Oleg P. Kultygin, Natalia N. Lyublinskaya, Elena N. Tokmakova, Alexander E. Trubin
The article deals with the research on global crypto-currency market and analysis of its development trends. Special attention was paid to national regulation of crypto-currency and activity connected with it, which is topical today due to introduction of new sanctions against Russia, including those in the field of crypto-exchanges. Through analyzing the development of finance blockchain-systems the authors identified the vector of their developing in the direction of raising the speed of work, upgrading algorithms of consensus, increasing security and control over the mining sphere and turnover of crypto-currency in Russia. A conclusion was drawn that it can foster the extended use of crypto-systems of distributed ledger by present day banks. As goals of the research the authors mentioned problems connected with the opportunity to use blockchain technologies in the credit and finance sector and forecasting effects of such use.
Бабанов Андрей Борисович, Южно-Российский институт управления – филиал Российской академии народного хозяйства и государственной службы при Президенте РФ, Ростов-на-Дону, Россия
The need for the use of new, digital forms of organization of monetary and financial settlements with foreign partners, as well as the formation of a national system of secure payments. The article presents the result of analysis of motivations of introduction of digital currencies of central banks (positive and negative moments of the considered process). The article gives an overview of existing international payment systems, including the Russian one, and identifies advantages and disadvantages. The main tendencies of the cryptocurrency market as a possible mechanism of formation of decentralized finance are considered.
The article is devoted to a comprehensive study of the impact of digitalization on the transformation of global financial markets in the context of modern global technological changes. The paper analyzes the main trends and challenges of the digital transformation of the financial sector, identifies key technological drivers of change, and examines their impact on the development of financial institutions. The article examines the role of such technologies as artificial intelligence, blockchain, big data, and cloud computing in the transformation of financial services. Particular attention is paid to the analysis of the development of digital financial technologies in leading countries of the world, in particular the USA, China, and the countries of the European Union. The specifics of the implementation of alternative payment systems and their impact on international trade are studied. The article highlights the processes of transformation of financial institutions under the influence of digitalization, including changes in the organizational structure, operational processes, and client services. The main risks and challenges of digital transformation are analyzed, in particular cybersecurity issues, regulatory aspects, and technological risks. Key trends in the adaptation of international financial markets to the digital reality are highlighted, including the introduction of central bank digital currencies, regulation of the crypto-asset market, development of alternative financial systems and integration of financial technologies. The role of blockchain technologies in increasing the efficiency and security of international financial transactions is investigated. The issues of cybersecurity and data protection as critical elements of modern financial infrastructure are considered. Promising areas of further research are outlined, in particular, the analysis of the impact of central bank digital currencies on financial stability, research on the effectiveness of algorithmic trading and the study of the long-term consequences of decentralized finance for the traditional banking system.
Subject. This article discusses the development of the conceptual framework in the theory of finance in the context of digitalization. Objectives. The article aims to review and summarize the academic literature on decentralized finance (DeFi) and assess their impact on the development of the global financial system. Methods. For the study, we used the methods of comparative, logical and conceptual analyses, expert assessment, and the heuristic modeling. Results. Based on a review of scientific foreign and Russian financial literature regarding the concept of Decentralized Finance, the article finds that there is no single approach to this concept yet. Most authors associate decentralized finance with the use of innovative financial instruments based on distributed ledgers, and almost all researchers believe that the development of decentralized finance will lead to a change in the global financial architecture without the participation of financial intermediaries. The article proposes to separate the concepts of Decentralized Finance, Decentralized Financial Instruments, Decentralized Financial Technologies, which can help organize and sort out the research vocabulary, taking into account the transformation and changes in the global financial architecture. Conclusions and Relevance. The development of information technology has a serious impact on the financial sector and is accompanied by the transformation of old concepts and the emergence of new ones, including decentralized finance. The results expand the theoretical apparatus of modern financial theory, can be applied in areas related to the use of decentralized financial technologies and financial instruments, as well as in the formation of new training courses and for understanding trends in the development of the financial sector.
