Digital currency makes effect on global monetary product, which has been developed by private and civil physiques.
Digital currency is considered as an asset stored in electronic type that performs the exact same function as the physical money.? Digital currency consists of cryptocurrency shaped in the form of electric record? (Bitcoin, Litecoin, Dogecoin, Peercoin) and virtual currency (Linden Dollars, Seriously Gold). They consist of each other due to enterprises and functions (dbc.wroc.pl).
Cryptocurrency as a online monetary system is maintained by P2P multilevel and is protected with a powerful code. It might be relocated to any worldwide location. Network orders are carried out and looked at immediately.
It should be observed that the financial environment remains always opened. It is decentralized. No fundamental body bears task and supervises it all or interferes with private transactions (globalfxm).
It should be noted that the cryptocurrency assets (for example Bitcoin) has changed parts for wealth assortment. Therefore, cryptocurrency has widely spread thanks to its efficiency, quick transaction, design tendency, operational and confidentiality characteristics.
Digital capital illustrates the importance of money-credit policy that is definitely focused on money flexibility. Amid global developments, central banks look at opportunities of issuing sovereign digital currency (The us, European Central Bank), Peoples Bank of Cina carries out experiments for technical specifications. Lender of England does research works for quite a few years. Commerce Bank with Switzerland (UBS) plans to put into practice digital currency challenge? jointly with Six major commercial banking institutions (Barclays, CIBC, Credit Suisse, HSBC, MUFG and State Block). The issuance is prepared in 2018. centralbanking).
The worlds major banking institutions have taken first steps regarding moving to blockchain method (to the direction with Bitcoin). According to forecasts, for that coming 10 years, the ratio of Blockchain in global GDP will be 10%.
The research functions prove that the marketplace of cryptocurrency continues rising after a 25% downfall. Reported by reports by study organizations, more than 1106 cryptocurrencies tend to be recorded worldwide along with market capitalization accocunts for 159.8bln USD.
Along together with global processes, each private and city societies have been additionally shaped in Atlanta for use of electronic money. Digital capital (namely, Bitcoin) enables in order to trade, exchange, retail outlet, collect products in addition to invest in? investments instruments attached to Bitcoin price.
It ought to be noted that electric monetary system doesn’t have stable and state-dominated personal hierarchy. However, it’s advantage is various and among them we should notice (oecd):
- Assessment of money aggregates and money yield returns speed in financial system;
- Checking a huge volume of deals in everyday plan in real time in private environment.
- Supervision over dollars aggregates, efficiency of policy of correction to get macroeconomic purposes;
The research operates prove that between spread of electric money, key problems are as follows:
- fixation of minimal expression, universal attainability;
- its reputation as a legal repayment method for all general public transactions (WEF, 2017).
- Growth in key banks efficiency, fulfillment involving base functions;
- Efficiency regarding digital money for exchange instrument, security of its storage, equilibrium of its value inside economic and monetary operations (voxeu);
- Weakening potential involving macroeconomic instruments; problem with management (taking necessary decisions and implementation) on global level;
It needs to be noted that today a huge volume of income generates real difficulties in the world. The fact is that the global market capitalization with Bitcoin is an important part of money size.
Therefore, there are more questions than answers to the issues which include: volume of money in income and efficiency of giant money mass. Whether it makes influence on rising cost of living level, stability of costs (bis.org);
Based on presentation of issues, we can note that in the field of digital foreign currency and payment technology, amid quick paces involving innovations, Government must take active steps so you can get prepared for global digital camera challenges.
The current universal developments show that digital money cannot generate influence on national personal system, but in long-term viewpoint the inactive job of our central lender may raise specific risks. To ensure healthier and valuable atmosphere for the future challenges, Nation’s Bank of Georgia (NBG) should take the following measures in digital monetary industry:
- Conduct research works;
- Arrange legislative environment;
- Arrange rules along with standards for shaping digital monetary method;
- Shape a system of attitudes that will consider a electronic money as a part of money-credit along with currency policy.
Rati Abuladze? ?Doctor involving Economics