The rapid development of FinTech is transforming the modern economic system. Today, there are many areas of FinTech, of which cryptocurrencies deserve special attention. They became part of payment systems in a fairly short period of time, gaining wide popularity around the world. Despite difficulties with the legislative sphere, cryptocurrency is gaining leading positions in the global financial market. But not all countries have recognized it factually and legally, there are many obstacles to the legalization of cryptocurrency. The use of cryptocurrencies for criminal purposes as barter or payment for a service is quite common. It should be noted that the use of cryptocurrencies in personal finance is accompanied by a decrease in financial and investment security and an increase not only in profitability, but also in the risks of using the owner's investment portfolio. Disadvantages of the use of cryptocurrency mostly include: prohibition of the use of cryptocurrency by state institutions; after losing the password from the electronic wallet, the cryptocurrency owner can lose all virtual savings; the more complex the cryptocurrency algorithm, the more difficult it is to mine it at home; insecurity from cyber attacks; cryptocurrencies are not backed by the Deposit Guarantee Fund. The use of cryptocurrencies at the legislative level is just being formed in Ukraine and has a number of contradictions. The article is devoted to the definition of the main trends in the world of crypto currencies. At today's stage, there are many types of cryptocurrencies. Among the largest cryptocurrencies by capitalization are: Bitcoin, Ethereum, Ethereum Classic, Dash, Ripple, Monero, Litecoin, NEM, Augur, MaidSafeCoin and others. Also, the types of cryptocurrencies depend on the features of their mining, there are Bitcoin, Altcoin (Litecoin (LTC); Ethereum (ETH); Ripple (XRP) and Tokens (Ethereum; Omni; NEO; TRON. Today, the legal framework is insufficiently developed in most foreign countries and in Ukraine in particular. Therefore, international practice shows the existence of various options for regulating cryptocurrencies in the world. And it depends on what the legislator of one or another state understands by cryptocurrency: commodity, intangible asset, money, property (property), equivalent of property value, object of money transfers, means of payment or financial instrument, method of payment or exchange. In this state of consideration of the problem, the process of legalization of activity using cryptocurrencies becomes somewhat more complicated, and as a result, controversial issues arise regarding the taxation of operations related to cryptocurrencies.
Purpose of the research The aim of the study is to assess the governance model and the degree of decentralization (by key indicators) in EU countries through the prism of the local finance system. Research methods: Both general and specific scientific methods were used in the research, such as analysis, synthesis, method of expert evaluations. The study used large data sets of local finances in European countries, the countries of the European Monetary Union and the Organization for Economic Cooperation and Development. The sources of information are: Eurostat – for comparative data on local finances of EU countries; OECD – for data on the financial and economic indicators of the member countries of the organization, the International Monetary Fund, the World Bank. The study is based on an analysis of data for 2013, 2015, 2017, 2019. This is a relatively representative and stable period characterized by the fact that it is between the global financial crisis of 2009 and the global health and socio-economic crisis of 2020. Results: There are opportunities to improve the revenue capacity of municipalities and optimize spending responsibilities (in terms of decentralization and social governance), in relation to the demographic structure of the population and its needs in the local finance system. Conclusion: Proposals are formulated to improve the system of local finances by improving the relationship between local revenues and expenditures on the one hand, and the services offered by local authorities, with those that the local community wants.
