Cryptocurrency: present-day challenges and prospects of development
Journal Title: Economic Annals-XXI - Year 2019, Vol 176, Issue 3
Abstract
Due to digitalisation processes in economic, civic and social areas, we observe acceleration in certain processes, in particular the saturation of the financial market with modern digital means, including cryptocurrencies, which has led to the choice of the subject for the present article. This article is aimed at the analysis and systematisation of the notion of cryptocurrency on the basis of selected digital and electronic money characteristics, including the determination of its place in the system of market values along with the classification of approaches to the regulation of cryptocurrency flows in European countries. Also this paper provides an individual interpretation of Burniske’s formula to calculate the cryptocurrency monetary supply at global financial markets. The research stipulates the use of morphological and synthesis, structural and functional, and comparative legal types of analyses, including generalisation. The paper provides an analysis of the category and concept framework of digital currencies, in particular cryptocurrencies from the standpoint of tools used to develop the crypto infrastructure. The electronic currency as a means of value has certain advantages, if compared to the fiat currency, yet a lack of proper legal mechanism leads to collapse in its functioning in the financial market. It is also established that cryptocurrencies have high volatility resulting in the limitation of its functioning in certain states (Ecuador, Iceland, India, China, etc). The authors reveal characteristics and legal content of Burniske’s formula which justifies the proportional relation between the product of currency flow velocity and gross monetary supply and the product of monetary supply price and circulation volume. National legislation must identify cryptocurrency as a financial means - an alternative for the unstable banking system and extension of economic rights of individuals and legal entities.
Authors and Affiliations
Andrii Vozniuk, Anna Tytko
Keywords
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- EP ID EP644965
- DOI 10.21003/ea.V176-05
- Views 196
- Downloads 0
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