countries: Bahrain, China, Hong Kong, Indonesia, Israel, Japan, Jordan, Kazakhstan, South Korea, Kuwait, Lebanon, Malaysia, Oman, Qatar, Saudi Arabia, Singapore, Sri Lanka, Thailand, the United Arab Emirates and Vietnam. After a rigorous screening process, the final sample comprised 1,742 firms, representing 17,420 firm-year observations over the 2014–2023 period. This paper applied maximum likelihood structural equation modeling to analyze the data. Findings The findings reveal that both AI and blockchain adoption in accounting, along with enterprise risk management, positively impact ESG performance in the Asian context. Enterprise risk management serves as a mediating factor between AI and blockchain adoption in accounting and ESG performance. In addition, environmental uncertainty significantly moderates the relationships between AI and blockchain adoption in accounting and enterprise risk management, as well as between enterprise risk management and ESG performance. Practical implications This study uncovers the interplay between internal factors – such as AI and blockchain adoption in accounting and enterprise risk management – and external factors, notably environmental uncertainty, in fostering sustainable value for Asian firms. Internal factors enable firms to integrate ESG considerations into their operations, facilitating risk mitigation and enhancing ESG performance. Meanwhile, heightened environmental uncertainty drives the adoption of sustainable practices. Consequently, Asian Governments should prioritize the development of regions characterized by high environmental uncertainty to advance national sustainable development goals and encourage responsible business practices. Originality/value This study contributes to the existing literature by uncovering the combined effects of internal and external factors on ESG performance, offering empirical evidence from Asian countries with high GDP per capita. Specifically, it underscores the efficacy of AI and blockchain adoption in accounting and enterprise risk management, as well as the moderating role of environmental uncertainty, within the Asian context.
Nianko L.Yu., Dovbush A.V. DEVELOPMENT OF BANKING SERVICES IN THE CONDITIONS OF DIGITALIZATION: CHALLENGES, TRENDS AND PROSPECTS Purpose. The aim of the study is to conduct a comprehensive analysis of the transformation processes of banking services in the context of digitalization, in particular to identify key trends and outline the prospects for further development of the banking sector based on the implementation of digital technologies and FinTech solutions. Methodology of research. The methodological basis of the study is the dialectical method of scientific knowledge and a systematic approach. In the course of the study, a set of scientific methods was used to analyse the development of the banking system and its digitalization, in particular: analysis and synthesis, analytical – when processing literature sources; statistical analysis – to assess the dynamics of the banking system's development and its digitalization, evaluate global trends, and identify key areas for digitalization implementation. The use of trend analysis made it possible to identify the main factors influencing the development of the banking system and its digitalization. The graphical method was used to visualize statistical data and trends, which provides a more visual representation of the dynamics of the banking system and simplifies the interpretation of the obtained results. Findings. The issues of digitalization of the banking system are studied. The level of penetration of online banking, the dynamics of launching new banks in the world, the number of digital banks in the world, and the number of clients of the world's leading digital banks are determined and estimated. The list of promising and newest financial technologies in the banking sector is specified. Originality. The study proves that the prospects for the introduction of such digital financial technologies as artificial intelligence (AI), open banking, central bank digital currencies (CBDCs), biometric identification services, and green banking are directly related not only to their technological convenience but also to the level of government support and promotion of financial inclusion. This, unlike existing approaches, makes it possible to comprehensively assess not only the innovative potential of technologies but also their systemic integration into the banking model. It is established that DeFi (decentralized finance), despite the limited regulatory environment and high risk, can be further developed through gradual integration with traditional banking instruments, in particular through models of sharing APIs and smart contracts within hybrid financial systems. The study also improves the classification of the main risks that accompany the implementation of FinTech solutions in the banking sector by identifying strategic, technical, regulatory, organizational, and infrastructure threats. This allows for a more effective risk management model for the digital transformation of the bank. Practical value. The substantiated results of the study can be used to assess the trends in the implementation of FinTech solutions in the banking sector, to understand the role of FinTech in the strategic management of the bank, which allows considering digital innovations not only as tools for improving efficiency, but also as factors in the formation of long-term competitiveness. The study also improved the classification of the main risks accompanying the implementation of FinTech solutions in the banking sector by identifying strategic, technical, regulatory, organizational, and This allows for a more effective risk management model for the digital transformation of the bank. Key words: bank, banking services, digitalization, online banking, blockchain, Open Banking, digital transformation, FinTech.