The article provides a comprehensive analysis of the development of Ukraine’s digital economy, emphasizing the critical role of the IT sector, innovative capitalization strategies, and the transformative impact of digital technologies on economic growth. The authors highlight the significant achievements of the Ukrainian IT sector. This growth is supported by a robust educational system producing skilled IT professionals and government initiatives such as the Ministry of Digital Transformation, the “Diia” project, which have revolutionized e-governance and digital public services. The article delves into innovative capitalization strategies, including the adoption of blockchain technologies, decentralized finance (DeFi), venture capital, and angel investments, which are reshaping investment landscapes and enabling rapid scaling of digital businesses. The authors also explore the role of international partnerships and foreign direct investments (FDI) in fostering Ukraine’s digital economy, particularly through collaborations with global tech giants and initiatives like the EU’s €50 billion Ukraine Facility program. Despite these advancements, the article identifies several challenges, including insufficient investment in digital infrastructure, brain drain, cybersecurity threats, and regulatory uncertainties. To address these issues, the authors propose a multifaceted approach, including enhancing digital literacy, modernizing educational institutions, and fostering a competitive innovation culture. The article concludes by emphasizing the importance of balancing innovation with risk mitigation to ensure sustainable growth in Ukraine’s digital economy. By leveraging its strengths in IT and digital services, Ukraine is well-positioned to become a leading digital hub in Eastern Europe, driving economic resilience and global competitiveness. Additionally, the article underscores the potential of emerging technologies like artificial intelligence (AI) and the Internet of Things (IoT) to further accelerate digital transformation. The authors call for increased collaboration between the public and private sectors to create a supportive ecosystem for startups and scale-ups, ensuring that Ukraine remains at the forefront of the global digital economy.
Over the past decade, digital assets have transformed from a niche technological experiment into a mainstream financial instrument, attracting institutional investors, governments, and retail traders. With the increasing adoption of blockchain technology, cryptocurrencies are reshaping traditional financial systems, offering new mechanisms for wealth creation, transaction efficiency, and decentralized financial services. This article explores the profit opportunities and risks associated with the cryptocurrency market, highlighting its rapid evolution and significant impact on the global financial landscape. A key focus of this study is the investment potential within the cryptocurrency sector. It examines various opportunities, including short-term gains driven by market volatility, long-term asset appreciation, passive income through staking, and innovative financial models within decentralized finance (DeFi). However, the cryptocurrency market is fraught with substantial risks alongside these profit opportunities. Extreme price fluctuations remain a defining characteristic, often leading to significant losses for uninformed investors. Regulatory uncertainty poses another challenge as governments worldwide struggle to develop clear frameworks, with potential legal restrictions impacting the market’s stability. Security vulnerabilities, including exchange hacks, smart contract exploits, and phishing attacks, add another layer of risk, making cybersecurity a crucial concern for market participants. Furthermore, the lack of consumer protection mechanisms means that investors may have little recourse in cases of fraud, theft, or technical failures. By analyzing these factors, this article provides a balanced perspective on the potential rewards and dangers of investing in digital assets. The study is supported by academic research, industry reports, and real-world market trends, offering valuable insights for investors, policymakers, and financial analysts. As cryptocurrencies evolve, understanding their opportunities and risks is essential for making informed financial decisions in this rapidly changing landscape.
The post-war recovery of Ukraine requires the implementation of innovative financial technologies that ensure transparency, efficiency, and sustainability of reconstruction processes. Modern instruments such as digital platforms, blockchain-based solutions, and fintech applications can facilitate the mobilization of domestic and international resources, improve accountability, and strengthen trust among stakeholders. These technologies enable the creation of decentralized funding mechanisms, enhance monitoring of financial flows, and support public–private partnerships. By integrating advanced financial innovations into recovery strategies, Ukraine can accelerate infrastructure rebuilding, stimulate economic growth, and attract long-term investment, thereby laying the foundation for resilient development.
