National Currency Research Articles

E-money, risk-sharing, and welfare

We develop a micro-founded monetary model to inquire the role of a privately provided e-money instrument for household consumption smoothing and welfare. Different from fiat money, e-money users pay electronic transaction fees, but in turn e-money reduces their spatial separation frictions and enables risk-sharing through remittance transfers. We characterize the profit maximizing e-money transaction fees charged by a monopolist technology provider and the optimality of price regulation. Calibrating the model for the context of Kenya’s e-money product M-Pesa shows that the introduction of M-Pesa through a monopolist increases aggregate welfare by 1.0%, while regulating e-money prices and fully eliminating the monopoly power of the technology provider raises the aggregate welfare only by 0.1% beyond what is achieved through the monopolist.

Shanghai cooperation organization economic and transport cooperation at the present stage

The article analyzes the development of foreign trade in the countries of the Shanghai Cooperation Organization (SCO) for the period 2000–2022 in the commodity segment. The predominant and dominant role of China both in the international market and in trade with the SCO states is shown. It is concluded that, along with the growth of mutual trade in the SCO space, the imbalance of trade flows in the future may contribute to the development of negative phenomena, especially in the case of a transition in this trade to settlements in national currencies. The article shows that the SCO countries, especially China and Russia, have intensified and strengthened their presence in the innovation sphere and the global digital segment. The interaction of the SCO countries in innovative and digital directions, according to the author, makes it possible in the future to increase the SCO’s digital leadership in the global economic space and implement digital solutions in other SCO countries, which are less actively developing and using digital tools today. The Shanghai Cooperation Organization has been developing various areas of bilateral and multilateral cooperation between partners for more than 20 years. One of these areas is the transport sector. The importance of this area is growing both in national economies, for example, in China, and in cooperation. The article describes new modern directions of cooperation between the SCO countries in the transport sector. This strengthens the integration processes in the interstate association in the field of economics, transport and improvisation.

A novel central bank digital currency framework design for offline and foreign transactions based on blockchain

Purpose Fiat money production necessitates physical commodities, increasing costs and its flow is challenging to monitor, making it vulnerable to criminal exploitation. Cryptocurrencies offer decentralized solutions, but their decentralization has led to illegal activities. Current cross-border transactions face high costs, resource intensity and lack of instant currency transfers. Offline transactions are essential in unreliable networks. Design/methodology/approach Here, the authors proposed the methodology to perform offline transactions based on card, quick response (QR) code and a foreign transaction framework with universal identification (UID) to perform cross-border transactions using blockchain-dependent central bank digital currencies (CBDCs). Implications for the financial system are also analyzed. Findings The proposed CBDC framework reduces illegal transactions, corruption and the cost of producing fiat money; eases overseas transactions; and eventually increases international tourism, trade and business between countries. It also reduces the processing fees. Offline framework found useful for performing retail-level transactions. Research limitations/implications The research methodology may face limitations due to diplomatic relations, political instability, sanctions and the need for robust offline transaction infrastructure. Practical implications The proposed CBDC framework simplifies debt and insurance management, tax collection, international trade, tourism and global stock market participation. However, implementing CBDCs in low-income countries presents challenges like extensive training, infrastructure and user acceptance issues. Social implications The adoption of CBDCs can enhance financial stability by reducing corruption and illegal transactions through improved traceability and monitoring, thereby curbing activities like terrorism. Originality/value Common framework for foreign transactions is based on the UID, and offline transaction framework is based on the sender’s QR code for multiple user applications.

Lebanon’s Economic Development Risk: Global Factors and Local Realities of the Shadow Economy Amid Financial Crisis

