Subject. The article considers smart contracts as digital financial instruments, their financial and economic essence, which is defined as digital instruments for the settlement of financial relations. Objectives. The aim is to introduce into scientific use such a system concept as digital financial instruments and mechanisms based on the consideration of their economic, legal and financial essence. Methods. The study rests on systems approach that enables to present a smart contract from a technological, economic, legal and financial position as a set of elements with their specific functions defining its complex concept. Results. We reveal the nature of financial relations, arising at the time when bilateral or multilateral transactions are concluded and smart contracts are presented as ways to automatically settle them. Completion of a smart contract is a confirmation of the completion of the transaction and the moment of termination of financial relationship. The article shows the fundamental possibility of using smart contracts in the system of budget relations as a tool for the settlement of a multilateral transaction. Conclusions. Currently, smart contracts are an essential element of a new stage in the development of financial technologies. Specialists in the financial and banking sector recognize the emerging opportunities for their use in the system of financial relations. The paper shows an example of possible use of smart contracts in the settlement of budget relations and in improving the utilization efficiency of budget funds.
Keywords: smart contract, transaction, digital financial instrument, financial relations, efficiency
References:
Kovalev M.M., Golovenchik G.G. Tsifrovaya ekonomika – shans dlya Belarusi: monografiya [The digital economy is a chance for Belarus]. Minsk, BGU Publ., 2018, 327 p.
Dobrolyubova E.I., Yuzhakov V.N., Efremov A.A. et al. Tsifrovoe budushchee gosudarstvennogo upravleniya po rezul'tatam [The digital future of State management of results]. Moscow, Delo, RANEPA Publ., 2019, 114 p.
Kozlov S.D., Slobotchikov O.N., Shatokhin M.V. et al. Tsifra i vlast': tsifrovye tekhnologii v gosudarstvennom upravlenii: kollektivnaya monografiya [Digit and power: Digital technologies in public administration: a collective monograph]. Moscow, IMTs Publ., 2020, 268 p.
Szabo N. Smart Contracts: Building Blocks for Digital Markets. URL: Link
Nikolaevskii V.V., Sherstneva D.S. [The use of smart contracts in letter of credit transactions in the banking activities of the Republic of Belarus: Opportunities and prospects for implementation]. Novaya ekonomika = New Economy, 2019, Special issue, pp. 157–162. URL: Link (In Russ.)
Delmolino K. et al. Step by Step Towards Creating a Safe Smart Contract: Lessons and Insights from a Cryptocurrency Lab. Cryptology ePrint Archive, 2015. URL: Link
Cant B., Khadikar A., Ruiter A. et al. Smart Contracts in Financial Services: Getting from Hype to Reality. Capgemini Consulting, 2017. URL: Link
Zyl' P. [Digital transformation of banking and payment systems]. Банкаўскі веснік, 2017, no. 11, pp. 51–55. URL: Link (In Russ.)
Kirpichnikov R. [On the practice of using blockchain technology in projects for the financial sector of Belarus]. Банкаўскі веснік, 2017, no. 11, pp. 59–61. (In Russ.) URL: Link
Podgornyi A. [The practice of implementing the tasks of the banking system using blockchain technology]. Банкаўскі веснік, 2017, no. 11, pp. 56–58. (In Russ.) URL: Link
Nikolaevskii V.V. [On prepared soil. On the nature of investments and the factors of increasing their efficiency]. Беларуская думка, 2010, no. 9, pp. 24–29. URL: Link (In Russ.)
Nurmukhametov R.K., Stepanov P.D., Novikova T.R. [Blockchain technology and its application in trade finance]. Finansovaya analitika: problemy i resheniya = Financial Analytics: Science and Experience, 2018, vol. 11, no. 2, pp. 179–190. (In Russ.) URL: Link
Prikhod'ko I.V., Chumak I.A., Lyandau Yu.V. [The use of blockchain technologies to modernize the management system of companies in the financial sector and trade finance]. Upravlenie v Rossii: problemy i perspektivy, 2019, no. 2, pp. 52–57. (In Russ.) URL: Link