In the context of escalating climate change and mounting environmental challenges, green finance has emerged as a crucial mechanism for fostering sustainable development. This paper presents an experimental analysis that illustrates how the integration of blockchain technology into financial technology (fintech) strategies can significantly enhance the efficacy of green investments. Our proposed framework facilitates the optimization of these strategies by improving transparency and fund traceability in environmentally focused projects. Through rigorous testing and data-driven insights, we demonstrate the potential of blockchain to streamline financing processes, mitigate risks associated with fraudulent practices, and promote accountability among stakeholders. By establishing a synergistic relationship between fintech and ecological responsibility, this research provides a novel approach that contributes to both academic discourse and practical applications in green finance. The proposed approach showcases experimental originality by integrating blockchain technology with green finance, setting a precedent for future research in this interdisciplinary field. Our findings reveal that blockchain can significantly enhance the efficiency of financing processes, reducing transactional delays and fostering transparency that mitigates risks related to fraud. Moreover, this study highlights the potential of this synergistic model to cultivate a robust framework for accountability among stakeholders, ultimately guiding investment toward environmentally sustainable initiatives and bolstering the integrity of green financial practices.
This paper provides a comprehensive analysis of cryptocurrency as a financial instrument, examining its underlying mechanisms, market structure, and risk characteristics. The study begins with an overview of cryptocurrency fundamentals, including blockchain technology and the evolution of the cryptocurrency market. Through quantitative analysis of daily returns for six cryptocurrencies and six traditional assets between January 2018 and December 2021, the research demonstrates cryptocurrency's distinctive risk-return profile. Principal Component Analysis reveals three major risk factors driving cryptocurrency returns, while clustering analysis identifies meaningful groupings among cryptocurrencies. The findings indicate that cryptocurrencies exhibit significantly higher volatility and tail risk compared to traditional assets but provide substantial diversification benefits when incorporated into conventional portfolios. Tangency portfolio analysis shows that adding cryptocurrencies to traditional assets substantially improves risk-adjusted returns, with the combined portfolio achieving a Sharpe ratio of 2.72, compared to 0.39 for traditional assets alone. The study further examines regulatory challenges, tax implications, and emerging frameworks, particularly within the European Union. This research contributes to understanding cryptocurrency's role in modern investment portfolios while highlighting the unique risks and regulatory considerations that accompany this emerging asset class.
Cryptocurrencies are rapidly developing into the financial systems all over the world and, therefore, can be regarded as alarming authorities and financial supervisory agencies. This paper focuses on the complex relationship between the increasing use of cryptocurrencies and the fluctuations of the world economy. It explores the industry's fundamentally low relative volatile nature that includes cryptocurrencies, risks of hacking attacks, frauds and money laundering that disrupt classical economical system frameworks. The emphasis is made on the regulatory activity in various areas, evaluating the efficiency of these measures in minimizing the identified risks. Thus, based on the analysis of the regulatory frameworks of the countries, which have different economic conditions and the level of using cryptocurrencies, those should be defined, which are successful and which difficulties may be encountered at the legislative level. Therefore, the results indicated that while some measures of regulations, which have been implemented in order to increase both market transparency and investors' protection, proved to be effective, others have been consistently failing to adapt to the fast-growing phenomenon of digital currencies. At the end of the paper, the author presents a set of proposals concerning a comprehensive international regulation that should take into account the peculiarities of the examined phenomenon while providing a proper balance between creation and constraint. This paper adds to literature on financial stability and presents findings regarding the strategies that need to be adopted to create sound policies to tackle the challenges of the cryptocurrency market.