POTENTIAL FOR THE USE OF CRYPTOCURRENCIES IN THE RECONSTRUCTION OF UKRAINE'S ECONOMY: CHALLENGES AND OPPORTUNITIES

Abstract

Cryptocurrencies are now one of the key innovative instruments in the financial market, gaining particular importance amid economic crisis and military conflict. While cryptocurrencies were previously viewed primarily as an investment tool, they now play a crucial role in defense funding, humanitarian aid, and economic stability in Ukraine. The aim of this article is to analyze the potential of cryptocurrencies as a tool for ensuring economic stability and supporting the reconstruction of Ukraine’s economy. The study utilizes general scientific and specialized methods: analysis and synthesis, induction and deduction, comparative analysis, classification method, and graphical method. The article identifies the main advantages and challenges of using cryptocurrencies within Ukraine’s financial system, examines their role during the crisis, and outlines prospects for further development. The historical stages of cryptocurrency development, both in Ukraine and globally, were also analyzed. This allowed for the identification of key trends and significant events that have shaped the current state of the cryptocurrency market. Such an approach helped to determine the specific features of applying this innovative financial instrument in the context of Ukrainian realities, providing a more comprehensive justification for the proposed strategies. The study also examined the ways cryptocurrencies are utilized by the Russian Federation to circumvent international sanctions, highlighting the critical importance of effective regulation in this domain. Additionally, it analyzed Ukraine's experience in leveraging cryptocurrencies during the war, particularly for financing defense, providing humanitarian aid, and supporting volunteer initiatives. These aspects underscore the significant potential of cryptocurrencies as a tool for ensuring economic resilience and supporting national interests in times of crisis. Particular attention is given to identifying the prospects for utilizing cryptocurrencies in Ukraine's reconstruction strategy. Considering the modern global experience of their application, cryptocurrencies can become a crucial element in attracting investments, supporting financial inclusion, and ensuring transparency in fund management. Analyzing these prospects is essential for shaping effective solutions as part of the comprehensive measures for Ukraine's economic recovery.