The relevance of the research topic is due to the fact that many crypto investors are attracted by the high liquidity of cryptocurrencies, low transaction costs and ease of transactions via the Internet. In contrast from Fiat currencies, corporate stocks, and bonds, cryptocurrencies do not have an underlying value. demand therefore market cost to a greater extent depends on how wellknown and popular this cryptocurrency is. Also, the price of cryptocurrencies is influenced by market sentiment, namely the thoughts, feelings and emotions of investors regarding the asset. With the help of traditional asset valuation models, it is impossible to qualitatively explain the latest changes in the price of cryptocurrencies. However, some financial models point to that cryptocurrency is currently overvalued. Apparently, the hypothesis of financial instability is better than any of the verified economic theories suitable to explain recent changesin prices of cryptoassets. The theory suggests that because the cryptocurrency market is moving against the macroeconomic fundamentals of the economy, emotions are a major factor. determining demand on a given market. In this article, the authors examined the influence of behavioral financial factors on investment decisions in the cryptocurrency market. Multiple regression analysis was used to examine this effect. The purpose of the article is to study the development of cryptocurrency in Kazakhstan and assess the impact of events on the value of cryptocurrency. Based on this goal, the authors put forward the following tasks: to analyze and evaluate the use of cryptocurrencies in the modern economy; explore the features of cryptocurrency pricing.
The purpose of this article is to consider the prospects for the integration of blockchain and artificial intelligence (hereinafter referred to as AI) as an innovative approach to modernisation of various economic sectors. The authors analyse the possibilities of using this technological merger to optimise business processes, increase transparency and reduce transaction costs in different sectors, including finance, healthcare, transport, energy, etc. Particular attention is paid to the benefits of synergy between AI and distributed ledger technology, which allows for more efficient and sustainable systems of managing data and assets. The research object in this article is the process of integrating blockchain and AI. The subject of the study is the effectiveness of modernisation of various economic sectors through the combination of these technologies. The research method is an analytical review of scientific publications and successful implemented projects. The results of the current article lie in the analysis of the advantages of integrating blockchain and AI as well as forecasting further prospects for the development of this area. The practical significance of the work consists in the fact that the obtained results can be used to design strategies and plans for the implementation of this technology integration into domestic business.
Finance, decision-making, and AI interaction have been transferred to the digital economy due to the reduction of transaction costs and increase in security through blockchain technology. Integration of artificial intelligence (AI) and big data analytics with decision support systems (DSS), with a focus on risk assessment, predictive analytics, and strategic planning, has been explored. AI and DSS collaborated to deliver responsiveness and flexibility across several industries, leading to improved, data-driven decision-making. The current and future paths of AI with a focus on finance, healthcare, and customer service, in addition to ethical problems, have also been discussed. Future developments in the digital economy, such as cybersecurity, decentralized banking, and quantum computing, have been explored to optimize benefits and reduce risks.
Carlos Alberto Durigan Junior, Mauro de Mesquita Spínola, Rodrigo Franco Gonçalves, Fernando José Barbin Laurindo
Central Bank Digital Currency (CBDC) can be defined as a virtual currency based on node network and digital encryption algorithm issued by a country which has a legal credit protection. CBDCs are supported by Distributed Ledger Technologies (DLTs), and they may allow a universal means of payments for the digital era. There are many ways to proceed, they all require central banks to develop technological expertise. Considering these points, it is important to understand the new IT governance in the financial markets due to CBDC and digital economy. Information Technology is an essential driver that will allow the new financial industry design. This paper has the objective to answer two questions through an updated Systematic Literature Review (SLR). The first question is What IT resources and tools have been considered or applied to set the governance of CBDC adoption? The second; Identify IT governance models in the financial market due to CBDC adoption. Bank for International Settlements (BIS) publications, Scopus and Web of Science were considered as sources of studies. After the strings and including criteria were applied, fourteen papers were analyzed. This paper finds many IT resources used in the CBDC adoption and some preliminary IT design related to the IT governance of CBDC, in the results and discussion section the findings are more detailed. Finally, limitations and future work are considered. Keywords: Blockchain, Central Bank Digital Currency (CBDC), Digital Economy, Distributed Ledger Technology (DLT), Information Technology (IT), IT governance.
