Development Of Cryptocurrencies Research Articles

The Gravity of Cryptocurrency and Prospects in a Post-Pandemic Economy

Today, everything in the world is changing rapidly; businesses that ten years ago may not have existed at all now exist and bring with them a significant income. Change in almost every field has one key feature: it is digitalisation. There are innovations in payment methods as well; the most high-profile issue in recent years in this regard is the emergence of cryptocurrencies. Within a few years of its appearance, it has become popular not even locally but worldwide. The method of data processing and analysis, quantitative and qualitative research methods, statistical-economic analysis methods are mainly used when working on the paper. The research aims to identify the main directions of cryptocurrency development in globalisation threats and challenges. Most cryptocurrencies are built on blockchain technology. The technology of the future is designed to securely store information, expedite transactions, reduce international transaction costs, replace cb-money with e-money and eliminate intermediary circles.

Artificial Intelligence Driven Crypto Currencies

Artificial intelligence-driven cryptocurrencies are cryptocurrencies created by Artificial intelligence using the traditional human cryptocurrency development framework without human intervention. An AI explores the data from each different stream and arriving at the framework which can host these cryptocurrencies following the standards of legality. Cryptography is the encryption of specific data to conceal it and keep it a secret from unwanted third parties. Cryptocurrencies are encrypted currencies with unique keys as developed by developers. Artificial intelligence is an advanced machine programmed to simulate and emulate human intelligence by carrying tasks and reaching conclusions with little or no human intervention. This work considered the use of AI through machine learning and deep learning in the development of cryptocurrencies. The AI machine will set all the parameters and structure of the cryptocurrency. This will include how data is added, removed, and verified on the stream. Blockchain is an open ledger of a cryptocurrency's transactions. It stores files in the system, arranged in blocks, and connected on a list called chains. The article considers how AI-driven cryptocurrency will run using the blockchain network and its impact on it. Artificial intelligence and cryptocurrency are technological very essential technological development currently. The effect of the combination of both technologies would be enormous in the future as both technologies will develop each other remarkably.

IMPACT OF CRYPTOCURRENCY EXCHANGE RATE ON FINANCIAL STOCK EXPOSURE : COMPARISON BETWEEN TWO EMERGING MARKETS

Abstract. This research employs Capital Asset Pricing Model and foreign exchange exposure theory to explain how the value of financial stocks is affected by the home country cryptocurrency. Previous literature proposed that financial stocks were related to the economic or individual financial ratio, but rarely discussed the impact of a cryptocurrency variable in the digital economy. This paper presents specific findings to prove that cryptocurrency development causes structural change in the financial industry, by examining 67,166 panel data observations from China and Taiwan markets. We offer the following important conclusions: 1. Financial stocks in the China market suffer significantly higher impacts from home country cryptocurrency exposure than the Taiwan market. 2. Financial stocks in the China market are more greatly shocked by the CAPM three factors variables than the Taiwan market. 3. There are significant differences between the two financial markets. 4. The dynamics of the adjustment process of cryptocurrency evolution and the monetary system are key solutions for both markets. Keywords: cryptocurrency, Fin-Tech, Exchange rate Exposure. JEL Classification A14, D82, F65, G12, F3 Formulas: 2; fig.: 0; tabl.: 4; bibl. 31.

Hyperinflation, Optimal Currency Scopes, and a Cryptocurrency Alternative to Dollarization

The birth, growth, and development of cryptocurrencies and their underlying technologies, such as blockchain and directed acyclic graphs, have made it possible for nations suffering from hyperinflation to adopt a customized cryptocurrency, with attributes specifically designed so that any nation wishing to transition from hyperinflation to a more stable monetary environment could do so. This paper identifies the sixteen most important attributes that this cryptocurrency would need to be a credible and viable monetary reform alternative. We call the breadth and depth of these attributes a cryptocurrency’s scope and refer to the act of adopting an optimal cryptocurrency, cryptozation. HACC (Hyperinflation Alternative Cryptocurrency) is our name for this specially designed (i.e., “optimal”) cryptocurrency. To succeed, the HACC would need to have near-immediate curative properties and provide user nations with a foundation for long-term growth and financial development. The HACC should be built for use by any nation considering currency reform, even those thousands of miles apart. As more nations adopt it, the HACC’s network would grow, increasing users’ trust and use. The HACC would sharply curtail a central bank’s ability to finance government deficits and bail out failing, nonviable financial institutions, thereby incentivizing them to manage their financial risks more prudently. It would also eliminate or sharply curtail ways in which governments and central banks can earn seigniorage returns.