Open access
Economic Issues in Ukraine
Environmental and Biological Research in Conflict Zones
The article examines international experience and national peculiarities of budget financing for targeted development programs under global crises of the 21st century, particularly the 2008–2009 financial crisis, the COVID-19 pandemic, and the 2022–2024 energy crisis. The research methodology is based on a comparative analysis of different countries’ responses to crisis phenomena, a structural-functional analysis of institutional mechanisms for managing budget expenditures, and the systematization of budget financing models. As a result of the study, four basic models of budget management were identified: the State control and strategic planning model, the decentralized planning with coordination model, the international coordination and assistance model, and the hybrid model, each of which possesses specific characteristics, advantages, and limitations depending on the country’s institutional context. A critical analysis identified significant limitations to the direct adoption of international practices in Ukraine, caused by the ongoing war, economic crisis, weak institutional capacity, the absence of traditions in program-targeted budgeting, high levels of corruption, and a shortage of qualified personnel. Based on the systematization of international experience, a conceptual model of a hybrid budget management system for Ukraine was developed, integrating adapted elements of all basic models and providing for long-term strategic planning over 5–10 years, three-year medium-term planning with scenario-based budgets, decentralized expenditure management, and mechanisms for public engagement and transparency. The proposed model is characterized by phased implementation over 1–10 years, with an expected increase in the efficiency of budget resource utilization, creating preconditions for balancing the short-term needs of crisis response with the long-term objectives of structural development of the economy. The practical significance of this research lies in the potential application of its findings by the State authorities of Ukraine in the development of strategic documents in the field of budget policy, the reform of public expenditure management systems, and the preparation of programs to secure international financial assistance for post-crisis recovery.
The aim of the article is to examine the role of municipal (communal) enterprises as key institutions for financing sustainable development in Ukrainian communities, analyze their functional capabilities, identify the main financial barriers, and propose approaches for assessing the investment attractiveness of communal enterprises in the context of implementing municipal sustainable development strategies. The focus is on the characteristics of communal enterprises as institutions capable not only of providing public services but also of serving as active executors of sustainable development strategies. It has been determined that communal enterprises possess the necessary legal, organizational, and technical prerequisites for implementing infrastructure initiatives in areas such as energy conservation, transportation, water supply, and waste disposal, which correspond to the Sustainable Development Goals (SDGs). The relevance of the research is determined by the increasing role of local self-government in the context of decentralization, the need to restore infrastructure due to military actions, the limitations of budget resources, and the growing interest in searching for innovative financing tools at the local level. At the same time, the results of the review of contemporary scientific literature indicate insufficient attention to communal enterprises as full-fledged participants in sustainable development processes – both in terms of attracting financial resources and in aspects of institutional capacity. The aim of the article is to substantiate the capability of communal enterprises to act as drivers of sustainable community development, to identify key barriers that limit their financial sustainability and investment attractiveness, and to formulate methodological approaches for a comprehensive assessment of the potential of communal enterprises in the context of attracting off-budget financing. In the process of the research, methods of content analysis of scientific publications, systematic-structural and comparative approaches to analyzing the financial-institutional role of communal enterprises (CE), as well as elements of ESG assessment were applied. Legislative, financial, and managerial factors that determine the operational efficiency of CEs were analyzed, as well as factors that reduce their investment attractiveness: unprofitable tariffs, low levels of transparency, lack of strategic financial planning, limited managerial capacity, weak tools for internal control and risk management. The outcome of the research was the formation of a conceptual approach to assessing the investment capacity of communal enterprises, which includes three main blocks: financial viability, operational efficiency, and compliance with environmental, social, and governance (ESG) criteria. The emphasis is placed on the need to implement transparent financial practices, improve tariff policy, create internal credit ratings for public utilities, and attract international technical assistance.
Serhiі Petrukha, Nina M. Petrukha, Bohdan O. Hudenko
The article provides an interdisciplinary theoretical analysis of the system of financial support for military volunteer formations of territorial communities (MVFTCs) in the context of classical and modern conceptions of financing the security and defense sector. It is noted that in the context of hybrid and asymmetric threats, volunteer structures play an important role in ensuring national resilience, and their financial support is of particular importance from the point of view of public policy, social justice, and public legitimacy. The basic models of security force financing – centralized, decentralized, and mixed – are considered, and the place of MVFTCs within the hybrid defense architecture is determined. The article systematizes the typology of possible models for financing the MVFTCs (State-based, volunteer, private, hybrid, self-financing) and analyzes their advantages and risks. Particular attention is paid to normative and value aspects: legitimacy, fairness, recognition of the subjectivity of volunteers, and the symbolic significance of material support. The interconnection between the internal motivation of participants in formations, social identity, and the influence of external incentives, in particular monetary rewards, is revealed. It is argued that excessive financial incentives without taking moral factors into account can lead to a crowding-out effect on motivation. The thesis is put forward that an effective model for ensuring the functioning of the MVFTCs should combine material, legal, and moral instruments to ensure both the combat readiness of the formations and support from both the State and civil society. The conclusion is made about the need for legislative regulation of the status of the MVFTCs and their integration into the general system of defense financing.