The shadow economy’s size and impact remain subjects of extensive research and debate, holding significant implications for economic policy and social welfare. In Lebanon, the ongoing crisis since 2019 has exacerbated severe economic challenges, with the national currency’s collapse, bank crisis, and foreign reserve deficits. The World Bank reports Lebanon’s financial deficit surpassed $72 billion, three times the GDP in 2021. Despite a drastic decline in GDP, imports have surged to near-pre-crisis levels, exacerbating economic woes and indicating a constant outflow of foreign currencies. Considering such contracting facts, this paper aims to investigate global factors influencing the shadow economy and discern their manifestations in Lebanon during financial crises. Our methodology involves a comprehensive literature review, alongside a case study approach specific to Lebanon. This dual-method strategy ensures a detailed understanding of the shadow economy’s impact and the development of actionable insights for policy and economic reform. Through this approach, we seek to contribute to a nuanced understanding of Lebanon’s economic landscape and provide valuable guidance for policy decisions aimed at reducing corruption, promoting transparency, and fostering a robust formal economy. The increase in the shadow economy raises the formal economy risk, as resources and activities diverted to informal channels hinder the growth and stability of the official economic sector. Although focusing on Lebanon, this analysis deepens the comprehension of the economic landscape and provides valuable guidance for policymakers, researchers, and stakeholders, aiming to address the root causes of informal economic activities and promote sustainable growth in developing countries in general.

Crowdfunding Real Estate Investments Using Ethereum Smart Contracts and Tokenization

This research paper explores the Ethereum blockchain technology in revolutionizing real estate investment through crowdfunding. Traditional real estate markets face challenges in liquidity, accessibility, and transparency, which this study addresses by proposing a blockchain-based solution. The research examines the implementation of a system utilizing Ethereum smart contracts, Initial Coin Offerings (ICOs), and ERC20 tokens to enable fractional property ownership and automate investment processes. The study employs a technical stack comprising Vue.js for the front-end, Solidity for smart contract development, and the Truffle framework for deployment. Ethereum serves as the blockchain platform, with Ganache-CLI used for local testing. The system incorporates MetaMask for wallet management and Stripe for fiat currency processing, demonstrating a comprehensive approach to integrating blockchain technology with existing financial systems. Through detailed implementation and analysis, this paper provides insights into the practical applications and challenges of blockchain in real estate crowdfunding. The findings suggest that while this technology offers promising solutions to longstanding issues in real estate investment, considerations around scalability, regulatory compliance, and user adoption remain critical [4]. Keywords: Blockchain, Ethereum, Smart Contracts, Crowdfunding Real Estate Tokenization, ERC-20 Tokens, Initial Coin Offering (ICO), Fractional Ownership, Liquidity, Transparency, Ganache, Remix IDE, MetaMask, Solidity, Truffle Framework.

Characteristics and Development Trends of the Digital Assets Segment in Modern Practice in Russia and Abroad

The paper aims to identify the key trends and risks associated with the introduction and spread of digital assets, including the digital ruble, in the Russian financial market. This study is timely due to the rapid growth of market capitalization for digital financial assets based on blockchain technology in both international and Russian financial markets, as more and more countries prepare to launch their own national digital currencies. However, there is a dearth of information in scientific and practical literature regarding the prospects, challenges, and risks associated with introducing digital financial assets, including the digital ruble, into Russia. The data for the analysis included official statistics and analytics from the Bank ofRussia and central banks of countries considering introducing digital national currencies. It also included the content of key Russian legislative acts related to digital currencies, as well as examples of the implementation of digital financial assets from Russian and international practices. The main research methods employed were a systematic approach, analysis of fundamental theoretical propositions in the literature, and case analysis. The paper discusses the existing types of digital financial assets, both internationally and in Russia, and assesses the demand for these assets in the Russian capital market, as well as their potential for lending to small and medium-sized businesses. It also considers the most common problems associated with the development of this segment and possible solutions, including regulatory measures. The second part ofthe paper explores the prospects and challenges of introducing a digital ruble into the Russian financial system. It assesses the potential impact of this new currency on the stability of domestic banks and monetary conditions in Russia, including inflation. Future research could focus on quantifying a wide range of risks associated with the introduction of digital financial assets, as well as modelling supply and demand for these assets.

STRATEGIC PLANNING USING THE TOTAL COST OF OWNERSHIP MODEL

In a highly competitive global scenario, companies seek new ways to optimize production and implement continuous improvement mechanisms to reduce costs. An essential tool in this context is the Total Cost of Ownership model, applied to the acquisition processes of inputs to determine the costs involved and compare the economic viability between domestic and international suppliers. Given the unstable economic scenario and high exchange rate fluctuations, the possibility of nationalizing production is evaluated. The case study method is adopted, characterized as applied and exploratory research, with the objective of generating knowledge for practical application and solving specific problems. This method combines a literature review with exploratory field analysis. The studied company faces a loss of profitability due to rising import costs, reduced demand, and the loss of purchasing power of the national currency against international suppliers. The increase in costs resulting from exchange rate fluctuations necessitates the search for new supply options, primarily in the domestic market, where exchange rate influence is lower. Thus, the nationalization of inputs becomes crucial in business decisions to minimize costs and maintain competitiveness. The results indicate that the nationalization of production using the Total Cost of Ownership model is viable. This model considers all costs involved in the acquisition of inputs, unlike the traditional acquisition model, which focuses exclusively on the unit price.

