ON THE WAY TO THE DIGITAL STANDARD OF THE WORLD CURRENCY SYSTEM

  • Zakharchenko V. Vinnytsia National Agrarian University
Keywords: currency, money, cash circulation, the world currency system, special borrowing rights, the standard of the world currency system

Abstract

The article summarizes the issue of transition to a new standard of the world currency system in the context of the world financial crisis 2008. and the crisis caused by COVID-19. The main purpose of the study is to analyze the problem of transition under the influence of a number of fundamental factors to the new (digital) standard of the world currency system. Systematization of literary sources and approaches to solving this problem showed that in the first post-crisis years most authors focused on the need to modernize the world currency system based on the paper-dollar standard. However, in the following years, scientific searches moved towards justifying the transition to a digital standard. This indicates that the global monetary system is waiting for a cardinal "break" and a quick transition to a new standard. The urgency of solving this scientific problem is that the transition to the digital standard will prevent in the future many crisis situations. The study of the problem is carried out in the following logical sequence: first analyzed the fundamental factors that transform the world monetary system, and then conducted a comparative analysis of possible variants of its transition to a new standard. Methodological tools of the study were: system approach, methods of analysis and synthesis, historical, logical generalization, comparison, etc. The object of the study is the standards of the world monetary system, and the subject - the choice of the optimal standard. The article highlights the factors that make it necessary to move to this standard, namely: strengthening China's military-economic potential; US government debt growth; the need to overcome the consequences of financial and economic crises; excessive emission of reserve currencies; Electronics of cash circulation. Their analysis showed that the possible options for the optimal standard of the world currency system are the following: return to the gold standard; introduction of so-called "free money"; transition to binary cash equivalents; creation of currency alliances; increasing the role of the world currency, special borrowing rights; creation of the world electronic currency; go to virtual money. The study confirms and theoretically proves that the optimal standard of the world currency system for the coming decades should be the standard of electronic money. The results of the study can be useful in terms of preventing the devastating consequences of global financial and economic crises.

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Author Biography

Zakharchenko V., Vinnytsia National Agrarian University

Doctor of Economic Sciences, Professor

https://orcid.org/0000-0003-3645-2597

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Published
2022-03-13
How to Cite
Zakharchenko V. (2022). ON THE WAY TO THE DIGITAL STANDARD OF THE WORLD CURRENCY SYSTEM. Economic Forum, 1(1), 90-99. https://doi.org/10.36910/6775-2308-8559-2022-1-11
Section
INTERNATIONAL ECONOMIC RELATIONS