CRYPTOCURRENCIES AND STABLE COINS: PROSPECTS, CHALLENGES AND OPPORTUNITIES OR THE FINANCIAL SYSTEM OF UKRAINE

Abstract

The article analyses the role of stablecoins and cryptocurrencies in the financial system of Ukraine, their impact on investment markets, as well as specific risks and opportunities associated with their use. The article examines the controversial issues of the essence of cryptocurrency. It is revealed that in the scientific and practical environment cryptocurrencies are considered as digital currencies, electronic means of payment, new forms of electronic money. The current investment environment and the relationship of cryptocurrencies with it are analysed. The use of crypto technology and blockchain technology in economic relations is discussed in economic relations. Cryptocurrency is considered as a method of investment, payment for purchases, use of electronic devices, etc. Particular attention is paid to the role of cryptocurrencies for the financial system, in particular, their regulation, development prospects and impact on the country's financial market. The tendencies and prospects of development of cryptocurrencies are studied. It is found that the cryptocurrency market, due to its young age, is negatively affected by speculators. However, the potential of using cryptocurrency is so obvious that it should be considered as a financial instrument that can solve some of the most pressing problems of the modern financial system. The potential of stable coins to enhance financial stability is assessed. The key risks, such as regulatory uncertainty, financial security and volatility of cryptocurrency assets, are identified. Potential opportunities for using cryptoassets to diversify investment portfolios in Ukraine are considered. It has been determined that cryptocurrencies have a bright future, and that the leading countries in this area will have ample opportunities. It was found that cryptocurrencies are penetrating the the global financial space and the use of digital currencies poses minimal risks to the financial stability and monetary system of the state. The article uses the methods of comparative analysis, logical research, which allowed us to assess the characteristics of cryptocurrencies and mechanisms of their regulation.