Digital money at the present stage: Key risks and development direction

Abstract

The article explores modern trends in the development of digital money. The purpose of the article is to identify and analyze the risks of digital money, and to study scientific approaches and tools for managing these risks. The authors use general scientific and special research methods, including comparative legal analysis and a systematization method, as well as methods of economic theory: positive analysis and scientific abstraction. The research highlights the strategic challenges and guidelines in the development of digital money in the Russian Federation and shows the difference and common features of digital and electronic money. Based on a comparative analysis of private and national digital money, we conclude that the digital money of Central Banks is more flexible and more reliable for consumers than private cryptocurrencies. We systematize the risks of digital money circulation at the micro, mezzo and macro levels, as well as identify the essential tools for managing them. The authors note that exogenous risk management tools are more typical for private cryptocurrencies, and endogenous tools will apply to digital money of central banks, in particular, the development of an appropriate configuration of Central Bank digital currency. The study may be useful for digital money users, as well as government agencies implementing policies and regulations on the issue and circulation of digital money in Russia.