Despite all the fears surrounding cryptocurrencies, the rates of transactions increased and became an undeniable reality, and with the developments of the events that the world is going through, especially since the emergence of the new Corona virus and its declaration of a global pandemic, several important questions have emerged regarding dealing in these currencies considering the current epidemic. This study aims to know the extent to which dealing in cryptocurrencies has been affected by the emergence of the new Corona virus, and will it become a haven for transactions considering the closure decisions adopted by the countries of the world, or whether the uncertainty of the current situation increases the fear of dealing with it, especially as it depends on the forces of demand and supply. The study found that transactions in these currencies decreased at the beginning of the crisis, due to fears of a depreciation in their value, which prompted individuals to sell them on stock exchanges, but with the policies of closure and travel ban, dealing in these currencies increased again. Central banks tended strongly considering this crisis to think about maximizing benefit from dealing in these currencies.
Authors research the current problem of innovative development — digitalization of financial assets. They review the key aspects of organizing the information system operator using the distributed ledger technology. The main imperative requirements of the legislation for operators of the information system are highlighted. The main alternatives of IT-infrastructure creation are considered. Also the matters of operational risks management and organizational and economic efficiency of activities are revealed.
Umar Aptievich Bachaev, Eliza Aptievna Abdulazizova
This article reveals the economic content of the cryptocurrency, which has recently become widely known and spread. The system of direct payments was a response to the global financial crisis, the consequences of which have shaken the financial system of many countries. The authors analyze the scientific achievements of foreign and domestic scientists, which allows to identify a number of advantages and disadvantages of the new currency based on information. Along with the technological superiority in this direction, there are still questions concerning methodological, methodological and legal components of the cryptocurrency. Bitcoin is characterized by decentralization: a special program code regulates the work of the network members, as well as the schedule of emission, which is limited in itself, because the generation of coins is closed and the number of PTSs is constant. The introduction of cryptocurrency has a number of other positive effects: irreversible transactions, low transfer fees, complete isolation of the currency from inflation, etc. At the same time, the cryptocurrency has negative consequences. For example, the inability to track remittances and the vulnerability of the system create the preconditions for illegal operations: money laundering, capital flight, terrorism, etc. Another negative feature of the cryptocurrency is its dependence on supply and demand. Thus, the legal status of the cryptocurrency in many countries, including Russia, is not fully defined due to its ambiguous attitude. However, it should be admitted that its appearance on the world market is a phenomenon that in theory can fundamentally change the existing financial system.
Changing behavioral skills of consumer financial services and the growing competitive pressure of startups are destroying traditional business models and prompting the creation of new strategies. For this reason, banks and other regulated financial intermediaries strive to quickly master developments in the field of financial technologies and change the formats of customer service, taking into account the capabilities of their budgets. The existing methods of making cross-border transfers and non-cash payments using their traditional forms, as well as new-generation digital financial instruments, are not supported by a high-quality regulatory framework. In this regard, it is important to study the stages of transformation of forms of interaction between participants of non-cash payments under the influence of the scientific and technical process, a comparative analysis of modern methods of international payments, and justification of mechanisms for integrating digital financial instruments based on distributed Ledger technology into cross-border settlement and payment operations. We also analyzed internal Bank programs for organizing internal control and managing Bank risks, using the example of Sberbank. The results of the study of these problems are reflected in this article.
Digitalization and Economic Development in Agriculture
This article is devoted to cryptocurrency as the newest form of currency in an era of a rapid IT development. The cryptocurrency<br> is substantially known to have a number of advantages, and, thus, could be integrated into the global financial<br> system to increase its effectiveness. However, there are some issues concerning its usage. In particular, a possibility to use cryptocurrency anonymously might cause some issues with taxation and also lead to an increasing number of illegal<br> transactions. In conclusion it is stated that in the medium run cryptocurrency might qualify as the global currency and<br> even replace fiat money.
