IS CBDC THE REMEDY TO REVOLUTIONIZE COUNTRIES BANKING & FINANCIAL SYSTEMS (WITH PRIMERELY OBECT TO UKRAINE)?
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Published:
Jun 20, 2024
Abstract
In our days that’s hard to find countries in the world with central banks that not undertake energetic actions toward developing own digital currencies (CBDC – Central Bank Digital Currency). Those efforts are caring out in a similar way with advancing traditional centralized money system set under legal tender by a government. In a parallel mode we observe rapid demand growth for use of decentralized digital currencies, represented by different classes financial assets such as coins, tokens, e-money. The question arises: does CBDC transform and replace any traditional monetary system, assuming that new arrangement ought to satisfy practical needs for all contestants of complicate ecosystem structure starting from households/private investors, businesses, government?
How to Cite
Danko, V. (2024). IS CBDC THE REMEDY TO REVOLUTIONIZE COUNTRIES BANKING & FINANCIAL SYSTEMS (WITH PRIMERELY OBECT TO UKRAINE)?. Baltic Journal of Legal and Social Sciences, 138-150. https://doi.org/10.30525/2592-8813-2024-spec-15
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Keywords
Central Bank Digital Currency, CBDC architecture, decentralized digital currencies, centralized money system, coins, stable coins, tokens, e-money, legal tender, NBU, wholesale CBDCs, Stellar Development Foundation (SDF), distributed ledger technology (DLT), CBDC ecosystem, nonbank financial institution (NBFI), an application programming interface (API)
References
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2. Finnish Banks to Run Avant Electronic Purse (1995). Retrieved from: https://www.yumpu.com/en/document/read/4311655/finnish-banks-to-run-avant-electronic-purse-smart-card-news
3. Atlantic Council (2023). Central Bank Digital Currency Trader. Retrieved from: https://www.atlanticcouncil.org/cbdctracker/
4. Efi Pylarinou (2023). Purpose – Bound Money to Digitize Voucher Programs for Social Impact. Medium. Retrieved from: https://efipm.medium.com/purpose-bound-money-to-digitize-voucher-programs-for-social-impact-d18e58011e97
5. Triple A (2023). Digital Currency Ownership Data. Retrieved from: https://triple-a.io/crypto-ownership-data/
6. Worldometer (2023). Ukraine Population. Retrieved from: https://www.worldometers.info/world-population/ukraine-population/
7. Chainalysis Report (2022). The 2022 Global Crypto Adoption Index: Emerging Markets Lead in Grassroots Adoption, China Remains Active Despite Ban, and Crypto Fundamentals Appear Healthy. Retrieved from: https://blog.chainalysis.com/reports/2022-global-crypto-adoption-index/
8. National Bank of Ukraine (2020). Nearly Quarter of Ukraine’s GDP, or UAH 846 Billion, Is in Shadow – Study of Shadow Economy Finds. Retrieved from: https://bank.gov.ua/en/news/all/doslidjennya-tinovoyi-ekonomiki-v-ukrayini--mayje-chvert-vvp--abo-846-mlrd-griven--perebuvaye-v-tini
9. Trading Economics (2023). Ukrainian Hryvnia, Retrieved from: https://tradingeconomics.com/ukraine/currency
10. World Data Info (2023). Inflation rates in Ukraine. Retrieved form: https://www.worlddata.info/europe/ukraine/inflation-rates.php
11. National Bank of Ukraine (2023). Law of Ukraine Currency and Currency Operation. Retrieved from: https://bank.gov.ua/admin_uploads/law/Law_Currency_eng.pdf?v=4
12. National Bank of Ukraine (2023). Strategy for Easing FX Restrictions, Transitioning to Greater Flexibility of the Exchange Rate, and Returning to Inflation Targeting. Retrieved from: https://bank.gov.ua/en/markets/liberalization
13. National Bank of Ukraine (2023). Про затвердження Положення про випуск електронних грошей та здійснення платіжних операцій з ними. Retrieved from: https://zakon.rada.gov.ua/laws/show/v0210500-22#Text
14. National Bank of Ukraine (2023). Cashless Payments. Retrieved from: https://bank.gov.ua/en/payments/nocash
15. Gayatri Ailani, Aaakrit, Dheeraj Vaidya (2021). What is Central Bank Digital Currence (CBDC)? WallStreetMojo. Retrieved from: https://www.wallstreetmojo.com/central-bank-digital-currency/#types
16. National Bank of Ukraine (2023). About e-hryvnia, the digital currency of the National Bank of Ukraine. Retrieved from: https://bank.gov.ua/en/payments/e-hryvnia
17. Kentaro Iwamoto (2022). Cambodia's digital currency reaches nearly half the population. Nikkei Asia. Retrieved from: https://asia.nikkei.com/Business/Finance/Cambodia-s-digital-currency-reaches-nearly-half-the-population
18. Dr Ousmène Jacques Mandeng (2020). Retail CBDC Architecture. Conference – Central Bank Digital Currencies: New Opportunities for Payments. National Bank of Ukraine. Retrieved from: https://bank.gov.ua/admin_uploads/article/1.CBDC%20NBU%20ACCENTURE.pdf
19. Ousmène Jacques Mandeng (2022). The (R)evolution of money III CBDC is here, careful design needed now. Accenture. Retrieved from: https://www.accenture.com/in-en/insights/blockchain/evolution-money
20. Hong Kong Monetary Authority (2022). A Prototype for Two-tier Central Bank Digital Currency (CBDC). BIS Innovation Hub. Retrieved from: https://www.bis.org/publ/othp57.pdf
21. Bank of Canada, group of central banks (2021). Central bank digital currencies: system design and interoperability. BIS Innovation Hub. Retrieved from: https://www.bis.org/publ/othp42_system_design.pdf
22. Bank of England (2023). Building API API prototypes for retail CBDC ecosystem innovation. BIS Innovation Hub. Retrieved from: https://www.bis.org/publ/othp69.pdf
23. Amazon Web Services AWS (2021). Central bank digital currency (part 1): Objectives and architectural considerations Research. Retrieved from: https://pages.awscloud.com/rs/112-TZM-766/images/AWSPS_cbdc_1_Feb-2021.pdf
24. Roman Hartinger (2020). E-Hryvnia Report. National Bank of Ukraine. Payment Systems and Innovations Department. Retrieved from: https://bank.gov.ua/admin_uploads/article/Hartinger_EHryvnia_pr_2020-02-21.pdf