DIGITAL ASSETS IN THE STRUCTURE OF INTERNATIONAL RESERVES: ECONOMIC FEASIBILITY AND RISKS
Abstract
This study examines the potential role of cryptocurrencies in national reserves, emphasizing their economic significance and impact on financial stability. The relevance of the topic is determined by the increasing interest of governments and central banks in digital assets as alternative reserve instruments. The research aims to assess the feasibility of integrating cryptocurrencies into sovereign reserves, considering their advantages and associated risks. The study employs a combination of qualitative and quantitative research methods, including comparative analysis, statistical evaluation, and economic modeling. These approaches allow for an objective assessment of cryptocurrency volatility, liquidity, and their ability to serve as a hedge against inflation and monetary instability. The methodology also includes an examination of regulatory frameworks and policy strategies aimed at integrating digital assets into national financial systems. The results demonstrate that while cryptocurrencies offer potential benefits in terms of diversification and financial independence, their high volatility and lack of standardized regulation pose significant challenges to their adoption as full-fledged reserve assets. The study identifies key economic and legal barriers that hinder the widespread use of digital assets in national reserves while highlighting potential mechanisms for mitigating risks. The findings suggest that digital currencies could complement traditional reserves under specific conditions, such as enhanced market maturity, improved risk management, and a clear regulatory environment. The practical significance of the study lies in providing insights for policymakers, central banks, and financial institutions regarding the viability of cryptocurrencies as reserve assets. The research contributes to the ongoing debate on monetary policy innovation, financial sovereignty, and the future of digital assets in global economic systems. The study underscores the need for comprehensive legal frameworks and institutional strategies to facilitate the safe and efficient adoption of cryptocurrencies in national reserves.
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