Bitcoin as a National Currency: A Case Study for the Czech Republic

In an era of changing financial landscapes, the position of cryptocurrencies like Bitcoin as possible national currencies is worth investigating. This study investigates Bitcoin's adherence to currency criteria and its consequences for GDP development in a certain country. The mining industry plays a significant role in the GDP of many countries. The extraction of raw materials such as metals, minerals, and fossil fuels is essential for producing a wide range of goods and services. This generates jobs and tax revenues and supports economic growth. Understanding these processes is critical, given the ongoing debate about Bitcoin's place in modern economies. This research looks into Bitcoin's usefulness as a currency and its possible influence on a certain country's GDP. The results show that Bitcoin fits the requirements for money, acting as a means of exchange and a store of value, with features including mobility, divisibility, commensurability, and fungibility. When examining its influence on GDP, empirical data indicate that, while currency appreciation may provide the illusion of stronger GDP growth when denominated in foreign currency, it damages growth domestically. According to a neural network study, Bitcoin's large impact on GDP renders it unsuitable for use as a national currency in the Czech Republic. Despite matching currency criteria, Bitcoin's adoption confronts problems such as volatility, a lack of central authority, and its worldwide nature, which limit its usefulness in promoting national economic growth. This analysis emphasizes country selection and length restrictions, finding that Bitcoin's existing position as an investment instrument restricts its viability as a national currency.

Оптимизация расчетов по экспортным операциям в национальной валюте в современных геополитических условиях

The financial security of enterprises in modern geopolitical conditions is negatively affected by political and financial sanctions imposed on the Russian Federation. In modern conditions of a rather aggressive exchange rate policy of the Bank of Russia, which ensures the containment of the national currency exchange rate and has a direct impact on the receipt of negative exchange rate differences in the process of export operations of domestic enterprises, it is necessary to improve settlement measures when conducting foreign economic activity. The purpose of this study was to develop operations to optimize settlements for export transactions in national currency. The subject of the study is the economic relations that arise in the process of settlements for expert transactions when carrying out foreign economic activity in modern geopolitical conditions. As a result of the study, scenarios for reducing the role of the dollar in international payments and reserves are reflected, and changes in the field of exchange control are studied. An assessment of the financial results of the enterprise for individual contracts was made due to the reflection of negative differences caused by fluctuations in the exchange rate of international currencies and the strengthening of the ruble. The effect of paying for exports in rubles is analyzed using the example of large existing enterprise contracts. A payment scheme for the enterprise’s exported products was developed and proposed by switching to payments in national currency. It was proved that the transition of settlements with foreign buyers in rubles reduces the risk of fluctuations in the exchange rate of international currencies and contributes to the strengthening of the ruble exchange rate while increasing the economic benefits of the enterprise. The results of the study can be applied to the practical activities of not only an individual enterprise but also to the activities of other enterprises exporting products.

De-Dollarization

De-dollarization is a “significant reduction in the use of dollars in world trade and financial transactions, [as well as] decreasing national, institutional and corporate demand” for United States dollars. (Goldman Sachs 2023; Li Yuefen 2024) De-dollarization has been a persistent theme since the collapse of the Bretton Woods Gold System in 1971 and the rising US national debt. (Cohen 2015) Efforts to minimise reliance upon the US dollar, such as the 1976 introduction of the IMF Special Drawing Right and the 2002 introduction of the Euro, failed to displace dollar dominance. (Eichengreen 2011) The Euro is a currency without a Nation State and the IMF SDR is not a currency used to invoice and settle international trade and financial transactions. However, the decision of the United States to “weaponize” the use of the dollar and to impose restrictions on global payment systems have impelled countries to construct an alternative to the dollar system. (Sen 2019) This article first examines the adverse effects of using the US dollar as a global reserve currency. Second, the article examines the application of economic sanctions, specifically against the Russian Federation, to illustrate the probable development of an alternative reserve and invoice currency to co-exist with the dollar. Third, the article posits the conditions necessary to establish a viable alternative to the dollar and then examines efforts to promote alternatives to global payment systems such as SWIFT, and to build a new reserve currency. The article concludes: [1] the imposition of economic sanctions compels target countries to create alternative financial systems and settle international trade in national currencies; [2] establishing a new reserve currency out of whole cloth is a formidable task and lacks a recent historical counterpart, [3] the renminbi is the likely currency to rival, not displace, the US dollar.

