Digital currencies in the world financial system: advantages, disadvantages, risks, regulation
DOI:
https://doi.org/10.31558/2307-2318.2020.4.3Keywords:
cryptocurrency; digital currency; international financial system; Blockchain; electronic moneyAbstract
The paper analyzes the role of digital currencies in the global financial system, the peculiarities of their use. The paper pays attention to the characteristics of the historical preconditions for the emergence of electronic payments and, as a consequence, digital currencies. The paper analyzes the features of the emergence and functioning of major global cryptocurrencies - Bitcoin, Ripple and Ethereum. The advantages of cryptocurrencies, the authors of the study include unlimited opportunities for transactions, no borders, transaction speed. Among the disadvantages of cryptocurrencies is the lack of a proper level of knowledge, which leads to the spread of fraud. The paper presents the volume and share of bitcoin trade in different markets during the period from January 2013 to January 2018. The results of the study allow us to conclude that the modern cryptocurrency market, despite the fact that the evolution of electronic money is in its infancy, and cash is still the most important form of payment for retail transactions, is highly competitive and fragmented.
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