Nataliia Krykhivska, Олександра Ромашко, Надія Гребенюк, Mariia M. Markiv
The aim of the article is to study and analyze the current state of legislation regarding the regulation of cryptocurrency assets in Ukraine and, taking into account foreign experience, to identify recommendations for improving domestic legislative initiatives to ensure the transparency, security, and efficiency of the cryptocurrency market. To achieve this aim, comparative analysis, synthesis, and generalization of the obtained data were used. The main hypothesis is that efficient regulation of cryptocurrencies can improve the economic stability of the country. It is identified that cryptocurrencies require a comprehensive approach to regulation, considering global experience and the specifics of national legislation. The research methodology involved analyzing existing regulatory acts, studying cryptocurrency regulation practices in individual countries, and conducting a comparative analysis. The assessment of legal lacunae and the development of recommendations for improving Ukrainian legislation were the main objectives. An assessment of the current state of cryptocurrency regulation in Ukraine is carried out, a comparative analysis of international experience is presented, and proposals for improving legislation are formulated. Issues related to the taxation of cryptocurrencies are characterized, and major directions for the development of this sphere in Ukraine are allocated. The theoretical significance of this research lies in clarifying concepts and categories related to cryptocurrencies and their regulation, as well as in analyzing scientific approaches to solving legal problems. The practical significance is the development of recommendations for improving national legislation, which will contribute to the development of the cryptocurrency market. The originality of the research consists in comparing Ukrainian legislation with international standards and identifying new approaches to cryptocurrency regulation. The main conclusions concern the necessity of improving the legislative framework and developing specific legal mechanisms for effective control of this area.
The fields of education, science, and sports are fundamental pillars of social infrastructure and represent a priority direction of Ukraine’s budget policy, especially in the context of ongoing decentralization and post-crisis recovery. The aim of this study is to examine the principles of funding for public institutions in these sectors based on assessments and analysis of short-term trends in their financing from the general fund of the State budget. The study presents the structure and management of budget expenditures in accordance with the provisions of the Budget Code of Ukraine, with particular emphasis on examples of institutions in the Odesa region for the period from 2022 to 2024. Methodologically, the study employs a combination of comparative analysis, synthesis, generalization, and methods of logical reasoning (induction and deduction), scientific research methods, and the tabular method. Budget data for local and regional institutions, including educational institutions, research organizations, and municipal sports enterprises, are analyzed to assess funding trends and identify systemic patterns. The study results show an overall positive trend in the increase of funding for education, science, and sports at the regional level. However, the analysis also reveals uneven community development: while some receive considerably larger expenditures to support infrastructure development and program expansion, others exhibit slower but more stable growth, likely due to differences in institutional maturity or strategic planning capacity. In particular, the sharp rise in expenditures for sports facilities in smaller communities may indicate deliberate government efforts to promote inclusive development and the decentralization of public services. The practical significance of the study lies in its potential to inform policymakers and local administrators about the effectiveness and fairness of existing budget allocation mechanisms. The study highlights the importance of improving the efficiency and transparency of government expenditures, enhancing planning tools, and aligning budget policy with the actual needs and capacities of local institutions.