What is Core and What Future Holds for Blockchain Technologies and Cryptocurrencies: A Bibliometric Analysis

A new era awaits the development of cryptocurrency and blockchain technologies. This study highlights the influential and conceptual aspects of blockchain and cryptocurrency literature with bibliometric analysis. There are 1965 related documents from 2015 and 2020, represent various structures and technologies, cryptocurrencies, and blockchain applications. We have deployed “bibliometrix 3.0”, the r-package, and VOS viewer to analyze key literature aspects. IEEE Access is the core journal for cryptocurrency and blockchain publications. The University of Cagliari, Notreported, and Peking University are key affiliations, and the USA, China, and India are core countries for literary research. H. Wang is the core author with the central theme of security of blockchain technologies. It is a set basis for conceptual aspects, core, and future research streams and themes. The study proposes three research streams: the structure of cryptocurrencies and implications of blockchain technologies, privacy, security management of data and information, and development of optimal information systems. The study further segregates themes into highly centralized and motor themes that are also core themes. Topics related to Consensus protocols, proof of work, distribution ledger technology, blockchain, and cryptocurrency procedures and structure comes under core themes. Highly developed and emerging themes are considered as a stepping stone for future directions. Underlying topics are related to fintech, Islamic finance, valuations, and dynamics of cryptocurrencies.

Криптовалюта як валюта майбутньої фінансової системи

Annotation. Introduction. At the present stage of development of the world is the rapid functioning of all spheres of society. Based on this, today society seeks to be progressive, modern, and therefore the world introduces us to a new type of money that is gaining popularity – cryptocurrency. Currently, humanity is aimed at finding a more progressive way of realization of any financial transactions with minimal risk. Now, the cryptocurrency is in the same city, where was the first paper money during the popularization of the concept of “printing money”. That is why, after a certain period of time cryptocurrency calculations become commonplace. Purpose. The purpose of the study is to consider cryptocurrency as the currency of the future financial system and possible prospects for its future development in Ukraine and the world. Results. The article discusses the theoretical aspects and history of cryptocurrency as currency future financial system. The main types of cryptocurrencies, the process of their creation, which is based on the solution of computers to complex mathematical problems and their entry into the market, are identified. The advantages and disadvantages of using cryptocurrencies are studied, as well as its feature as decentralization, which distinguishes it from other currencies. It is emphasized that in the world, so far, there is no consensus on the further strategy for the development of cryptocurrency in the world, its legalization and legality of use, thus analyzing the legal status of cryptocurrency in different countries and prospects for use. The legal regulation of cryptocurrencies in Ukraine in accordance with the norms of Ukrainian legislation is considered. The peculiarities of the functioning of virtual currencies in Ukraine are highlighted. Conclusions. Cryptocurrency inevitably and actively popularized worldwide in furthering decade. In some areas, such as online gaming business, this kind of currency has found its application in full. In Ukraine, there is everything necessary for legal operations with cryptocurrencies, but it is at the legislative level that there is a problem that prevents the active distribution and use of such currencies. The situation when cryptocurrency is not banned, but also not allowed, is an additional reason for fraudulent schemes. Legal entities and individuals who want or are able to use cryptocurrency is not protected. Similarly, the state can not get taxes from prospective activities. That is why the need for a clear establishment of the concept of “Cryptocurrency” by the law of Ukraine and the creation of mechanisms for regulating any activity with cryptocurrencies at the legislative level, are the priority state tasks at present. Keywords: cryptocurrency; currency; bitcoin; mining; digital currency; the legal status.

From code to market: Network of developers and correlated returns of cryptocurrencies.

"Code is law" is the founding principle of cryptocurrencies. The security, transferability, availability, and other properties of crypto-assets are determined by the code through which they are created. If code is open source, as is customary for cryptocurrencies, this would prevent manipulations and grant transparency to users and traders. However, this approach considers cryptocurrencies as isolated entities, neglecting possible connections between them. Here, we show that 4% of developers contribute to the code of more than one cryptocurrency and that the market reflects these cross-asset dependencies. In particular, we reveal that the first coding event linking two cryptocurrencies through a common developer leads to the synchronization of their returns. Our results identify a clear link between the collaborative development of cryptocurrencies and their market behavior. More broadly, they reveal a so-far overlooked systemic dimension for the transparency of code-based ecosystems that will be of interest for researchers, investors, and regulators.

