{"id":18907,"date":"2024-04-04T10:09:34","date_gmt":"2024-04-04T07:09:34","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=18907"},"modified":"2024-04-04T10:09:34","modified_gmt":"2024-04-04T07:09:34","slug":"digital-currencies-of-central-banks","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/digital-currencies-of-central-banks\/","title":{"rendered":"Bodnar O., Krasnonozhenko V., Nesterchuk T., Tishechkina K. Digital Currencies of Central Banks: New Opportunities and Risks"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]<\/p>\n\n\n\n
JEL Classification<\/strong>: E42; \u041552; E58
\n<\/span><\/td>\n		DOI<\/b>: https:\/\/doi.org\/10.31521\/modecon.V43(2024)-02<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

[\/vc_column_text][vc_column_text]Bodnar<\/strong> Olena, <\/strong>PhD (Economics), Associate Professor of the Department of Finance, Banking and Insurance, Mykolayiv National Agrarian University, Mykolayiv, Ukraine<\/p>\n

ORCID ID:<\/strong> 0000-0002-0152-4290<\/a>
\ne-mail: <\/strong>bodnaroa@mnau.edu.ua<\/a><\/p>\n

Krasnonozhenko Vitaliia,<\/strong> Applicant of Higher Education, Accounting and Finan\u0441e Faculty, Mykolayiv National Agrarian University, Ukraine<\/p>\n

ORCID ID:<\/strong> 0000-0002-7595-6539<\/a>
\ne-mail: <\/strong>kvo20082004@gmail.com<\/a><\/p>\n

Nesterchuk Tetyana,<\/strong> Applicant of Higher Education, Accounting and Finan\u0441e Faculty, Mykolayiv National Agrarian University, Ukraine<\/p>\n

ORCID ID:<\/strong> 0009-0001-6140-774X<\/a>
\ne-mail: <\/strong>tanjanesterthuk@gmail.com<\/a><\/p>\n

Tishechkina Kateryna,<\/strong> PhD in Philology, Associate professor, Acting Head of the Department of Foreign Languages, Mykolayiv National Agrarian University, Mykolaiv, Ukraine<\/p>\n

ORCID ID:<\/strong> 0000-0003-1814-0813<\/a>
\ne-mail: <\/strong>tishechkinakateryna@gmail.com<\/a><\/p>\n

<\/h2>\n

Digital Currencies of Central Banks: New Opportunities and Risks<\/strong><\/h2>\n

\u00a0\u00a0<\/strong><\/p>\n

Abstract. Introduction<\/strong>. Central bank digital currencies are becoming an increasingly important tool for modernizing the financial system in the digital economy. The introduction of these currencies can have both positive and negative effects on the credit and banking system of the country and the global financial system in general. However, the lack of a sufficient number of studies on this topic makes it difficult to understand the consequences of the introduction of digital currencies and to develop effective strategies for their use, which may lead to an underestimation of the risks and possible negative consequences of the introduction of these currencies, as well as to the loss of opportunities to use their potential, modernize the financial system and support economic growth.<\/p>\n

To solve these problems, it is necessary to conduct a detailed study of the impact of central bank digital currencies on the financial system of a given country and the economy as a whole, taking into account various aspects of their implementation and possible consequences for different sectors. Such research will help to develop effective strategies for the use of these currencies and minimize possible risks for the financial system.<\/p>\n

Purpose.<\/strong> The purpose of the article is to identify the key success factors and challenges that arise in the process of introducing central bank digital currencies; to determine the characteristics of projects of cross-border use of digital currencies and their impact on international financial relations and settlement systems; and to develop guidelines for countries planning to introduce central bank digital currencies.<\/p>\n

Results.<\/strong> The study includes the study of international experience with the introduction of central bank digital currencies and their impact on international financial relations and settlement systems. The main advantages and disadvantages of the introduction of central bank digital currencies are revealed on the example of specific countries. The authors also analyze projects of cross-border use of digital currencies and give recommendations on the optimal use of these currencies to ensure the stability and efficiency of the financial system. The conclusions of the article can be useful for government bodies, banking institutions and researchers interested in the development of digital currencies in the world of modern finance.<\/p>\n

Conclusions.<\/strong> In conclusion, it is worth noting that the key success factors in the process of introducing digital currencies by central banks are the stability of the economy, public trust and proper technological infrastructure. However, there are challenges, including regulatory heterogeneity and potential cybersecurity threats, which need to be carefully addressed. In addition, projects for cross-border use of digital currencies can have a positive impact on international financial relations and settlement systems, simplifying international payments and reducing their costs. For countries to effectively implement CBDC, it is necessary to consider factors such as financial stability, cyber risks, privacy, confidentiality, and others.<\/p>\n

Keywords:<\/strong> digital currency; central bank; credit and banking system; CBDC; international information; electronic money.<\/p>\n