Перспективы и угрозы внедрения цифровых валют

The purpose of the article is to study the prerequisites, prospects, and threats of introducing the central bank digital currency (CBDC) as the third form of national currency. The article examines the concept of digital currency as an integral element of the new financial system and a tool capable of solving its problems by reducing the chain of interaction between the sender of transactions and the recipient, which will make payments safer, faster, transparent, and cheaper. Within the framework of the conducted research, the following results were obtained: 1) the differences between digital currencies, cryptocurrencies, and fiat money were identified and clearly outlined; 2) the experience of foreign countries in the development of the central bank’s digital currency was studied, and the main fundamental differences in the technologies of wholesale and retail digital currencies were described, as well as the possibilities of their implementation; 3) the architecture of the digital ruble was analyzed and the selected two-level retail model was evaluated, on the basis of which the domestic central bank’s digital currency technology was implemented; problem areas of the selected architecture were identified and defined as the vector of its development; 4) prospects for the development and introduction of supranational and international digital currencies were identified, and a model of a single digital currency, “BRICS Pay,” was proposed. The study showed that the economic efficiency of the digital ruble for business as a technology capable of decreasing costs by reducing the number of financial intermediaries in the transaction chain and lowering fees is indisputable, and the digital ruble itself is a logical stage in the evolution of payment and financial systems. The economic feasibility of the digital ruble’s introduction for the country’s economy is more fundamental and consists in the reduction of the level of the shadow sector, the autonomy and independence of the financial system, simplifying cross-border settlements, and overcoming sanctions restrictions.

Semantic analysis of images on banknotes of the Republic of Kazakhstan

The research article is devoted to the study of images semantic meanings placed on banknotes of the Republic of Kazakhstan of the 1993–2011series. The main purpose of the article is to conduct a reconstructive analysis of the semantic values of Kazakhstan’s national currency as an implication of the historical path of the Ka-zakh people. The analysis of images content on money notes of the Republic of Kazakhstan was carried out in a combination of semantic, cultural and historical methods. The connotations between communicative and significant information of images and Kazakh culture, also systematization of historical-style groups of the national currency were marked. The research theoretical basis was the works on history, semantics, semiotics, linguacultural and cultural science. Special attention is paid to various archival documents on the history of banknotes in the Republic of Kazakhstan, reflecting the value relationship to national history and culture.

Modeling Asymmetric Effects of Exchange Rate Fluctuations on Agricultural Trade Balance: Evidence from Iran and Iraq

The exchange rate plays a crucial role in foreign trade and has asymmetric effects. This study examines the asymmetric effects of exchange rate volatility on the trade balance in the agricultural sector between Iran and Iraq, using the non-linear ARDL model from 1998 to 2020. The results show that Iraq's GDP and oil price fluctuations positively affect the trade balance. In contrast, Iran's GDP and the U.S. economic sanctions against Iran have negative and significant effects on the trade balance of Iran with Iraq in the agriculture sector. The results do not confirm the existence of the J-curve effect in the trade relations between Iran and Iraq, because an increase in the bilateral exchange rate, in both the long-run and short-run, improves the trade balance of Iran with Iraq in the agriculture sector. Furthermore, the positive and negative fluctuations of the bilateral exchange rate have different effects on the trade balance. While the devaluation of the national currency does not cause a downward trend in the short run, the exchange rate policy can improve the trade balance from the beginning.