An advanced social welfare system in the context of sustainable economic growth is a crucial element of human life in contemporary conditions. It enables the state to go beyond mere economic growth and provide a range of social guarantees for citizens, meeting the principles of sustainable development and socially significant needs of society. The transformation of social welfare systems occurs in parallel with changes in the global economy, making the scientific discourse on future financial models for social welfare increasingly relevant. This article explores conceptual approaches to constructing financial models for social welfare within the framework of global challenges and structural economic transformation. Fundamental principles of such models are examined, including social justice, intergenerational solidarity, the protection of citizens' social rights, system stability and security, as well as economic efficiency. Various theoretical approaches to financing social welfare are analyzed: universalism, selectivism, subsidiarity, and residualism. The study substantiates the need to transition toward mixed financial models for social welfare, which can better adapt to challenges related to digitalization, population aging, climate change, and geopolitical risks. Particular attention is paid to the role of the state in the social welfare system and potential directions for fiscal decentralization to enhance resilience and effectiveness. The conclusions emphasize the importance of adapting social systems to achieve sustainable economic growth and social equity amid global changes. The author declares no conflicts of interests.
Financial decentralization plays a key role in ensuring the economic stability of cities by enhancing the financial autonomy of municipalities, enabling efficient resource allocation, and mobilizing investments. The article analyzes modern approaches to financial decentralization, its impact on the stability of urban economies, and the main challenges faced by local authorities. The global experience of financial decentralization is examined, particularly models in Germany, the United States, and Scandinavian countries, allowing for an assessment of their potential application in Ukraine. The study highlights the specifics of decentralization reforms in Kyiv, analyzing the dynamics of budgetary indicators, tax revenues, expenditure structure, and investment attraction mechanisms. It is established that financial decentralization contributes to the development of small and medium-sized businesses, increases the transparency of financial flows, and ensures the stability of local budgets. Key threats are outlined, including the risks of excessive debt burden, corruption factors, and tax base instability. The article concludes that expanding alternative sources of municipal financing, such as bond issuance, public-private partnerships, and international financial programs, is essential. Practical mechanisms for strengthening Kyiv’s financial stability are proposed, including tax policy improvements, budget process digitalization, and investment activity stimulation. A comparative analysis of Kyiv’s budget policy with other European capitals has identified key areas for improving local financial management. It is determined that increasing the capital’s financial independence requires active investment attraction, the introduction of flexible tax instruments, and enhanced public control over budget allocation. The study’s findings can be used to develop strategic solutions in municipal financial management, optimize budget planning, and improve resource efficiency within the context of financial decentralization.
ANNOTATION.This article is dedicated to the financial aspects of the post-war recovery of Ukrainian economy.The article considers the issues of choosing the main approaches to solving organizational problems of creating a mechanism for financing the costs of the Post-War Ukraines Economic Recovery Program.Recognizing the importance and complexity of measures to restore the countrys socio-economic infrastructure destroyed by the War, the author focuses on Post-War Recovery, which should not be reduced to restoring the pre-war level and structure of the economy, but will mean the creation of an essentially new Modern Economy that will provide Ukraine with a worthy place in the Global Economic system.Solving this problem will require a choice between centralized and decentralized systems for developing such development programs and mechanisms for their financing.The author argues that the most effective will be a combined option that will allow for taking into account national and regional interests in practice.The decision on the choice of financial institutions through which the post-war recovery program will be financed looks no less important.It is a question of choosing between existing institutions and the need to create new institutions specifically designed for such work.Having analyzed international experience, the author concludes that it is possible to create a tandem of the EBRD-UkrEximBank as the main financial institution of the Economic Renaissance Program.Although it would be more effective to create a special institution in a timely manner -the Bank for Economic Renaissance (BER).Unfortunately, it seems that the time to create such an institution has been lost in the process of many years of discussions around the Ukrainian Bank for Reconstruction and Development.The next important direction is the choice of funding sources, which, in the authors opinion, should include funds from Ukrainian and foreign participants.The Ukrainian part (at least 35 percent) will consist of funds from the state budget, enterprises and individuals.To a large extent, such funds should be accumulated through special loans, including "diaspora bonds".
