POSSIBILITIES FOR HARMONIZATION OF UKRAINE’S PAYMENT SPACE: INSTITUTIONAL ASPECT

Abstract

The peculiarities and contradictions of cashless economy in the institutional interpretation are studied, the world experience of its development is analyzed in the context of the harmonization of cashless economy creation in Ukraine. In order to achieve the set goals, the current state of Ukraine’s digital financial sector development is characterized, the peculiarities of liquidity circulation under martial law are shown, and on this basis it is concluded that, despite the formation of a state-of-the-art payment space in Ukraine, in crisis conditions, a return to archaic payment mechanisms, capable to support the integrity of the economic system, is possible. The institutional analysis made it possible to draw conclusions that digital financial services are a contradictory phenomenon, which, on the one hand, can partially offset the lack of market institutions and values (especially in certain countries of dependent development), yet on the other hand, it thwarts the formation of a full-fledged public demand for market institutions. Based on the analysis of the world experience of implementing the principles of cashless economy, it is shown that, although the volume of cashless payments is growing, they do not prevail among the priorities of European payment strategies and do not dominate the choice of market entities in both developed and developing countries. The experience of cashless economy formation in developing countries proves that even with the avant-garde development of mobile financial services, conditions may arise for return to the active use of cash payments. Taking into account that in the situation of growing uncertainty of political, economic, and social development trends, cashless payments cannot ensure financial stability, it is important today to use the model of portfolio approach to liquid assets, which assumes a rational proportion between card and cash payments of entities.