ICO Tokens as an Alternative Financial Instrument: A Risk Measurement

Purpose: This research aims to check the risk of investing in tokens and cryptocurrencies to show how much investors could lose and determine whether ICO and cryptocurrency return rates are persistent. Design/Methodology/Approach: In the article, ICO tokens and cryptocurrencies were tested using VaR. Then a Shapiro-Wilk test was performed. Due to the appearance of long tails, in the next step, Renyi’s entropy was calculated. Furthermore, R/S analysis was calculated (the Hurst exponent), and on this basis, Weron’s bootstrapping was applied. Findings: Many tokens have a VaR result between 20% and 30% (26.69% on average, median 21.94%). Renyi’s entropy of 24 tokens is more than 0.5 and less than 1. Nineteen tokens have an entropy of more than 1. For cryptocurrencies, the entropy level is between 0.68 and 0.85. In 84% of cases, the Hurst exponent is more than 0.52. The Hurst exponent values of the return rates of five tokens are above the upper bound of Weron’s intervals, and four out of five the Hurst exponent values of cryptocurrencies are above the upper bound of Weron’s intervals. Practical Implications: There are not many articles centering on evaluating risk in investing in ICO tokens. This approach may be of crucial importance for investors and financial markets managers. Originality/Value: The development of cryptocurrencies led to the rise of ICO. Scientific papers focusing on these elements concentrate on the functioning of processes, raising capital, and volatility.

Institutional Features of the Development of Competitive Cryptocurrency

Theaimof the article is to clarify the basics of the digitalization strategy of the competitive businesses and identify features of the institutional environment that ensure the development of cryptocurrency as a new asset (IT product) of the modern economy, analyze the methods of implementing the cryptocurrency business models. Therelevanceof the research paper is determined by the need to develop a competitive Russian cryptocurrency (including the cryptoruble) with the growing private, state and cross-national cryptocurrencies. Thescientific noveltyof the study implies clarifying the informal and formal rules of the institutional environment and related methods ensuring the development of a competitive cryptocurrency. The authors consider the followingmethodsto implement the institutional features of the cryptocurrencies business model development: logic and blockchain algorithm that establish trust and collaboration between cryptocurrency developers; logic and blockchain consensus algorithm ensuring that all the parties of the blockchain network come to a common agreement (consensus); logic and blockchain algorithms that form cryptocurrency transactions and control its turnover by generating blocks of cryptocurrencies, by forming the structure of blocks and transactions of cryptocurrencies, by storing cryptocurrencies’ keys and providing security, by mining (forging) cryptocurrency, etс.Theresultsof the study provide a basis for identifying the institutional features and the corresponding methods providing a competitive cryptocurrency development with a detailed analysis of the blockchain consensus algorithms that ensure the competitiveness of the cryptocurrency. Theconclusionsshow that the most promising are the hybrid consensus algorithms which may include both the logic of two or more known algorithms and the original logic of a new algorithm. The authorsrecommenddefining the logic of the blockchain consensus algorithm as a priority when developing a cryptocurrency to ensure reliability of the transactions in the blockchain network, thus increasing the competitiveness of the cryptocurrency.

Time series analysis of Cryptocurrency returns and volatilities

There is a significant interest in the growth and development of cryptocurrencies, the most notable ones being Bitcoin and Ripple. Global trading in these cryptocurrencies has led to highly speculative and “bubble-like” price movements. Since these cryptocurrencies trade like stocks, provide a feasible alternative to gold and appreciate during uncertain times, it can be hypothesized that their prices are partly determined by the global stock indices, gold prices, and fear gauges such as the VIX and the US Economic Policy Uncertainty Index. In this paper, we test this hypothesis by conducting a time series analysis of returns and volatilities of Bitcoin and of Ripple. We use the Autoregressive-moving-average model with exogenous inputs model (ARMAX), Generalized Autoregressive Conditionally Heteroscedastic (GARCH) model, Vector Autoregression (VAR) model, and Granger causality tests to determine linkages between returns and volatilities of Bitcoin and of Ripple. We find that the Bitcoin crash of 2018 could have been explained using these time series methods. We also find that returns of global stock markets and of gold do not have a causal effect on Bitcoin returns, but we do find returns on Ripple have a causal effect on Bitcoin prices.