In the current conditions, education is endowed with strategic importance as a sphere of social activity that directly forms the level of intelligence of the population, ensuring competitiveness and innovation in the development of the country's economy. Therefore, the study’s relevance is because the educational capital obtained in the learning process is a combination of theoretical knowledge, practical skills, work experience, and personal characteristics that bring a person income during his career and stimulate further investment in education. Education impacts each citizen’s income and directly affects the economic development of the country, its financial capabilities, and national competitiveness. Thus, this article aims to reveal the critical aspects of republican and local financing of education in Kazakhstan and the prospects for its development. The methodological basis of the research is formed by a system of general scientific and unique research methods: synthesis, system-analytical analysis, and abstract-logical method. The critical result of the work is the systematization of acquisitions within the framework of the researched topic and the study of the features of optimizing the decentralization of education financing in Kazakhstan. Proposed: to increase the efficient distribution of financial resources at all levels of the budget system; increase the opportunities for educational institutions to raise additional funds through educational innovations, expand the list of paid services provided by such institutions; carry out decentralization of education, taking into account the characteristics of the regions, their production potential, the demographic situation and the interests of territorial communities. The results of this scientific study, as well as the conclusions formulated on their basis, are of significant importance both for the scientific community and for financial experts and practitioners from the educational field since they have a structured presentation of the material based on which logical and constructive conclusions are drawn, which may have an impact on the subsequent processes of reforming the financial provision of education in Kazakhstan.
Most modern digital technologies, which are part of the fourth industrial revolution, can be used to improve the efficiency of production processes in the oil and gas industry, in particular, in exploration, planning and optimisation of well construction and maintenance operations, secondary oil and gas recovery methods and enhanced oil and gas recovery. Information flow management can significantly reduce operating costs associated with oil and gas field logistics. Production processes in the oil and gas industry are accompanied by the collection, transmission, processing and storage of significant amounts of information aimed at making and implementing the necessary decisions. In these conditions, big data management technologies are becoming increasingly important. The proliferation of digital technologies, given the peculiarities of oil and gas technologies, requires improvement of measures and means of protection against unauthorised interference with information flow management processes. The use of distributed ledger technology makes data leakage impossible and provides a high level of protection of the information field. The conducted research has identified areas of rational use of simulation software and special applications in the form of automated calculation algorithms in modelling the work processes of oil and gas equipment. Simulation programs do not require a mathematical description of the oil and gas machine's workflow, but are ineffective in the case of a significant number of calculation operations. The use of an automated calculation algorithm is advisable if it is necessary to involve numerous arrays of source data, the analysis of which involves the implementation of numerous calculation procedures. Increasing the share of digital technologies in the educational process involves the widespread introduction of electronic document management, the legalisation of electronic signatures and distance learning methods.
Open access
Economic and Technological Developments in Russia
Economic, Social, and Public Health Issues in Russia and Globally
The paper considers the question that has gained relevance in the last decade: whether the cryptocurrency bitcoin is money. The economic literature provides different opinions on this issue. The analysis shows that disagreements arise because of the different understanding of the category of ‘money’ rather than because of the nature of bitcoin. The author analyzes popular interpretations of money in terms of their applicability to the definition of the role and place of cryptocurrencies in the financial system. The purpose of this study is to define money as a financial instrument that linksthe creation of gross social product with its distribution. The author believes that money emerged and exists as a tool that ensures a connection between the contribution of each economic entity to the total product of society and the right to receive an equivalent amount of goods from this gross product. At the same time, the author defines money as an ‘ideal right’ to receive a share of the gross social product. In this regard, the analysis of bitcoin shows that this cryptocurrency allows obtaining goods from the gross social product in many countries, while bitcoin owners do not contribute to the gross social product. Based on this, bitcoin cannot be considered money; it is a money substitute, or surrogate money. At the same time, bitcoin was created as money and performs the functions of money, but to a limited extent. Bitcoin can only perform the functions of money as a supplement to an existing official currency. It is not capable of functioning as the only currency in a society. The interpretation proposed in this paper can be used for the purposes of developing the Russian law on cryptocurrencies is currently being worked on by the Government and the Central Bank of Russia.
