Optimization of the structure of modern money circulation in the context of the role of cash payments

Abstract

Introduction. The dynamics of the economic development of any country largely depends on the state and efficiency of money circulation, the functioning of which could not be untouched by modern trends of virtualization of the economic environment and digitalization of interaction between market entities. Under such circumstances, determining the role and place of cash payments in the general system of monetary relations, the development of which is significantly influenced by digital technologies, should be considered as an urgent task in the view of maintaining the stability of monetary circulation as one of the important tasks of the state regulatory policy.Purpose. Research of the conditions of organization and ensuring the stability of modern money circulation, taking into account the role and place of cash in it. Proving the impossibility of completely replacing cash with non-cash payments in modern conditions.Methods. General scientific and empirical techniques and tools of economics, methods of analysis and synthesis, comparison, compilation and grouping are used.Results. Despite the development of modern banking technologies and the spread of non-cash payments, it is premature to talk about the complete replacement of cash with electronic money. Cash and non-cash forms of money circulation will coexist for a long time. Cash remains an important instrument of payments, taking into account a number of shortcomings inherent in electronic payments. The possibilities of implementing the concept of “cashless society” in practice are currently unattainable, and cash retains a number of advantages over the other payment instruments. Therefore, proper providing of cash flow in the economy is a necessary condition for financial stability and efficiency of the organization of money circulation.Prospects. Studying, taking into account the experience of the banking systems of developed countries, possible directions for improving the organization of cash circulation by bettering the technical conditions of banks, minimizing cash service costs and creating optimal opportunities for all economic agents to freely choose the forms and methods of using money as means of payment.