Regulations and Behavioral Intention for Use Cryptocurrency in Thailand

This paper identifies the development of cryptocurrency’s regulations and influences of people’s intentions to use cryptocurrency in Thailand. The analysis of behavioral intentions to use cryptocurrency is conducted applying the unified theory of acceptance and use of technology (UTAUT) model. The study used the questionnaire survey, and applied the multiple regression analysis to analyze the influences of Thai people to use cryptocurrencies. This research categorizes the purposes of cryptocurrency into three groups including: the first purpose is investment, as people buy cryptocurrency for wealth increasing; second, it is a means of payment for goods and services; and the third purpose is collecting points and redeeming rewards, as people are able to simply compare cryptocurrency to credit card points and redeem them for rewards. Regarding the findings, social influence is the most important factor that persuades people to use cryptocurrency. The other determinants in the UTAUT model that encourage people intention to use cryptocurrency are facilitating conditions, effort expectancy, and performance expectancy. 

BASIC COMPONENTS OF THE DIGITAL BUSINESS: CRUTOCURRENCY, BLOCKCHAIN, CLOUD TECHNOLOGIES AND INTERNET OF THINGS

The article discusses the main components of digital business, including the digital economy. The article analyzes the current state, prospects for the development and application of cryptocurrencies, blockchain, cloud technologies and the Internet of things. The inevitability of implementation and application of these technologies everywhere during the Fourth Industrial Revolution (Industry 4.0) is noted. Therefore, it is important to study the possibilities of these technologies, the benefits presented by these technologies for the implementation of digital business. The article also discusses cybersecurity issues that arise as a result of the implementation and application of these technologies.

Blockchain, business and the fourth industrial revolution: Whence, whither, wherefore and how?

Blockchain is one the most remarkable technological innovations of the 21st century. The most notable application of blockchain is in the development and operation of cryptocurrencies (e.g. bitcoin, ethereum, among others). Besides the financial services industry, blockchain is also considered in other sectors such as international trade, taxation, supply chain management, business operations and governance. However, blockchain has not been examined comprehensively in all areas of relevant literature. This article conducts a survey of the literature to gain an understanding of the opportunities and issues presented by blockchain in various business functions. The article begins by providing a discussion regarding how the blockchain technology operates. The paper takes a broad focus in its analysis of the prospects of blockchain for various business functions, including banking and the capital markets, corporate governance, international trade, and taxation. The paper demonstrates how organisations and regulators can leverage blockchain to upscale business operations, enhance efficiency and reduce operational costs. The key drawbacks of blockchain that stakeholders need to bear in mind before adopting the technology are also highlighted. The article also reflects on how organisations can tap into blockchain to reap the full potential of the fourth industrial revolution.

ВПЛИВ ПРОТОКОЛІВ ЗАХИСТУ ІНФОРМАЦІЇ НА ФОРМУВАННЯ ВАРТОСТІ КРИПТОВАЛЮТИ ТА ЇЇ КОЛИВАННЯ

The study is aimed at identifying the influence of information security protocols used in cryptocurrencies on the formation of the value of cryptocurrencies and fluctuations in their value. A comparison is made of the value fluctuations against the US dollar. Attention is paid to transaction security algorithms - protocols for protecting information from outside influence. The reasons for the sharp changes in cost are considered. Considering that the phenomenon called "cryptocurrency" is quite new, but at the same time attractive to many, the study of this phenomenon can be useful both from a practical and scientific point of view. Research for practitioners can have the effect of avoiding unpromising areas in cryptocurrency development. Scientific research could answer what explains the existence of this phenomenon. The article notes that the phenomenon is extremely insufficiently discussed in the scientific community (according to the information that we have). The main means of forming an idea about the phenomenon of cryptocurrencies are separate disparate messages on social networks, and forums of people united by this topic. Probably the phenomenon does not fit well with the classical concept of "money", therefore it is perceived ambiguously. It is little defined how the improvement of software (technical) measures affect the popularity of cryptocurrencies, is there a dependence on other factors? This article examines information security protocols as a factor influencing the popularity of cryptocurrencies. Based on the analysis, it is concluded that there is no direct and unambiguous dependence on the improvement of information security protocols for cryptocurrencies and the demand for them. At the same time, the article analyzes other factors and proposes an improved formula for assessing the potential attractiveness of cryptocurrencies.