Open access
Economic and Technological Developments in Russia
Blockchain Technology Applications and Security
Economic, Social, and Public Health Issues in Russia and Globally
Goal The article examines the concept of "cryptocurrency", substantiates the popularity of this new type of financial instrument in the economic space, highlights the main features of cryptocurrency as a type of virtual money and its impact on the economic system. Methodology. The following key features of cryptocurrency are highlighted: payment for goods and services; minimum level of impossibility of abduction; payments, fast and direct transactions; investment asset; business development on cryptocurrency, the functional roles of cryptocurrency in the digital economy are considered, trends and prospects for their development are investigated. Results.The main types of the most popular cryptocurrencies today have been considered, and their common features have been unified. It has been established that the most widespread cryptocurrency is Bitcoin. Market capitalization of cryptocurrencies provided. Scientific novently. An overview of crypto-spot exchanges is presented. The legal status of cryptocurrency was investigated, and it was found that more and more countries are granting cryptocurrency the status of a legal and legal means of payment, in some places equating it to electronic money. Practical significance. It is noted that cryptocurrency has both positive features and disadvantages, the main of which is the increased risk of fraud and fraud using digital currency.
Финансовый университет при Правительстве Российской Федерации, Москва, Россия, Грачева Анна Дмитриевна, Лебедев Игорь Александрович, Финансовый университет при Правительстве Российской Федерации, Москва, Россия · 6 authors
The article deals with the problem of using cryptocurrencies to legalize income received from the sale of narcotic substances. Due to the active development of digital technologies, the availability and ease of use of cryptocurrencies, cases of using crypto markets for drug trafficking have become more frequent. In this regard, the authors assessed the scale of the problem and the volume of proceeds from drug trafficking using cryptocurrencies, and also considered the main territories characterized by the implementation of such activities. In conclusion, measures were proposed to minimize the risks of using cryptocurrencies to legalize income from drug trafficking.
Ростовский государственный экономический университет (РИНХ), Ростов-на-Дону, Россия, Евлахова Юлия Сергеевна
The article considers non- fungible tokens as one of the types of digital financial assets. The purpose of the article is to study the modern NFT ecosystem and analyze the parameters of the NFT market. The indicators published in the analytical reports of the NFTGO consulting company, as well as scientific publications, were used. The definitions of the term "non- fungible token" are summarized, the criterion for classifying NFT objects is formulated; the participants of the NFT market are considered, the distinctive features of this market are highlighted. Based on the results of a quantitative analysis of the indicators of market capitalization and trading volume, conclusions were drawn about the NFT market in 2022. The elements of the NFT ecosystem are characterized, among which the development of NFT finance is the most promising.
The concept of Bitcoin was conceptualized by Satoshi Nakamoto, a mysterious symbol. They published a state paper estimating the value of Bitcoin in May 2008. He stayed quiet and did not reveal who he was. He sketched out how the money would perform. The primary dominant blockchain advancement was Bitcoin, or advanced cash exploration [ 1 ]. The current advancement was called blockchain, and it was created to separate the technology that worked Bitcoin from the money and utilize it for various interconnected organizational participation. Nearly every major money-related academy in the entire world is doing blockchain inquiries at this point, and 16% of funds are anticipated to be utilizing blockchain in 2016 [ 2 ]. The “smart contract” was the third innovation, epitomized in a newer block-chain technology framework known as Ethereum, which created small software programs specifically into the blockchain that permitted budgetary gadgets, such as advances or bonds, to be spoken to instead of being treated as the cash—the same with tokens of Bitcoin. The fourth biggest development, “Proof of Stake,” is the current cutting-edge blockchain technology. Modern-era blockchains are backed up by “Proof of Work,” in which choices are made by the collective group with the most processing power [ 3 ]. These bunches are called “miners” and work tremendously at information centres to supply this security in trade for crypto cash instalments. These data centres lack unused frameworks, changing them with intricate monetary disobedient for a comparable if a not higher level of concern. The last crucial advancement of blockchain scaling is something that’s happening. A flexible blockchain quickens the method without relinquishing security by finding out how many computers are essential to approve each exchange and isolating the work effectively [ 4 ]. To oversee this without compromising the legendary security and vigour of blockchain may be a troublesome issue, but not a recalcitrant one. A scaled blockchain is anticipated to be quick and sufficient to exert control over the network of things and compete with the major instalment brokers (VISA and Quick) managing accounts worldwide. Bitcoin may be a sort of computerized cash that can be traded on the blockchain, the shared record innovation [ 5 ]. Bitcoins are, in substance, power changed over into lengthy strings of cyphers that have cash value. Bitcoin may be a form of digital currency, made and held electronically [ 6 ]. Nobody is in charge of it. There are no printed Bitcoins, such as typical cash, they’re created by individuals, businesses running computers and utilizing software that tackles scientific issues. Bitcoins are, in substance, power transformed into lengthy strings of cyphers that have cash prices. Bitcoin may be a mode of advanced cash, produced and adhered to by electronic cash. Blockchain is a distributed ledger automation that is worn to exchange Bitcoins. It is additionally finding its function in different alternative spaces, such as the e-polling framework, administration, well-being, and so on. The insurance of exchanges has gotten to be like the main concern nowadays.
