ELECTRONIC NATIONAL CURRENCIES: CHALLENGES AND PROSPECTS
Abstract
The article explores the essence of Central Bank Digital Currencies (CBDC), analyzes their differences from fiat money, as well as their advantages and disadvantages. It examines projects for the introduction of CBDC in various countries (Great Britain, China, USA). Particular attention is paid to the projects for the introduction of CBDC in Ukraine (e-hryvnia).
In Ukraine, experiments with digital hryvnia are currently ongoing (for example, the government projects “National Cashback” and “Winter eSupport” during 2024-2025). Although there are no convincing reasons to claim that e-hryvnia technologies are used in these projects, it is worth emphasizing the potential of digital currency, because the projects can complement each other: “National Cashback” can be implemented using “E-hryvnia”, which will simplify the refund process and increase the transparency of transactions. For the successful implementation of both projects, a developed payment infrastructure (ATMs, POS terminals and mobile applications) is necessary, since e-hryvnia technology involves the use of electronic wallets, not payment cards. At the same time, projects should fundamentally be implemented on e-hryvnia technology, when the government determines the directions for using the accrued money. This programmability is the main difference between the electronic hryvnia and fiat. The projects "National Cashback" and "E-hryvnia" have great potential for the development of the financial sector of Ukraine and improving the well-being of citizens. However, for their successful implementation, it is necessary to solve a number of problems and coordinate with other economic policies. Therefore, there is a broad prospect for the introduction of a digital hryvnia, which will increase the convenience and security of using money, reduce transaction costs and the prerequisites for the production of counterfeit money and fraudulent actions. Of course, all of the above will become possible only thanks to the high level of cyber security of the updated monetary system of Ukraine.
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