TY - JOUR AU - O. Kushnir AU - V. Iakovlev AU - S. Chimyshenko PY - 2020/11/10 Y2 - 2024/03/29 TI - Theoretical aspects of cryptocurrency circulation in the context of money functions JF - Herald of Kyiv Institute of Business and Technology JA - Herald VL - 45 IS - 3 SE - DO - 10.37203/10.37203/kibit.2020.45.07 UR - https://herald.kibit.edu.ua/index.php/visnyk/article/view/110 AB - The article presents the advantages and disadvantages of using  crypto currencies in the period of aggravation of crisis phenomena in the economy of Ukraine, when households and businesses tend to avoid saving money in national currency, preferring other, less liquid assets. The relevance of the topic is due to the widespread use of  crypto currencies as a means of accumulation and savings, and as a means of payment by the majority of the population and business. The historical preconditions for the development of payment systems, which was the impetus for the emergence of cryptocurrency, are considered. The researches of foreign and domestic scientists on the development of payment systems and the use of  crypto currencies are analyzed. The world experience of legal and market regulation of cryptocurrency circulation process is considered. These are the main advantages of cryptocurrencies: confidentiality and, consequently, security of data owners; independence from the state; absence of territorial and time restrictions in transactions; low maintenance cost, etc. As a result, cryptocurrency is gaining more and more popularity among the population, the infrastructure of its sale through terminals and electronic platforms is being formed, cryptocurrency is widely represented on the stock market, the network of commercial and production structures expanding is possible. Prospects for further functioning of  crypto currencies in modern economic systems are indicated. These shortcomings of cryptocurrencies, such as the lack of their institutionalization: first, it is legal - the circulation of  crypto currencies is not regulated by any laws in many countries, and secondly - the market - there are no rules for cryptocurrencies. In addition, a significant disadvantage of cryptocurrency is the risk of its accumulation given the variability of its liquidity. Substantiated provisions on the rationality of recognition of cryptocurrency as a financial asset. ER -