Mechanism of influencing national financial system by cryptocurrencies

Abstract

The article highlights the specific features of the impact of cryptocurrencies on the financial processes, problems and risks generated by the monetary surrogates that affect the national financial sustainability. The urgent problems have been defined due to identifying the cryptocurrency market area in the national financial system. It has been stated that the cryptocurrencies penetrating into the financial system cause a drop of the demand for the national currency, create the conditions for activating the national wealth abroad, and distort the real picture of the financial market statistics, which does not allow for the effective monetary policy with the national regulator. Transactions related to the purchase of cryptocurrency for the national currency are studied. Such practice is found to create conditions for reducing the level of financial security of the banking system due to the possible significant increase in the number and volume of money transfers to the accounts of cryptocurrency exchanges, which could lead to decreasing the instant and current liquidity of the banks, because a significant part of current and short-term deposits will be converted into cryptocurrency in this case. There has been substantiated a situation when, given the growth of transactions in the cryptocurrency obtained as a result of mining, the banks will face an excess of liquidity as a result of a decreasing demand for the national currency. The circumstances pose a threat to the Russian financial system, taking into account a current expansion of cryptocurrencies into the Russian financial system. The objective realities of the development of the Russian and global financial markets suggest that these expansionary trends will continue and intensify. Under these conditions, the cryptocurrencies penetrating into the national financial system require developing the specific mechanisms for their reduction, and this problem should become one of the directions for further development of the financial science.