This paper examines the operational activities of cryptocurrency exchanges and the distinctive challenges associated with their accounting practices. Unlike traditional exchanges, cryptocurrency exchanges operate within a decentralized and highly volatile environment, which presents unique accounting and regulatory challenges. The paper explores various operational aspects of these exchanges, such as spot and margin trading, deposits and withdrawals, commission structures, liquidity management, and wallet services. Additionally, it analyzes the practices related to staking and lending services, highlighting the specific accounting issues faced in revenue recognition, asset valuation, and compliance with evolving regulatory requirements. Given the absence of uniform international accounting standards for digital assets, cryptocurrency exchanges must address several critical accounting issues. These include accurate revenue recognition from transactions, handling of client assets, and establishing robust security measures to protect client funds. The study discusses the implications of accounting for transaction fees and staking rewards, emphasizing the need for reliable revenue recognition methods aligned with existing accounting standards while also accommodating price volatility in digital assets. Furthermore, the paper addresses the unique nature of cryptocurrencies as intangible assets that require special handling in financial reporting. It examines the implications of recording cryptocurrencies held on behalf of clients versus those owned by the exchange, considering the regulatory uncertainties and market volatility inherent in this sector. The discussion extends to compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements, which add to the operational and accounting complexities faced by these platforms. The paper concludes by highlighting the importance of developing new accounting frameworks and standards tailored to the unique characteristics of cryptocurrency exchanges. Such frameworks would support more accurate financial reporting, enhance user trust, and ensure regulatory compliance in a rapidly evolving financial landscape. The findings of this study provide practical recommendations for adapting existing accounting standards to meet the operational needs of cryptocurrency exchanges and underline the role of robust internal controls in mitigating risks associated with decentralized digital finance.
This article examines the application of blockchain technology for creating and circulating new investment assets in the creative industry. The study analyzes the impact of decentralized technologies, particularly blockchain, on the formation of new types of investment assets in the creative sector of the economy and assesses their potential for industry development. The research employs a systematic approach, methods of analysis and synthesis, comparative and statistical analysis, and generalization of expert assessments. The current state and trends in the use of blockchain technologies in the creative industry have been investigated, with a focus on NFTs, intellectual property tokenization, and decentralized autonomous organizations (DAOs). The study concludes that blockchain technologies create fundamentally new opportunities for monetization and investment in creative assets, while also highlighting challenges such as regulatory uncertainty and technological limitations. Recommendations for maximizing the positive impact of blockchain on the creative economy are provided, along with suggestions for further research.
M. Hordyskyi, M. Zborovskyi, O. Kamniev, Y. Pidhorniy
The article is devoted to the study of decentralization's role in improving public finance management. Theprocess of decentralization, which involves the transfer of powers and responsibilities from central to local authorities, is aglobal trend aimed at improving governance, public service delivery, and local economic development by bringing thedecision-making process closer to communities. The article emphasizes that effective financial management, includingbudgeting, debt management, revenue generation, and transparent reporting, enables local governments to meetcommunity needs, maintain fiscal stability, and ensure accountability. The article examines vital legislative reforms inUkraine that have expanded the powers of local authorities, giving them greater control over budgets, taxes, and financialresources. Although decentralization offers significant opportunities, the study identifies challenges such as regionaldisparities, administrative constraints, and conflicts between central and local governments. Potential challenges confirmthe importance of institutional frameworks, financial resources, technological integration, and citizen participation toensure a successful decentralization process. Thanks to reliable financial practices and transparent management, localauthorities can improve the quality of public services and contribute to the state's economic growth and sustainabledevelopment.
This article examines cryptocurrency as the newest form of money, analyzing the main risks, trends, and prospects for its development. The advantages of cryptocurrency, such as decentralization, anonymity, and security, are also analyzed. However, serious risks related to price volatility and the lack of government regulation are also addressed. We analyze the main development trends in the cryptocurrency market, including the growth in the number of users and the increase in transaction volumes.