Cryptocurrencies have become one of the most relevant topics in recent financial and economic issues. Today, the main features of cryptocurrency are decentralization, ability to be considered as means of payment, high liquidity, absence of an issuer as any central authority, irreversibility of payments and transparency. The growth of cryptocurrencies among other world currencies allows them to be a highly profitable asset to invest in and stimulates the interest of new miners. However, there are some risks arising. Firstly, the risk related to governmental restriction and regulating laws about usage of cryptocurrency. Secondly, there is a risk of fraud and no opportunity to accuse those responsible due to the anonymity of users. And last but not least, high volatility of cryptomarket. Keywords: bitcoin exchange rate, cryptocurrency, financial index, currency pair, metal futures, correlation-regression analysis, forecast of bitcoin value dynamics.
The article is devoted to the consideration of the features of the financial system development in the conditions of technological change, total digitalization of economic activity and social relations. The study presents current Russian and foreign practices and trends in the development of digital technologies in the financial system. The author critically examines the formation of institutions, the use of new tools and mechanisms in the decentralized sphere and the sphere of public Finance. The risks of digitalization that pose threats to certain elements of the financial system are identified. There is no conflict of interests.
Open access
Economic and Technological Developments in Russia
Economic Development and Digital Transformation
Digitalization and Economic Development in Agriculture
The article considers the origins of the fourth industrial revolution, the impact of new IT processes and their integration into society and economy. The authors focus on the idea of creating a cryptocurrency Bitcoin and a new payment system based on the blockchain platform. The innovative components of blockchain technology are presented. The technological changes caused by its development are analyzed. The problems of the financial industry and the technological processes occurring in the banking market are analyzed in detail. The prerequisites and the innovation process of the formation of a decentralized monetary system are explained. The authors propose a new concept of «parallel money systems» and formulate the principles of centralized and decentralized approaches to the organization of the monetary system. The features of building a decentralized monetary system are described; its advantages and disadvantages are formulated. A number of arguments in favor of the validity of the adoption of the new form of the monetary system is given and substantiated; the difficulties of its development are analyzed.
Марат Рашитович Сафиуллин, Mikhail Valer'evich Savelichev, Leonid Alekseevich Elshin
This article explores the potential of using cryptocurrency as universal currency in the conditions of transition of the global economic system towards sixth technological paradigm. The goal of this research consists in analysis of the patterns of co-evolution of the global financial system, technological system, and global economy. Based on the historical material, the author demonstrates how shift in technological paradigms is accompanied by financial crises, and result in the changes of the world financial system. Over the course of time, the gold served as the universal currency, but the advancement of technologies demanded the transition towards more flexible forms of world currency based on the national currencies of most industrialized countries. Currently, the transition to the technology of the sixth technological paradigm is followed by the global financial crisis. The U.S. dollar is not handling the functions imposed by the latest technologies upon monetary systems. The conclusion is made that finite currencies are being replaced by an innovative generation of monetary systems that are based on cryptocurrency. The authors systematize the innovation forms of investment, accounting, keeping and saving of funds, which are based on cryptocurrency and blockchain. It is demonstrated that innovation financial instruments, including different types of cryptocurrency, tokens, smart contracts, and cryptocurrency exchanges, open new opportunities for effective investment in the technologies of sixth technological paradigm. The results of research can be valuable for the government branches in establishment of the policy for usage of cryptocurrency and blockchain for entrepreneurs dealing with developments in the area of practical implementation of cryptocurrency as innovative currency.
The article discusses the problems of a new type of electronic money - cryptocurrencies. It is shown that today there is no common understanding of cryptocurrency in the world in some sources, cryptocurrency is defined as the currency of the future, in others - as something unpromising. In accordance with this, the existing formulations of cryptocurrencies were studied and the opinions of experts in the field of electronic money were considered.
Crises frequently weaken subnational governments but in some cases they lead to greater decentralization. Does this decentralization, however, support the search for optimal crisis response strategies? Generally speaking there are several arguments, which suggest that decentralized systems will manage crises better than centralized ones. This article, however, considers two scenarios (decentralization of weakness and decentralization of responsibility) where the apparently increasing autonomy of subnational governments leads to important problems. Decentralization of weakness emerges when the central government for certain reasons refuses to actively implement an anti-crisis policy. Under these conditions, regional measures, while to some extent compensating the inactivity of the central government, create a number of other problems -that of external effects, possible ideologization of politics and insufficient use of expert knowledge. Decentralization of responsibility emerges when regions accept responsibility for implementing anti-crisis measures, but the center keeps control over resources -thus, regions have to focus on competing for central financing. For the modern Russia, the risks of these two scenarios are substantial.
