Fiat digital currencies: from idea to implementation

Abstract

This publication is devoted to the study of a new financial and legal instrument central bank digital currencies (CBDC) that is had distributed worldwide. Fiat digital currencies are being issued already in some countries, in others the issue of their introduction is under discussion only. Based on the method of comparative law and other methods of scientific research, the author opens out the common legal features of digital currencies of various countries and their differences as well. The foreign experience made it possible for author to generate the advantages and disadvantages of the digital currencies of central banks. Among the first, the simplification of cashless payments, the reduction in the costs of making money transfers, transparency for central banks and financial supervisory authorities of operations with digital currency, an increase the level of security and safety of funds, etc. Disadvantages CBDC are the distrust of citizens in digital currencies, the inability to solve the problem of weakness and instability national currency with the help of a new digital tool, the enormous costs of the Central Bank of the Russian Federation, credit institutions of creating this system, developing special programs for clients integrated with the digital platform, the possibility of leakage of personal information, as well as full openness of information about users. The Russian practice of introducing the digital ruble has not been left without attention. The publication also touches upon some legal problems of this subject and proposes their solutions. The author, in addition to general scientific methods, primarily uses such special methods of scientific knowledge as the formal legal method, the method of comparative law, empirical methods such as collecting of the data on the distribution of digital currencies of the central banks of the world, comparative analysis of legal documents, observation.

Keywords:

financial system, financial law, central bank digital currencies, fiat currency, monetary system, digital platform, digital ruble, digital wallet