STATISTICAL METHODS FOR MANAGING RISKS IN PLANNING FOREIGN ECONOMIC AND LOGISTICS ACTIVITIES FOR SUSTAINABLE DEVELOPMENT OF THE ENTERPRISE

The article examines the topical issue of risk management in foreign economic and logistics activities, which is closely related to the enterprise’s chosen strategy and ensures its sustainable development. The study considers the issue of developing a hedging strategy using statistical methods since adequate forecasting allows predicting the impact of external environment factors on the exchange rate, which will allow the enterprise to timely predict and mitigate the risks in foreign economic and logistics activities. The authors have used general scientific and special methods of systemic and structural analysis to clarify the directions of sustainable performance and risk management tools; formulate the goals and steps in choosing a strategy of hedging; compare the methods of foreign exchange rate risk hedging and perform correlation and regression analysis of factors that impact exchange rate under crisis conditions. The purpose of the paper is to study the specifics of ensuring the sustainable performance of an enterprise using statistical methods in risk management for planning foreign economic and logistics activities. The authors have proposed a definition of a hedging strategy based on the concepts, approaches, and ideas of asset and/or investment management with the aim of reducing loss through hedging instruments, whose feasibility can be substantiated by statistical methods. It has been found that the formation and successful implementation of a hedging strategy requires the use of statistical analysis in order to timely predict fluctuations in exchange rates. The findings of the research were tested based on the performance of PrJSC "Linde Gas Ukraine". In the strategy of hedging the exchange rate risks, it has been proposed to simultaneously open a foreign currency deposit and take a loan in the national currency to replenish the company's working capital. The perspective of further research is the implementation of the proposed hedging strategy and assessment of its effectiveness.

Perceptions of Cryptocurrencies and Modern Money before and after the COVID-19 Pandemic in Poland and Germany

Research background: Despite the fact that the issue of private, decentralized digital money (cryptocurrencies) is already quite extensively described in the literature dedicated to the financial system, especially its periphery, there is a deficiency in terms of research on the opinions of participants in the financial system, based on trust in money and its widespread acceptance. International comparative studies are lacking, particularly those conducted before and after the COVID-19 virus pandemic. The pandemic showed that people had significantly changed their willingness to use different forms of money. Being isolated at home and avoiding direct contact with others, people started to use digital money more frequently. Purpose of the article: In response to the identified research gap, this study reports research results on the perception of cryptocurrencies by young financial market participants. It attempts to provide answers to the following research questions: (1) Has the COVID-19 pandemic and the lockdown of economies caused changes at the international level in perceptions and attitudes toward the traditional monetary system and cryptocurrencies? (2) Has the COVID-19 pandemic changed perceptions of cryptocurrencies as a potential alternative to current fiat money? Methods: To evaluate respondents’ opinions, a survey in the form of a questionnaire was conducted. The respondent groups in 2019/2020 were N = 171 (Germany = 143 and Poland = 128), while in 2021, N = 157 (Germany = 95 and Poland = 62). For analytical purposes, statistical analysis using the Z ratio test was used to capture the characteristics of the response distributions and the relationships between them. These two moments in time allowed us to determine whether there were significant changes between opinions before and after COVID-19. Findings & value added: The study’s results showed that while there are significant differences in perceptions of the traditional monetary system and cryptocurrencies due to a variety of factors, the COVID-19 pandemic and the shutdown of economies did not cause statistically significant differences in this regard.

Әртүрлі оқиғалардың криптовалюта құнына әсерін талдау

The relevance of the research topic is due to the fact that many crypto investors are attracted by the high liquidity of cryptocurrencies, low transaction costs and ease of transactions via the Internet. In contrast from Fiat currencies, corporate stocks, and bonds, cryptocurrencies do not have an underlying value. demand therefore market cost to a greater extent depends on how wellknown and popular this cryptocurrency is. Also, the price of cryptocurrencies is influenced by market sentiment, namely the thoughts, feelings and emotions of investors regarding the asset. With the help of traditional asset valuation models, it is impossible to qualitatively explain the latest changes in the price of cryptocurrencies. However, some financial models point to that cryptocurrency is currently overvalued. Apparently, the hypothesis of financial instability is better than any of the verified economic theories suitable to explain recent changesin prices of cryptoassets. The theory suggests that because the cryptocurrency market is moving against the macroeconomic fundamentals of the economy, emotions are a major factor. determining demand on a given market. In this article, the authors examined the influence of behavioral financial factors on investment decisions in the cryptocurrency market. Multiple regression analysis was used to examine this effect. The purpose of the article is to study the development of cryptocurrency in Kazakhstan and assess the impact of events on the value of cryptocurrency. Based on this goal, the authors put forward the following tasks: to analyze and evaluate the use of cryptocurrencies in the modern economy; explore the features of cryptocurrency pricing.

