Regulation of the circulation of digital money: development prospects

This article examines the prospects for regulating digital money against the background of its rapid spread in Russia in recent years. Digital money is currently replacing cash circulation, but along with its advantages, it has a number of disadvantages. The purpose of the presented article is to assess the prospects for the development of the circulation of digital money and the possibilities of its regulation. The analysis of understanding the essence of virtual currency or digital money is carried out. The classification of digital money and electronic payment systems is considered. The ratio of the concepts of non-cash, electronic and digital money, their similarities and differences, and the main features are analyzed. The properties of cryptocurrencies are investigated, it is concluded that, in addition to a number of useful functions, their widespread use as a means of payment may pose some threat to the financial stability of the state. The directions of development of monetary relations in the context of the introduction of new innovative methods of regulating national monetary circulation are considered. The process of forming an attitude towards the free circulation of cryptocurrencies and their regulation in the power and legislative spheres is investigated. It is concluded that it is necessary to prohibit the circulation of cryptocurrency as a means of payment. The necessity of introducing official digital currencies issued by national central banks into the system of monetary circulation has been substantiated. The experience of organizing pilot projects of national digital currencies in developed countries is generalized, the prospects for the circulation of national digital currencies are determined. The article also discusses the prospects for the development of digital financial technologies associated with the release of digital financial assets and the spread of digital money within a new model of an innovative economy.

digitalization, digital economy, digital money, payment systems, regulation