The authors consider several evidences of the crisis state of the theory of human capital. Firstly, we are talking about the observed growth in the profitability of “non-human” capital in comparison with human capital in recent years. And secondly, we are talking about an increase in staff shortages with a growing education system and an increase in the cost of its services. These phenomena have no explanation in the classical theory of human capital. The authors, however, do not believe that these problems indicate the collapse of the theory of human capital. Looking at the problems of human capital in the context of the development of the crypto economy and the underlying distributed ledger technologies, they discover tools that can be used to resolve the crisis or, at least, mitigate its manifestations.
The main goal set in this monograph was to create an economic and legal model for financing long-term and capital-intensive investment projects utilizing the potential of DLT (Distributed Ledger Technology) so that the new solution is an effective alternative and is adapted to existing legal possibilities (compliance-by-design approach). The monograph is the most important result of the work carried out as part of a grant financed by the Polish National Science Centre, and contains a proposal for such a model (see Chapter 7 ).
A.G. Luchkin, О.Л. ЛУКАШЕВА, Н Е Новикова, Vitalik Melnikov · 6 authors
The subject of the study is cryptocurrencies from the perspective of the possibility of using them as a means of payment in the context of economy digitalization. The aim of the work is to assess the possible consequences of the further spread of cryptocurrency in the global financial system and to find ways to overcome them. The article analyzes the history of the emergence and development of money circulation systems from the gold standard to modern conditions for the emergence of cryptocurrencies, and also discusses the possibilities of using cryptocurrencies in fraudulent schemes. As a result of the study, the following tasks were solved: a historical analysis of money circulation systems was carried out; modern trends in the development of modern payment systems were revealed; the possibilities of using electronic and virtual money in modern conditions of digital economy development were analyzed; digital fraud opportunities were evaluated; the ways of regulating cryptographic money turnover were revealed. A historical analysis of monetary systems development enables to identify the objective reasons for the emergence of cryptocurrencies and the need to develop a legal and economic mechanism for their regulation in the digital economy development. Description of cryptocurrency fraud schemes enables to identify possible ways to stop them. The problem of organizational development of the settlement of relations in the field of cryptocurrency exchange, which will prepare the Russian financial system, reduce potential risks and learn how to use the benefits arising from the cryptocurrency turnover, is being solved.
Sep 30, 2019·Scientific Bulletin of Ivano-Frankivsk National Technical University of Oil and Gas (Series Economics and Management in the Oil and Gas Industry)
The aim of the study is to evaluate innovative technologies for social development financing. Research methods. Theoretical and methodological basis of the research is the scientific work of domestic and foreign authors on financing of social development with the help of innovative technologies, Internet resources. The study uses a set of general and special scientific methods and approaches, including: monographic - for the literary review of the problem under study; systemic and structural analysis – for interpretation of the essence of fundraising, crowdsourcing, crowdfunding as complex economic categories, logical generalization, systematic method, method of comparisons, graphical methods, which allowed to ensure the conceptual unity of the research. Results of work. Innovative technologies of financing of social development are analyzed, among them: fundraising, crowdsourcing, crowdfunding. The activities of the Na-Starte Kraudfanding Platform, including the involvement of interested parties in this Crowdfunding Platform, are described. It has been established that financing of social projects by providing grants is a significant step forward from the point of view of development of social responsibility of business. It is traced that today in Ukraine there are a number of active grant programs in the field of education, science, medicine, and social security. Conclusions. The listed innovative approaches become relevant in the context of decentralization and community development, in particular, participatory budgeting is the ability of male and female residents of the city to participate in deciding how to distribute a certain part of the budget.