Blockchain-driven supply chain finance solution for small and medium enterprises

Blockchain has attracted much attention in recent years with the development of cryptocurrency and digital assets. As the underlying technology of cryptocurrency, blockchain has numerous benefits, such as decentralization, collective maintenance, tamper-resistance, traceability, and anonymity. The potential of the block-chain technology (BT) is widely recognized in the financial field. Although some scholars have proposed the combination of blockchain and supply chain finance (SCF), the details of this combination is rarely mentioned. This study first analyzes the coupling between SCF and blockchain technology. Second, the conceptual framework of block-chain-driven SCF platform (BcSCFP) is presented. Third, the operation process of three SCF models on the BcSCFP is proposed. Finally, a case study combined with actual events is conducted. This paper has a positive practical significance in the operation and management of banks and loan enterprises.

Fancy Bitcoin and conventional financial assets: Measuring market integration based on connectedness networks

We investigate the relationship between Bitcoin and conventional financial assets from a perspective on the connectedness of asset networks. We adopt the method of measuring connectedness proposed by Diebold and Yilmaz (2009, 2012, and 2014) in a VAR system to study the dynamic interdependence between returns in Bitcoin, stocks, oil, and gold. We find that the connectedness between bitcoin and conventional assets is weak. The separation of positive and negative returns in the Bitcoin market shows the existence of an asymmetric pattern of the spillover effects between Bitcoin and conventional assets. A rolling window analysis finds that although Bitcoin prices experience a rising link to other financial assets, the magnitude is proven to be moderate. However, connectedness via negative returns is much stronger than via positive ones and exhibits a clearly increasing trend in recent periods. Our results in application are generally robust to other popular cryptocurrencies, such as ETH and Ripple. The findings presented in this paper have important implications for financial market participants, policymakers, and researchers in light of projected increases in the adoption of Bitcoin, as well as the rapid development of cryptocurrency.

Legal regulation of crypto assets in Switzerland

The development of cryptocurrency markets make the investors to seek for most convenient jurisdictions from the perspective of legal regulation. The countries commonly associated with the developed financial legal systems are often fasten attention. One of such financial hubs is Switzerland, which just starts to form the approaches towards creation of legal regime for operations with virtual assets. The subject of this research is the Swiss legal acts in area of securities, licensing, taxes related to regulation of cryptocurrency, as well as reports of the supervisory authorities for Swiss financial market on the matter. The object of this research is the legal framework for regulation of mining activity. The authors examine the rules dedicated ti the questions of licensing of the activity related to operations with different types of tokens. Special attention is given to the question of taxation of the income received from operations with cryptocurrencies. The author’s special contribution consists in comprehensive analysis of foreign sources presented on the three European languages. Having analyzed the legislation of Switzerland, the conclusion is made that similar to many developed countries, Switzerland has not created a complex regulation of operations with cryptocurrencies. At the same time, the normative acts that regulate certain aspects of circulation of crypto assets, such as fund raising in terms of tokens distribution and taxation have been adopted. Regulation of crypto assets often depends on the qualification of different types of tokens, in other words, their regime is consigned to the operations with such assets that are most similar to the corresponding type. The increase of operations with crypto assets will soon inevitably result in creation of a more accurate legal regime

Cryptocurrency unshadowing: European Union legislation innovations and their implications for the domestic market

