Digital Financial Inclusion in a Decentralised Financial Environment

Abstract

The relevance of the work is determined by the rapid digital transformation of the financial system, in which both the sphere of financial corporations and the sphere of public finance are equally involved. Financial technologies and digital currencies are one of the key factors shaping the space of inclusion. Despite the prospects and expectations from the introduction of innovations, there are risks associated with changing the role of financial and public institutions. Theoretical approaches related to the development of inclusiveness of financial relations in the field of commercial and public finance are examined. The role of the institutional environment is reconsidered, taking into account the introduction of a digital national currency and decentralised finance. The inclusiveness of the financial system and financial accessibility, participation in financial management can have a positive impact on the growth of the well-being of the population, provided that actions between financial institutions are coordinated and processes are secured. The institutional environment plays a crucial role in achieving economic growth and inclusiveness of the financial system, financial resilience. It diversifies risks and increases responsibility in decision-making. The problems associated with the overlap between the powers of monetary and credit institutions and those of public financial institutions are critically analysed. Drivers for increasing the inclusiveness of financial services are analysed. The directions for further research are the development of methodological approaches to the structure and functions of the financial system, taking into account the increasing centralisation of institutions and the decentralisation of financial transactions.