This paper explores the theoretical underpinnings of blockchain technology and its practical applications in enhancing banking security. The financial landscape is experiencing a seismic shift as disruptive technologies like blockchain emerge. Blockchain, with its core tenets of decentralization, immutability, and transparency, offers a transformative approach to banking security. This paper delves into the theoretical foundations of blockchain and explores its practical applications in bolstering bank security. Theoretical Underpinnings at its core, blockchain is a Distributed Ledger Technology (DLT). Imagine a digital record of transactions, not held by a single entity, but replicated and synchronized across a vast network of computers. This distributed nature eliminates the need for a central authority, fostering trust and transparency within the system. Cryptographic hashing adds another layer of security. Each transaction on the blockchain is cryptographically hashed, generating a unique fingerprint. This fingerprint is linked to the previous transaction's hash, creating an immutable chain of blocks. Any attempt to tamper with data would invalidate the entire chain, ensuring the integrity of every transaction. Consensus mechanisms play a vital role in ensuring network agreement. These mechanisms, like Proof of Work or Proof of Stake ensure all participants on the network agree on the validity of transactions and the current state of the ledger. Practical Applications in Banking Security, Traditional banking systems rely on centralized ledgers, susceptible to fraud and manipulation. Blockchain disrupts this paradigm by offering, Enhanced Transaction Security, by eliminating intermediaries and using cryptography, blockchain significantly reduces the risk of fraud and errors in financial transactions. The immutable nature of the ledger ensures transactions cannot be reversed or altered once recorded. Streamlined Regulatory Compliance, regulatory compliance is a constant challenge for banks. Blockchain simplifies the process by providing an auditable and transparent record of all transactions
This concluding chapter ties together key findings from the across the chapters of the volume, while also positing some limitations of the research, and offering future avenues of inquiry. The chapter aims to tie together the rich tapestry of contributions made by authors in preceding chapters, and while summing up important elements of their work, to offer pathways for continued interest in non-fungible tokens (NFTs).
Svitlana Volosovych, Mariia Nezhyva, Antonina Vasylenko, Л. С. Морозова · 5 authors
The Russian-Ukrainian war transformed the needs of consumers of financial services, both in Ukraine and abroad. On the one hand, the civilian population and the Armed Forces of Ukraine needed immediate help from the international community. On the other hand, individual and institutional investors were concerned about threats to traditional financial investments. The purpose of the article is to identify the priority directions for the development of the cryptocurrency asset market against the background of the Russian-Ukrainian war. The article presents an analysis of the cryptocurrency asset market with an emphasis on its structural changes in the conditions of the Russian-Ukrainian war. In the study, a survey was conducted to find out the impact of the war on the Ukrainian cryptocurrency market. The analysis of the survey results substantiates the hypothesis about the impact of increased hacking attacks by pro-Russian forces and missile attacks on the functioning of the cryptocurrency market in Ukraine. It has been confirmed that investments and payments are promising segments of the cryptocurrency market in Ukraine, in which, the most interested users and potential users of cryptocurrency are. Based on the received data, the weaknesses and strengths of the functioning of the cryptocurrency market in the conditions of war were identified. Threats and opportunities for the development of the cryptocurrency market against the background of Russian armed aggression are substantiated. The conducted research made it possible to formulate scenarios for the development of the cryptocurrency asset market in Ukraine in war conditions and the conditions for their implementation.
