The Problems and Prospects for Developing the Cryptocurrency Market in Ukraine

Abstract

The article is aimed at studying the history of origins, the preconditions for development, the main problems of functioning, and the prospects of legalizing the cryptocurrency market in Ukraine. One of the key risks when implementing advances of the IT in the financial sphere is the possibility of physical disappearance of banking system in its classical form because of its inability to compete with new technologies. The most troubling, versus the classical banks, may be considered such new technologies as credit electronic platforms and blockchain. In the recent time the bitcoin course has been growing rapidly, giving all the reasons to consider it primarily a classical «pyramid scheme». The cryptocurrency market may also be characterized a «pyramid scheme» because of the fact that the course of such a currency has not any coverage except increase in the number of participants and investors. Ukraine is not a leader in the international cryptocurrency market, albeit not an outsider. In order to secure a reliable State control of the «gray» cryptocurrency market, which is actually present in Ukraine, the article suggests some necessary actions directed towards legalizing and ordering this phenomenon.

Keywords

• cryptocurrency
• bitcoin
• course
• interest rates
• National Bank of Ukraine
• legalization
• ordering