Financial provision of rural territorial communities in conditions of sustainable development is an important aspect of the country's economic and social development. The successful functioning and development of such communities depend on their ability to attract and effectively distribute the financial resources needed to improve infrastructure, education, health care and other vital areas. In the conditions of sustainable development, which involves a balance between economic growth, social well-being and environmental protection, the financial support of rural communities becomes especially important for the preservation of their unique natural and cultural heritage. That is why the purpose of the presented work is to determine the features of financial support of rural territorial communities in conditions of sustainable development. The methods that were used in the formation of the current study are: methods of analysis and synthesis to determine the key aspects of the development of rural territorial communities; methods of induction and deduction to determine the features of the financial provision of territories; method of comparison; logical method; graphical and tabular methods for visual display of research results. Also, as a result of the study, it was proved that the necessity of diversifying the sources of financing is a prerequisite for the financial provision of rural territorial communities. In particular, such communities should actively attract local tax revenues, state support, as well as use the opportunities of international grants and technical assistance programs. At the same time, effective management of resources aimed at the implementation of sustainable development programs, which includes energy saving, development of local businesses and support of environmental initiatives, becomes an important task. In the context of reforming the financial system in Ukraine, financial decentralization is of particular importance, which opens up new opportunities for strengthening the financial independence of rural communities, at the same time placing greater responsibility on them for the rational use of funds. Rural communities can direct the received finances to improve infrastructure, develop social services, support local entrepreneurs, as well as to environmental and energy-saving initiatives.
The author puts forward the idea that decentralized finance doesn’t act without managerial influence. The management moves from the external circuit to the internal one, there occurs self-ruling and “self-regulation” of the financial system. This indicates the appearance of a new type of financial intermediation—a cyber-social one. The potential of using decentralized finance in post-Soviet countries are formulated the following: freeing up the time of transaction participants due to the autonomy of transactions; a superior degree of information security compared to traditional forms of financial intermediation; financial intermediation cost saving, freeing up human resources; reduction in the speed of transactions; increasing accuracy in contractual relations due to the elimination of the human factor influence; stimulating the development of new business areas expands the competitive environment; information safety due to the constant creation of a large number of backup copies. At the same time, the author identified and substantiated the risks associated with decentralized financial flows, which may have an impact on the well-being of the population of post-Soviet countries. The purpose of this study is to determine the prospects for applying decentralized finance as a growth factor in the well-being of the population in post-Soviet countries.
В статье уточнены теоретико-методологические положения по поводу механизмов децентрализованного финансирования (DeFi) и влияния DeFi на традиционные финансовые институты и развитие финансовых отношений. Раскрыто соотношение традиционного и цифрового финансирования, представлены ключевые определения. Обоснованы современная архитектура децентрализованного финансирования, экономический механизм дезинтермедации в системе DeFi через элиминацию посреднических рисков. Описаны возможности децентрализованного финансирования для экономического развития, обращено особое внимание на его влияние на повышение финансовой доступности. Перечислены риски децентрализованного финансирования, аргументировано, что при принятии решений по политике его регулирования в Российской Федерации важно учитывать влияние на традиционных финансовых посредников в условиях нестабильности внешней среды и незрелости национальных финансовых институтов. Представлена организационно-экономическая схема, характеризующая влияние DeFi на традиционные финансовые институты. Рассмотрена возможность выстраивания экономически безопасной модели суверенного децентрализованного финансирования в России, для чего рекомендовано обеспечить суверенность каждого ключевого элемента архитектуры DeFi, опираясь на российские технологии и оборудование, а также соблюдая отечественные требования в области финансового мониторинга и валютного контроля. Необходим полноценный надзор со стороны Банка России. Разработка соответствующих суверенных решений еще далека от завершения, однако на основе накопленного практического опыта и по мере формирования пула суверенных инструментов и технологий появится возможность для полноценного внедрения DeFi в российскую финансовую систему и механизмы ее регулирования. The publication clarifies the theoretical and methodological provisions regarding the mechanisms of decentralized finance (DeFi) and describes the impact of DeFi on traditional financial institutions and the development of financial relations. The relationship between traditional and digital financing is revealed, and key definitions are presented. The modern architecture of decentralized finance is substantiated, the economic mechanism of disintermediation in the DeFi system through the elimination of intermediary risks is substantiated. The possibilities of decentralized financing for economic development are described, with special attention paid to its impact on increasing financial inclusion. The risks of decentralized finance are listed, and it is argued that when making decisions on the policy of its regulation in the Russian Federation, it is important to consider the impact on traditional financial intermediaries in conditions of instability of the external environment and the immaturity of national financial institutions. An organizational and economic diagram characterizing the impact of DeFi on traditional financial institutions is presented. The possibility of building an economically safe model of sovereign decentralized finance in Russia is considered, for which it is recommended to ensure the sovereignty of each key element of the DeFi architecture, relying on Russian technologies and equipment, as well as complying with domestic requirements in the field of financial monitoring and currency control. Full supervision by the Bank of Russia is required. The development of relevant sovereign solutions is still far from complete, however, based on the accumulated practical experience and as the pool of sovereign instruments and technologies is formed, it will be possible to fully implement DeFi into the Russian financial system and its regulatory mechanisms.