Сбалансированность интересов участников распределительных отношений в контексте обеспечения региональной бюджетной безопасности

This study aims to clarify the concept of budget resilience and substantiate an approach for selecting indicators of regional budget resilience. A content analysis of scientific sources in the field of budget resilience was conducted, and current approaches to defining the concept of budget resilience were classified. The author’s interpretation of the concept is presented, emphasizing the need to select indicators that assess regional budget resilience by considering the interests of public funding recipients. Within this framework, groups of recipients—regional authorities, economic entities, and the population—are identified, and their interests are determined. A system of indicators is proposed to ensure budget resilience in the region, reflecting the level of interest satisfaction among these groups. A comparative analysis of the balance of recipients’ interests based on the results of budget policy and the budget process in the Russian Arctic regions was carried out, and trends in their economic interactions under conditions of global instability were analyzed. The study found vulnerabilities in the budget resilience system, manifested in the infringement of recipients’ interests. Changes in financial market conditions and resource prices led to a decrease in financial results for companies and a reduction in regional output redistributed through budgets, resulting in welfare loss for the regions and their populations. To address the situation, it is necessary to intensify investment activities and business development in the regions and optimize the fiscal regulation system, which will ultimately contribute to the growth of budget and household incomes. Changes in these indicators should be monitored not only in national currency but also in dollar terms to assess the recipients’ financial well-being on an international scale. Future research will focus on selecting specific indicators and their threshold values for assessing budget resilience in the Russian Arctic regions.

Статистическая оценка влияния антироссийских санкций на динамику развития российской промышленности

The relevance of the study is due to the unprecedented number of economic sanctions imposed on the Russian economy since 2014. In this paper we will assess the impact of economic sanctions on the development of key sectors of the Russian industry: machine-building complex, food industry and extraction of fuel and energy minerals. The dynamics of the development of the analyzed branches of the Russian industry in the 13-year time interval was multidirectional. High utilization of production capacities and support of national production by the weak national currency were counteracted by negative factors associated with the coronavirus pandemic and sectoral sanctions against the Russian economy. The study verifies the hypothesis of the negative impact of economic sanctions on the development of Russian industry using economic and mathematical modeling methods. The results of the study showed the existence of a relationship between the number of anti-Russian sanctions and the dynamics of development of two branches of the Russian industry: food and machine-building. For the mining industry the correlation coefficient was insignificant.

Objects of Currency Legal Relationships in the context of Countering Restrictive Measures Imposed by Unfriendly States

The paper analyzes the process of expanding the list of objects of currency legal relations, including related to the policy pursued by the Russian Federation to counter restrictive measures imposed by the United States and unfriendly states and international organizations that have joined them. The author analyzes the category of «currency values». The author concludes that the category of currency values appeared due to legal and technical reasons: the use of the term «currency values» makes it possible to make the text of the document more concise, eliminating unnecessary enumeration of objects of currency legal relations. The author highlights that the current concept of attributing objects of currency legal relations to currency values leads to a hidden depreciation of the national currency of the Russian Federation. It is emphasized that the recognition of digital financial assets and hybrid digital rights based on them as objects of currency legal relations blurs the line between these digital rights and digital currency. At the same time, within the framework of currency relations, digital financial assets should be considered as an analogue of securities rather than as a currency. The reason why digital financial assets are recognized as an object of currency legal relations, but digital currencies are not, is that the latter do not have a person bound by them. The prognosis is made that due to the existing request and subject to the adoption of the necessary regulatory framework, digital currencies may become the object of currency legal relations and be used to a limited extent for cross-border settlements.

მიგრაციის სოციალურ-ეკონომიკური ასპექტები საქართველოში

Migration is a topical issue in Georgia, as it is in many other countries. There are various causes that contribute to migration, including changes in the economy and personal choices. It should be mentioned that according to the research, in the context of Georgia's recent history, financial transfers from immigrants may be able to support the nation's economic growth. Remittances have the potential to stimulate individual sectors of the economy, contribute to the stability of national currencies, improve household living standards. To some extent, the state can direct the remittance resource towards social economic development by implementing appropriate policies.