Actual problems of innovative economy and law

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Central bank digital currency: prospects and risks

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УДК: 330.34

DOI: https://doi.org/10.36887/2524-0455-2025-2-19

Batiuk Larisa
Phd in Economics, Associate Professor of the Department of Global Economy
State Biotechnological University
https://orcid.org/0000-0003-3597-860Х
Baban Tetiana
Phd in Economics, Associate Professor of the Department of Global Economy
State Biotechnological University
https://orcid.org/0000-0001-8252-901X

The article examines changes in monetary circulation caused by the development of financial technologies; it examines the essence, advantages and disadvantages of central bank digital currencies. Analyzes the features of the development of the infrastructure of central bank digital currencies. Provides alternative positions of various monetary authorities on the market for cryptocurrencies and other forms of quasi-money. Examine the prospects and risks of the mechanism of functioning of central bank digital currencies from the standpoint of their influence on the ratio of profitability of the financial and real sectors of the economy in the context of globalization. This justifies the thesis that the development of financial technologies is rapidly changing the money market and its infrastructure, reducing the demand for central bank cash in favor of the growth of non-cash electronic payments. It is noted that the main tool for determining the value of money in the context of large-scale quantitative and credit easing programs in many countries has become the interest rate on central bank reserves, which, with an increase in the money supply, led to a further decrease in interest rates in the world economy. Under these circumstances, the replacement of interest rate calculation methods aimed at revitalizing the secondary interbank lending market implies an increasing monopolization of the financial market. The position that in modern conditions the target may not be the indicative money market rate, but the interest rate of the central bank’s digital currency, which is supposedly capable of increasing investment activity, increasing the lending activity of commercial banks, and increasing the level of real incomes of the population and private business, is refuted. The basic criteria by which digital currencies of central banks can be classified are determined. Some effects of a single state monetary policy that may occur when using digital currencies of central banks are considered. The conclusion is made that in modern conditions, non-commodity security of monetary signs prevail, which most often relies on the military and police power of the state. Under these circumstances, economic entities are forced to use monetary signs that do not have internal value or do not have sufficient commodity security.

Keywords: central bank, monetary policy, cryptocurrency, central bank digital currency.

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The article was received 10.03.2025

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Batiuk L. , Baban T. 10.03.2025. Central bank digital currency: prospects and risks. Actual problems of innovative economy and law. 2025. №2. 84-89 pp. https://doi.org/10.36887/2524-0455-2025-2-19

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Batiuk L. , Baban T. Central bank digital currency: prospects and risks. Actual problems of innovative economy and law. 10.03.2025. https://doi.org/10.36887/2524-0455-2025-2-19