The article examines the fiscal potential of local budgets in the context of fiscal decentralization in Ukraine. The current state and trends in the development of local finances, the main sources of revenues and expenditures of local budgets are analyzed. Particular attention is paid to the tools for increasing fiscal potential, such as optimization of the tax base, increasing the efficiency of tax administration, attracting investment and intermunicipal cooperation. The main challenges and prospects for the development of fiscal potential in the context of decentralization are identified, in particular, the uneven economic development of regions, dependence on state transfers and the need to increase the transparency of budget funds. It is found that the structure of local budget revenues has changed significantly as a result of decentralization. There is an increase in the share of own revenues, in particular tax revenues, which has a positive impact on the financial autonomy of local communities. The analysis has shown that the main expenditures of local budgets are aimed at financing education, health care, social protection, and housing and communal services. The main challenges for the development of the fiscal potential of local budgets are identified, including uneven economic development of regions, dependence on state transfers, and the need to increase the efficiency of budget resources. A number of measures are proposed to increase the fiscal potential, including optimizing the tax base, improving tax administration, attracting investment, and developing inter-municipal cooperation.
Purpose. The aim of the article is the study of the content of the functioning of local finances, the analysis of the main challenges and crisis phenomena arising in the field of local budgets in the conditions of the martial law of Ukraine. Methodology of research. The research was conducted using a dialectical approach to studying the current state of development of the content of local finances and financing the needs of local budgets. General scientific and special methods were used, in particular: analysis, synthesis, induction, deduction and generalization – to develop the provisions of the theory and practice of the content of local finances; monographic – when studying literary sources on issues of the content of local finances; epistemological – to clarify and deepen the content of the category "local finances"; system and analytical – when processing the information received regarding the financing of the needs of local budgets; abstract and logical – for formulating the conclusions of the study. Findings. A study of the theoretical foundations of the category "local finances" was conducted. The peculiarities of their use in the context of budgetary decentralization of territorial communities were identified. An analysis of the financing needs of local budgets under martial law was conducted. An assessment of the dynamics of revenues and expenditures of local budgets of Ukraine was carried out. The main problems of local budgets were identified. Originality. A review of literary sources was carried out to clarify the meaning of the concept of "local finances", which made it possible to offer a new understanding for optimizing the budgetary decentralization of territorial communities. Prospects for the development of financing of local budgets of Ukraine in the conditions of martial law are offered. Practical value. The obtained results of the study will contribute to increasing the effectiveness of the formation and development of financing of local budgets of Ukraine in the conditions of martial law. Key words: local finances, budget decentralization, territorial communities, local budgets, budget revenues and expenditures.
Law, as the main regulator of social relations, should objectively keep up with their rapid modern changes, respond to the fact that new relations are emerging based on the latest digital technologies. Cryptocurrency, as the general name of the latest technologies, is a new factor that affects economic relations more and more every year. During the last five years, when many countries have already actively begun to include the legal regulation of cryptocurrencies in the framework of national legislation, Ukraine remained aloof from this law-making process. However, every year it became more and more obvious that such a state policy would only lead to lagging behind other states in the development of the latest technologies. Since the beginning of 2022, the understanding of the need for the development of digital technologies, including with the help of adequate legal regulation of “cryptocurrency” in Ukraine has begun.