+7 495 989 9610, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»

JOURNALS

  

FOR AUTHORS

  

SUBSCRIBE

    
Finance and Credit
 

Financial instrument of the new economy or a pyramid scheme: The issues of cryptocurrency security

Vol. 27, Iss. 6, JUNE 2021

Received: 12 April 2021

Received in revised form: 26 April 2021

Accepted: 17 May 2021

Available online: 29 June 2021

Subject Heading: Financial system

JEL Classification: G10, G14

Pages: 1395–1415

https://doi.org/10.24891/fc.27.6.1395

Lelya G. PASHTOVA Financial University under Government of Russian Federation, Moscow, Russian Federation
palelya@yandex.ru

https://orcid.org/0000-0002-5618-5978

Vyacheslav A. OSEEV Financial University under Government of Russian Federation, Moscow, Russian Federation
vaoseev@gmail.com

https://orcid.org/0000-0002-6480-0168

Dmitrii A. KLEMENOV Financial University under Government of Russian Federation, Moscow, Russian Federation
dklemenof@gmail.com

https://orcid.org/0000-0003-4916-1617

Subject. This article discusses cryptocurrency as a new financial instrument in the global financial system.
Objectives. The article aims to consider the current situation of cryptocurrencies and justify the advantages and risks of their use.
Methods. For the study of cryptocurrency, Blockchain technology, and Bitcoin and the US dollar relationship, we used a comprehensive approach based on systems, functional and structural, and correlation analyses.
Results. Based on the analysis of the trends in the cryptocurrency market formation, the problematic aspects of their legal regulation, the investment aspect, and the changes in the cryptocurrency exchange rate against the US dollar, the article identifies some shortcomings of this financial instrument from the point of view of supervisory bodies.
Conclusions. Cryptocurrency really has significant prospects to become a valuable financial tool in the world economy, despite the rather critical problems of their regulation. Cryptocurrency can be a substitute for the US dollar in international settlements due to its advantages in the form of transparency and decentralization, especially given the fact that in 2019–2020, the governments of a number of countries (EU, Russia) began to actively develop legislation to regulate this area.

Keywords: cryptocurrency, digital financial assets, Bitcoin, investment, innovative financial instruments

References:

  1. Mikhailov A.Yu. [Cryptocurrency Market Development: Hurst Method]. Finansy: teoriya i praktika = Finance: Theory and Practice, 2020, vol. 24, no. 3, pp. 81–91. (In Russ.) URL: Link
  2. Wrzaczek S., Kort P.M. Anticipation in Innovative Investment under Oligopolistic Competition. Automatica, 2012, vol. 48, iss. 11, pp. 2812–2823. URL: Link
  3. Shifflett S., Vigna P. Some Traders Are Talking Up Cryptocurrencies, Then Dumping Them, Costing Others Millions. URL: Link
  4. Levashenko A., Ermokhin I., Koval' A. [Prospects of legal regulation of crypto economy and ICO in Russia and other countries]. Ekonomicheskaya politika = Economic Policy, 2019, vol. 14, no. 5, pp. 80–99. URL: Link (In Russ.)
  5. Ahelegbey D.F., Giudici P., Mojtahedi F. Tail Risk Measurement in Crypto-Asset Markets. International Review of Financial Analysis, 2021, vol. 73, 101604. URL: Link
  6. Kamps J., Kleinberg B. To the Moon: Defining and Detecting Cryptocurrency Pump-and-Dumps. Crime Science, 2018, vol. 7, article 18. URL: Link
  7. Baumöhl E. Are Cryptocurrencies Connected to Forex? A Quantile Cross-Spectral Approach. Finance Research Letters, 2019, vol. 29, pp. 363–372. URL: Link
  8. Tokolov A.V. [The prospects of tax regulation of cryptocurrency in Russia and abroad in the conditions of digital economy]. Vestnik Moskovskogo universiteta MVD Rossii = Vestnik of Moscow University of the Ministry of Internal Affairs of Russia, 2018, no. 6, pp. 208–210. (In Russ.) URL: Link
  9. Stefanova N.A., Osipov A.A. [Bitcoin as an investment: The benefits and risks]. Karel'skii nauchnyi zhurnal = Karelian Scientific Journal, 2018, vol. 7, no. 1, pp. 181–184. URL: Link (In Russ.)
  10. Kraaijeveld O., De Smedt J. The Predictive Power of Public Twitter Sentiment for Forecasting Cryptocurrency Prices. Journal of International Financial Markets, Institutions and Money, 2020, vol. 65, 101188. URL: Link
  11. Bleher J., Dimpfl T. Today I Got a Million, Tomorrow, I Don't Know: On the Predictability of Cryptocurrencies by Means of Google Search Volume. International Review of Financial Analysis, 2019, vol. 63, pp. 147–159. URL: Link
  12. Hutto C.J., Gilbert E. VADER: A Parsimonious Rule-based Model for Sentiment Analysis of Social Media Text. Proceedings of the Eighth International AAAI Conference on Weblogs and Social Media, 2014, vol. 8, no. 1. URL: Link
  13. Wang G.-J., Ma X., Wu H. Are Stablecoins Truly Diversifiers, Hedges, or Safe Havens Against Traditional Cryptocurrencies as Their Name Suggests? Research in International Business and Finance, 2020, vol. 54, 101225. URL: Link
  14. Leng J., Ruan G., Jiang P. et al. Blockchain-empowered Sustainable Manufacturing and Product Lifecycle Management in Industry 4.0: A Survey. Renewable and Sustainable Energy Reviews, 2020, vol. 132, 110112. URL: Link
  15. Caporale G.M., Kang W.-Y., Spagnolo F., Spagnolo N. Cyber-attacks, Spillovers and Contagion in the Cryptocurrency Markets. Journal of International Financial Markets, Institutions and Money, 2021, 101298. URL: Link
  16. Corbet S., Cumming D.J., Lucey B.M. et al. The Destabilizing Effects of Cryptocurrency Cybercriminality. Economics Letters, 2020, vol. 191, 108741. URL: Link
  17. Maslennikov V.V., Fedotova M.A., Sorokin A.N. [New financial technologies change our world]. Vestnik Finansovogo universiteta = Finance: Theory and Practice, 2017, vol. 21, no. 2, pp. 6–11. URL: Link (In Russ.)
  18. Chaplygin V.G., Del'tsova T.A. [Correlation-regression analysis of Bitcoin characteristics]. Vestnik Baltiiskogo federal'nogo universiteta im. I. Kanta. Seriya: Gumanitarnye i obshchestvennye nauki = IKBFU's Vestnik. Series: The Humanities and Social Science, 2018, no. 2, pp. 70–79. URL: Link (In Russ.)
  19. Krylov G.O., Lisitsyn A.Yu., Polyakov L.I. [Comparative analysis of volatility of cryptocurrencies and fiat money]. Finansy: teoriya i praktika = Finance: Theory and Practice, 2018, vol. 22, no. 2, pp. 66–89. (In Russ.) URL: Link
  20. Yanishin K.R., Gatsenko I.O., Mast A.I. [Stablecoins as a tool to eliminate cryptocurrency volatility]. Mezhdunarodnyi zhurnal gumanitarnykh i estestvennykh nauk = International Journal of Humanities and Natural Sciences, 2020, no. 4-3, pp. 179–183. (In Russ.) URL: Link

View all articles of issue

 

ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 27, Iss. 7
July 2021

Archive