EXECUTION OF MONEY FUNCTIONS BY CRYPTOCURRENCIES

Abstract

The article analyzes the relationship between money and virtual assets, the ability of the latter to perform the functions of money. The study focuses on the coverage of functions performed by cryptocurrencies. The author's vision of the set of functions is formed and the essence of this list is revealed. The world experience of using cryptocurrency systems is studied. The factors of possible increase of the role of cryptocurrency in settlements and payments, its use as an analogue of money are outlined. In addition, the problems and risks of the functioning of virtual assets in economic activity are highlighted. The specifics of digital money creation in the modern financial system and its use in economic activity are studied. The purpose of the article is to determine the functions performed by cryptocurrency systems, their grouping, and study their implementation in Ukraine and the world, as well as to study the features of its operation to further determine the impact on the global financial system. The following methods were used in the study: the method of analogy (primarily, the opposition of money and cryptocurrency functions), synthesis, induction and deduction, system-structural method. The study presents such functions of cryptocurrencies as settlement, savings, speculative function, investment, means of circulation, world money, information, shadow money. Of the functions of fiat money, cryptocurrency can fully perform only the function of a measure of value; the performance of other functions is currently only partial. The practical value of the article is that the author's list of functions of cryptocurrency systems was formed on the basis of its opposition to the functions of money; identified the possibility of using virtual assets as an analogue of fiat money, and identified problems and threats that hinder this process. The impact of cryptocurrency systems on the global financial system is currently insignificant, the total volume of cryptocurrency transactions in the world is comparable to transactions in fiat money within one country. However, the emergence of cryptocurrencies has affected certain participants in economic processes, including commercial and central banks. The volume of transactions and the number of enterprises accepting cryptocurrencies is increasing every year.