FUNCTIONAL OF DIGITAL CURRENCIES AS AN EXTERNAL MANIFESTATION OF THEIR ESSENCE AND A FACTOR OF DEVELOPMENT

The article analyzes the phenomenon of decentralized digital currencies from the standpoint of their functions. The nature and directions of the use of these currencies in modern payment circulation make it possible to raise questions about their monetary status and the extent to which their functionality corresponds to various sets of monetary functions. The article contains a comparative analysis of various classifications of the functions of money, undertaken with the aim of choosing the most adequate to the modern monetary phenomenon of their theoretical structure. Projecting this structure onto the directions and methods of operating with decentralized digital currencies, comparing them with the peculiarities of the circulation of fiat money as a whole showed the similarity of the functional of means of payment of various origins. From the standpoint of the functional approach, decentralized means of payment contain pronounced monetary properties. Turning to the experience of studying private money showed that fiatity is one of the attributes of money as such, and the absence of legal tender status, the traditional security inherent in these funds, cannot serve as a reason for not recognizing the possibility of the emergence of private money and competition in the monetary sphere. The expansion of the payment turnover at the expense of means of payment of decentralized origin, the replenishment of the financial market on the basis of this process with new instruments and products are considered as empirical confirmation of the put forward thesis about the functionality of digital currencies. These opportunities are viewed as an important factor in the formation and development of a decentralized financial reality, the emergence of institutional new formations in the financial market, and increased competition between these entities and traditional market institutions.

essence of money, functions of money, fiat money, digital currencies, functions of digital currencies, cryptocurrencies, private money, competition in the monetary sphere, traditional financial systems, decentralized financial systems

Fiapshev A. B. Functional of digital currencies as an external manifestation of their essence and a factor of development. Business. Education. Law, 2022, no. 1, pp. 25—31. DOI: 10.25683/VOLBI.2022.58.119.