National Interests: Priorities and Security
 

Electronic money and cryptocurrencies: Contradictions and traps

Vol. 14, Iss. 6, JUNE 2018

Received: 14 February 2018

Received in revised form: 5 March 2018

Accepted: 30 March 2018

Available online: 15 June 2018

Subject Heading: ECONOMIC SECURITY

JEL Classification: A13, A14, D03, E03

Pages: 1092–1108

https://doi.org/10.24891/ni.14.6.1092

Butenko E.D. North-Caucasus Federal University, Stavropol, Russian Federation
edbutenko@gmail.com

https://orcid.org/0000-0002-6717-9282

Isakhaev N.R. North-Caucasus Federal University, Stavropol, Russian Federation
isakhaev2014@gmail.com

ORCID id: not available

Importance The article discusses the legal status of cryptocurrencies in Russia and controversial views on cryptocurrencies among financiers from different countries. It is impossible to neglect that Russia lags behind other countries in legalizing cryptocurrencies at the governmental level and regulating them economically, thus affecting the modern digital economy.
Objectives We comprehensively study the issue of conferring the legal status on cryptocurrencies in Russia, development of cryptocurrencies worldwide and evaluate their controversial effect on global economic conditions.
Methods The research employs economic, economic-mathematical, statistical, logic methods for data study, processing and generalization.
Results I delve into the substance of cryptocurrencies, what they are in the process of their creation, and premises for their origination. We survey the market and identify its strengths, weaknesses and causes of instability. The article evaluates how cryptocurrencies are treated at the governmental level in Russia and forecasts what may result from the undefined policy of Russia concerning cryptocurrencies regulation or changes in the situation. We also mention implicit danger of cryptocurrency transactions.
Conclusions and Relevance The article overviews what opportunities cryptocurrencies give, and their prospects. We indicate barriers and drawbacks of certain cryptocurrencies and market as a whole. We demarcate global cryptocurrencies and indicate the role of each of them in the financial market. In the mean time, the article highlights their advantages.

Keywords: cryptocurrency, bitcoin, blockchain, financial market

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