References:<\/strong><\/p>\n

    \n
  1. Pihotska, O.M., Popovych, N.P. (2022). Electronic currency: international experience and prospects for implementation in Ukraine. Scientific Notes of the Lviv University of Business and Law. Economic series. Legal series. 32, 304\u2013313. https:\/\/doi.org\/10.5281\/zenodo.7198023.<\/li>\n
  2. Khutorna, M., Zaporozhets, S., & Tkachenko, Yu. (2021, August 18). Central banks\u2019 digital currencies: world trends and prospects in Ukraine [Conference presentation abstract] Social Economics, 61, 123-134. https:\/\/doi.org\/10.26565\/2524-2547-2021-61-12.<\/li>\n
  3. Myekhova, O.M., Burkovska, A.V. (2019, October 3-4). Forms of money and their evolution [Conference presentation abstract] Youth, science, business. Mykolayiv National Agrarian University, Mykolaiv, Ukraine. 85-89. http:\/\/dspace.mnau.edu.ua\/jspui\/handle\/123456789\/7491.<\/li>\n
  4. Lazorenko, A. (2022, October 20). What is CBDC and is it useful to introduce a digital currency in Ukraine during the war. Forbes.ua. https:\/\/forbes.ua\/innovations\/shcho-take-cbdc-ta-chi-korisno-zaprovadzhuvati-tsifru-valyutu-v-ukraini-pid-chas-viyni-20102022-9180.<\/li>\n
  5. Chepkova, T. (2023, June 28). 11 countries already have digital currency. Who else will launch a CBDC soon? BeInCrypto. https:\/\/ru.beincrypto.com\/v-11-stranah-uzhe-est-czifrovaya-valyuta-kto-eshhe-zapustit-cbdc-v-blizhajshee-vremya\/<\/li>\n
  6. Poskrobok, Ju. (2020, October 21). Sand Dollar: One of the world’s first central bank digital currencies was created in the Bahamas. Channel 24. https:\/\/financy.24tv.ua\/ru\/pesochnyj-dollar-bagamah-vveli-pervuju-cifrovuju-novosti-mira_n1440054\u0438.<\/li>\n
  7. Kodolova, V. (2024, January 25). Jamaica upgrades point-of-sale terminals for CBDC payments. Bits Media. https:\/\/bits.media\/yamayka-moderniziruet-kassovye-terminaly-dlya-platezhey-v-cbdc\/<\/li>\n
  8. Kodolova, V. (2023, October 10). Central Bank of Nigeria: Digital naira does not threaten the country’s financial security. Bits Media. https:\/\/bits.media\/tsb-nigerii-tsifrovaya-nayra-ne-ugrozhaet-finansovoy-bezopasnosti-strany\/<\/li>\n
  9. Kachura, M. (2024, January 24). How the first national cryptocurrency of Venezuela was born, lived and died. Buy Crypto with Credit Card & Debit Card Instantly. https:\/\/itez.com\/ru\/blog\/coins\/how-petro-died.<\/li>\n
  10. PaySpace Magazine (2022, February 18). CBDC: Which countries are using, launching or testing their own digital currencies. https:\/\/psmcom\/uk\/review\/kakie-strany-gotovyat-cbdc.html<\/li>\n
  11. Ripple (2023). The Digital Evolution of money. https:\/\/ripple.com\/reports\/CBDC-Digital-Evolution.pdf.<\/li>\n
  12. Bank for International Settlements (2021, December 08). Project Jura: cross-border settlement using wholesale CBDC. https:\/\/www.bis.org\/about\/bisih\/topics\/cbdc\/jura.htm.<\/li>\n
  13. Bank for International Settlements (2022, March 22). Project Dunbar – International settlements using multi-CBDCs. URL: https:\/\/www.bis.org\/publ\/othp47.htm.<\/li>\n
  14. Bank for International Settlements (2023, September 12). Project Sela demonstrates that retail CBDC can support access, cyber security and competition, while retaining cash features. https:\/\/www.bis.org\/about\/bisih\/topics\/cbdc\/sela.htm<\/li>\n
  15. Bank for International Settlements (2023, March 06). Project Icebreaker concludes experiment for a new architecture for cross-border retail CBDCs. https:\/\/www.bis.org\/about\/bisih\/topics\/cbdc\/icebreaker.htm.<\/li>\n
  16. Bank for International Settlements (2023, September 28). Project Mariana: BIS and central banks of France, Singapore and Switzerland successfully test cross-border wholesale CBDCs. https:\/\/www.bis.org\/about\/bisih\/topics\/cbdc\/mariana.htm.<\/li>\n
  17. Bank for International Settlements (2024, March 06). Project Aurum 2.0: Improving privacy for retail CBDC payment. https:\/\/www.bis.org\/about\/bisih\/topics\/cbdc\/aurum2_0.htm .<\/li>\n
  18. Bank for International Settlements (2023, October 26). Project Polaris: secure and resilient CBDC systems, offline and online. https:\/\/www.bis.org\/about\/bisih\/topics\/cbdc\/polaris.htm.<\/li>\n
  19. Bank for International Settlements (2023, October 31). Project mBridge: experimenting with a multi-CBDC platform for cross-border payments. https:\/\/www.bis.org\/about\/bisih\/topics\/cbdc\/mcbdc_bridge.htm.<\/li>\n<\/ol>\n

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    Bodnar O., Krasnonozhenko V., Nesterchuk T., Tishechkina K. (2024). Digital Currencies of Central Banks: New Opportunities and Risks. Modern Economics, 43(2024), 16-23. DOI: https:\/\/doi.org\/10.31521\/modecon.V43(2024)-02.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
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    [vc_row][vc_column][vc_column_text] JEL Classification: E42; \u041552; E58 DOI: https:\/\/doi.org\/10.31521\/modecon.V43(2024)-02 [\/vc_column_text][vc_column_text]Bodnar Olena, PhD (Economics), Associate Professor of the Department of Finance, Banking and Insurance, Mykolayiv National Agrarian University, Mykolayiv, Ukraine ORCID ID: 0000-0002-0152-4290 e-mail: bodnaroa@mnau.edu.ua Krasnonozhenko Vitaliia, Applicant of Higher Education, Accounting and Finan\u0441e Faculty, Mykolayiv National Agrarian University, Ukraine ORCID ID: 0000-0002-7595-6539 e-mail: kvo20082004@gmail.com Nesterchuk Tetyana,
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