Driving Forces for the Development of Digital Currencies of Central Banks in the System of Monetary Relations

Abstract

The changes that have emerged in the sphere of monetary circulation over the past decades on the eve of the introduction and development of financial technologies, contributed to the spread of innovations in the financial market. The idea of creating digital currencies of central banks is being discussed at the level of the financial community and makes it relevant to study this issue. The purpose of this study is to identify the main problems of changes and transformations taking place in the sphere of monetary circulation over the past decades, through the creation and introduction of digital peer-to-peer currencies into circulation. The article suggests and considers a model for creating and constructing an environment for the circulation of digital currencies by means of minimizing risks by using the advantages of the developed technology. The study assessed the key distinctive features between the pyramid requirements building system and digital peer-to-peer currencies. The main aspects supporting the use of stable digital currencies and their assets as one of the tools have been formulated. The forms of design features of CBDC (Central Bank Digital Currency) creation are projected, their advantages are formulated. The study showed that the implementation and circulation of CBDC requires the creation of a stable, secure and innovative infrastructure that has the ability to connect, authenticate and support users on a massive scale. During the transition to digital currencies of the central bank, the risks may be higher than planned, this is influenced by unstable macroeconomic and structural policies, including the reliability of the regulatory framework, which should be flexible enough and adapted to recognize financial risks created by new types of financial intermediaries, and deal with them.