Bitcoin is an asset with high risks, and a significant part of its volatility can be explained by the speculative component. Parametric variance-covariance (VaR) methods are not applicable for assessing the risks of bitcoin investment, since log returns are not distributed according to the normal law. Autoregressive risk assessment models (such as ARIMA-GARCH) for bitcoin volatility overestimate risks at times of sharp exchange rate changes and they underestimate them at times of less significant rate changes compared to historical volatility. The grid search for the smoothing parameter in the exponentially weighted moving average method is potentially interesting for modeling the risks of bitcoin investment. This makes it possible to fully take into account the autocorrelation of the bitcoin rate to the levels of previous periods and the volatility of the asset. As a conclusion, there are currently no econometric models that can explain and forecast the volatility of bitcoin in the medium and short term, considering the available factors in the market.
The article explores the impact of technological innovations on the economy and business in the context of digital transformation.It is investigated that key technological trends, such as 5G, Wi-Fi, energy-efficient processing, advanced data recognition, and intellectual data processing, cloud, and edge computing, converge to form the technological foundation necessary for successful digital transformation.As a result, digital transformation is often accompanied by significant losses, and costs exceeding the planned ones, and many projects lead to changes that do not justify expectations from the use of information technologies.Investments in analytics are necessary but do not guarantee a global restructuring of the business, its core transformation, during which even a minor error can halt the supply chain, destroy a product, or even put an end to the business.It is noted that to achieve success, it is necessary to prioritize strategy over technology.Under these conditions, the task of goal-setting comes to the forefront -it is necessary to start with defining the ultimate goal of the business (profit, perspective, strengthening market position, etc.) and only then move on to the search for technology that will allow achieving it.As businesses focus on providing greater mobility for employees, moving most corporate workflows to cloud storage, digitization provides staff with access to what they need and when they need it, supporting a high level of productivity regardless of location.The article also examines the constructs of economic development in the context of information technologies, focusing on the development of ecosystems of crypto assets, metaverses, and non-fungible tokens (NFTs), central bank digital currencies (CBDC), institutional investments in the digital economy, and tokenization of traditional funds.It is emphasized that these Vda a perspektivy 1(32) 2024
Ministry of Natural Resources and Environment of the Russian Federation, David A. Sabanov
The purpose of the article is to study crypto currency as a product of development and a phenomenon of the digital economy. The article determines that the most common definition of this as a means of payment, crypto currency is digital money that does not have physical expression and exists in the digital environment. They are based on block chain technology, which serves to ensure transactions and their security. In a certain sense, we can consider that crypto currency is a modern analogue of the physical money that we use in everyday life. In the modern world, digital assets carry hidden capabilities in terms of circumventing existing sanctions, combating inflation and devaluation within many countries. Although crypto currency has not yet been fully integrated into the international financial sector, it is already having a significant impact on financial markets, which could play a significant role in the future of the international economy. It is concluded that crypto currency, as a product of the digital economy, is a complex mechanism in its structure, which is aimed not only at understanding the very technological base of the crypto currency industry in terms of the versatility of the tools and concepts included in it, but also in attempts to establish a unified international partnership in terms of discussing possible concepts and common opinions. One way or another, while creating great opportunities for financial transformation and adaptation of new technologies, crypto currency also carries great risks and difficulties associated with legal regulation.
The article studies the structure of public finances, presents their principles, functions and content of the process and interrelations between the cycles of their accumulation, formation and distribution. The levels of public finance are presented taking into account the principles of client-oriented state. The priority directions of optimization of public finances and change of their role in the issue of development of social sphere of economy are formulated. The conducted research gives grounds to assert that in modern conditions the public finance system is based on decentralization, delegation of powers and responsibilities to the local level of management.