Problem setting. In modern conditions special consideration is attracted to the global discussion related to the nature and unshadowing of cryptocurrencies. One of the most relevant topics for discussion in the cryptocurrency space is the future legal regulation of this sphere and the necessity of tight control of financial institutions in the cryptocurrency trading. Nowadays on the territory of Ukraine the legal regulation of the cryptocurrency sphere remains unresolved, effective legislative changes have not been adopted yet. However, some consensus has already been reached on the territory of the European Union in the field of the legal regulation of cryptocurrencies reformation, which causes unconditional interest for Ukrainian scientists and businesses. Based on the stated above, the purpose of the article is to analyze the legal regulation of cryptocurrency unshadowing in the European Union in order to identify the most effective mechanisms for its adaptation into the domestic legal framework. Analysis of recent researches and publications. Some aspects of the legal regulation of the domestic legislation reformation in the sphere of cryptocurrencies have become the subject of scientific research of such authors as Burkovskaya A. V., Varnavsky A. V., Vasilevskaya L. Yu., Kravchenko L. M., Kud A. A., Kucheryavenko N. P., Lizunova A. N., Lunkin T. I., Perebinis M. G., Smychok E. N., and others. At the same time, comprehensive studies of the European Union legislation innovations in the sphere of the cryptocurrency unshadowing and the impact of the reformed legal EU regulation on national legislation of Ukraine is not carried out, that fact actualizes the theme of the article and further research and development. Article’s main body. European leaders today have reached the consensus on the issue that innovative technologies, which are the basis of cryptocurrencies, have the potential to increase the efficiency of the financial system and the economy as a whole, both at the national level and across the European Union. At the same time, European experts have not yet formed a unified approach to the nature and legal status of virtual currency. Scientists argue that increasingly virtual (fiat) currencies are used to finance terrorism through transaction anonymity, so the European Union introduces additional monitoring of virtual currencies and transactions, legalized in Directive (EU) 2018/843, which was analyzed in the article. Repeated attempts to legalize digital assets in Ukraine were made by the legislator, however, none of the bills has been adopted and so far the only regulatory act that would resolve the issues of the cryptocurrencies’ legalization and effective measures to unshadow them have not been adopted, which, in turn, requires the intensification of the legislators’ activities, given the rapid development of cryptocurrencies and innovations. Conclusions and prospects for development. The study showed multivariate interpretations of the legal text of the Directive (EU) 2018/843 by member-countries, as well as the presence of a hidden control regime that goes beyond the needs of the document. At the same time, the Directive (EU) 2018/843 is intended to become an effective regulator of legal relations in the sphere of cryptocurrencies and requires its gradual implementation in the legislation of Ukraine in order to fulfill the international legal obligations of our state.

Prospects for the development of digital financial assets

Actuality of the research topic: development and implementation of technological innovations related to digital financial assets will improve the efficiency of banking products and services, and will contribute to the economic growth of any state, providing faster payments, the ability to process and store a large amount of data, the ability to manage identification, attracting resources for investment activities and improving the level of efficiency of all business entities. Problem statement: the formation of scientific and methodological tools for assessing the development of digital financial assets is a relatively new area of world and Belarusian applied science. The problems associated with the system analysis of the development of digital financial assets are currently not sufficiently developed. The purpose of the research: to study the essence, identify global trends and assess the factors of development of digital financial assets in the Republic of Belarus to determine the prospects for its development. Methods of the research: generalization, systematization, classification, SWOT-analysis. The results of the research: the author's definition of the term «digital financial assets» is given and the classification is proposed, trends and factors of development of one of the most innovative digital financial assets – cryptocurrency – are identified, a SWOT-analysis of the development of cryptocurrencies in Belarus is conducted and priority directions of its development are defined. The field of the results application: financial and bankingspheres.

UKRAINIAN CRYPTОCURRENCY IMPLEMENTATION AS A TOOL FOR THE DIGITAL ECONOMY DEVELOPMENT

The article is devoted to a detailed analysis of the Ukrainian cryptocurrency implementation peculiarities and its impact on changes in Additionally, the article gives a brief description of the world economy transformation processes, which are influenced by innovative instruments, primarily cryptocurrencies, blockchain technologies and smart contracts. These changes can fundamentally reshape current economic models and shape the new digital economy. It's proved that Ukraine's economy must be open and flexible to such transformation processes, and therefore the national cryptocurrency development and implementation can prepare the domestic economy and give it considerable leading advantages over other countries. Moreover, currently working Ukrainian cryptocurrency projects have been researched and the main limitations and pitfalls of their functioning have been studied. The main attention is paid to the private UCH project, which is not only based on the blockchain technology like previous projects, but also uses smart contract platforms in three different spheres of Ukraine's economy and has a great potential for launching significant positive changes for Ukraine's Furthermore, the advantages of the national cryptocurrency introduction and its possible functional features are considered in the article. These are: modernization of financial relationships — the national cryptocurrency is expected to improve, simplify and modernize the financial process; decentralization of financial relationships — the cryptocurrency is based on decentralized databases, which can reduce the number of intermediaries and significantly optimize financial transactions; security improvement of financial relationships — new financial technologies are claimed to provide a higher level of protection against errors and fraud; financial transactions transparency and speed increasement — cryptocurrency payments are more faster and more transparent to customers thanks to innovative instruments; the enhancement of currency functionality — the national cryptocurrency is able to extend the current functional characteristics of money; competitive advantages — the modernization of financial relations will allow to stimulate Ukraine's economy development. As a conclusion, the main obstacle of the national cryptocurrency successful implementation is the lack of comprehensive legislative regulation of the crypto market, which would meet the new needs and challenges of the modern