Digitalization of the monetary-credit system: institutional and regulative aspects

Abstract

Objective: to consider the institutional and regulatory aspects of digitalization, to reveal the institutional features of the digital monetary-credit system, to classify the digitalization models, to describe the phenomenon of the central bank digital currencies, to consider the main trends in the regulation development, and to propose improvements in the monetary systems regulation.Methods: methods of systematization, classification, analysis and synthesis were used in the work.Results: it was shown that the monetary systems digitalization is characterized by signifi changes not only in the organizational and technological aspects, but also in the institutional and regulatory ones. They affect both the functioning features of the monetary system subjects and the methods of conducting operations, as well as the role and tasks of the financial regulators. It is marked that the monetary system long-term institutional development is characterized by the formation of a new digital investment and finance space, which is expressed in the change in the transaction costs structure, the formation of new institutional qualities of the monetary system, the emergence of new types of risks, the transformation of the existing and emergence of new players, due to the active introduction of digital financial technologies. The influence of digital transformation models on changes in the regulatory environment is analyzed, which implies a change in both approaches to regulating the activities of financial service providers and the role of regulators. The main models of monetary systems regulation are also analyzed.Scientific novelty: consists in identifying and systematizing the main institutional aspects of digital currencies development and determining the digital image of the financial and credit sector of the economy. As a result of the study, the main measures aimed at managing the process of monetary systems digitalization are formulated.Practical significance: the main proposals based on the study results can be used by financial regulators in the development of measures for the financial market development and the monetary system digitalization; systematization of regulatory models and digitalization models can be used by higher educational institutions to design the appropriate programs for retraining and advanced training of specialists in the field of finance.