The subject of the research is the BRICS countries activities. The purpose of the work is to assess the initiatives for creating the intergovernmental cooperation format BRICS+ as a factor of economic development of member states, as well as to suggest ways of the interaction mechanism perfection in the fields of trade, investments, multilateral cooperation of development banks, creating international financial centers and payment systems and making use of national currencies in mutual settlements. It is concluded that it is necessary to form favorable conditions for cooperation within new regional associations with the leading role of Russia, India and China. The urgency of the research lies in the fact that the assessment of achievements and prospects of the countries in the spheres of finance, trade and investments presented in the research allows to draw a conclusion about a positive character of the initiative to create the intergovernmental cooperation format BRICS+ and about advisability to expand multilateral interactions through trade agreements with mutual settlements in national currencies of partner countries, through simplification of investment mechanisms and their respective financial provision, primarily in financing major infrastructural projects that have an integration effect. The authors argue for the importance to create a decentralized integration model of interaction for parties via cooperating of a bigger number of participants, which will enable developing countries to meet global challenges and to solve developmental problems effectively. The authors also emphasize that the creation of BRICS+ is a significant initiative that will contribute to fulfilling the tasks formulated in the President of the Russian Federation V. V. Putin Decree “About national goals and strategic objectives of the RF development for the period till 2024” and in his message to the Federal Assembly on 20.02.2019.
The subject of the research is the NEO and Ethereum cryptocurrencies. The relevance of the research is due to the following. First, these cryptocurrencies are expected to play the key role in establishing the future digital economy. Second, cryptocurrency developers are competing to gain leading positions in the development of financial technologies of the digital revolution. Third, the above cryptocurrencies are designed to perform almost identical functions, therefore, to determine the advantages of either of them, a comparative analysis is needed and appropriate conclusions for the Russian economy should be made. The purpose of the paper was to perform a comparative analysis of the Ethereum and NEO cryptocurrencies to identify trends in the digital economy of the future and determine the main targets to enable Russia’s entry into the top five largest world economies. The information sources include articles, books, regulations, departmental documents and conference materials on FinTech, crypto-markets and the digital economy. The research made it possible to reveal specific features of the cryptocurrencies and the corresponding digital platforms that are important for the development of the digital economy of the future. The goal of Ethereum developers is to create a platform for decentralized applications, based on which it will be possible to form a global, easy-to-access, free and reliable Internet of the future. The paper concludes that at present, the NEO has advantages over the Ethereum in terms of both the transaction speed and operational fitness for the development of prospective technologies of the digital economy. However, it may happen that in the near future, the Ethereum developers will be able to improve their blockchain technology so as to ensure the priority of their project in the competition for leadership in the development of the digital economy of the future. Given the contradictions revealed and taking into account the raw materials orientation of the Russian economy, a number of targets are proposed to bring Russia into the five largest world economies.
The main research objective is to identify and analyse significant economic sectors subject to potential disruption from the distributed ledger technology (DLT) within the economy of Latvia. The tasks are 1) to identify sectors subject to disruption from DLT in line with global technological developments, business readiness trends and distributed ledger use cases, 2) to identify sectors generating the most significant output within the economy of Latvia, 3) to analyse interconnections of global trends related to DLT and the areas of potential disruptions to the identified sectors within the economy of Latvia. The research concluded that economic sectors with the most significant output within the economy of Latvia are all subject to disruption from distributed ledger use cases and global DLT trends in the short, medium or long term.
Рассматриваются достоинства и недостатки криптовалюты в мировом масштабе. Анализиру-ются страны, которые пользуются криптовалютой. Показывается стоимость криптовалют в настоя-щее время, и дается соответствующий прогноз
The subject of the research is the modern understanding of money and its interaction with cryptocurrencies and gold as an important aspect of the monetary policy. The purposes of the research were to define the concepts of commercial physical money and symbolic credit money and characterize the modern credit money while treating cryptocurrencies as specific tokens suitable for money transfers and other operations. The paper gives assessment of the blockchain technology as a promising IT product ft for practical use in many sectors of the economy. The role of gold in the modern economy is analyzed. The specific features of the new method of attracting investment — the initial coin offering (ICO) — are considered. It is noted that a new sector has emerged in the modern economy and its financial sphere with elements of self-organization based on IT products. The paper emphasizes the need for legal support of the issue and circulation of cryptocurrencies. It is asserted that nowadays gold has completely lost its monetary function and the reasons for its accumulation by the states are explained. The prospects for the coexistence of modern money and cryptocurrencies are evaluated. It is concluded that the money function of gold ceased in the twentieth century, which is an undisputable fact. The world of physical money is in the past. The current world gold market exists only thanks to the Washington Gold Agreement of 1999 renewable every five years. The world economy is still facing a difficult period of adjusting cryptocurrencies to being used as new tools in the world of credit money and securities.