Currency Internationalization and Reforms in the Architecture of the Monetary System: the case of Digital Yuan

2021 ◽  
Vol 40 (1) ◽  
Author(s):  
Zhi Ji ◽  
George Abuselidze ◽  
Valeriia Lymar
Keyword(s):  
Financial System ◽  
The State ◽  
Chinese Government ◽  
Security Technology ◽  
Digital Currency ◽  
Negative Results ◽  
Monetary System ◽  
The Government ◽  
Financial Transactions ◽  
Global Financial System

In the paper, the authors prove that the application of the Chinese currency in the less developed regions reveals that the Chinese Yuan, despite its limited turnover, can replace the national currency. The following positive and negative results on the global financial system are highlighted promoting the internationalization of the digital Yuan: ensuring and unlimited transparency of the government and visibility of internal financial transactions; transparency of all offshore financial transactions within a country as well as of non-resident users; providing a framework for the global financial system and controlling the monetary policies of regional economies that have actively adopted the Yuan. The paper analyses that the strategy of the Yuan internationalization was implemented through the mechanism of the currency swap agreements with central banks of different countries, respectively, the growing international application of the Yuan gradually stimulated the creation of the „Yuan zone". It is proved that the Yuan internationalization has become a part of the state strategy of the Chinese government in transition to a new type of economic growth, so the digital Yuan should eventually replace cash and will become the main innovation in the global financial system since the appearance of digital currency. According to the conducted research, it is shown that the main technology of the state digital currency of China accommodates security technology, transaction technology, and reliable guarantee technology. The system of Digital Currency, Electronic Payment - DCEP includes a digital currency tracking method system and a digital currency management system based on certain conditions. Launch conditions include terms of economic conditions, interest rate terms of the loan, the terms of the subject flow, and time conditions.

Inside global financial networks

2018 ◽  
Vol 8 (3) ◽  
pp. 294-299 ◽  
Author(s):  
Laura-Marie Töpfer
Keyword(s):  
Firm Behavior ◽  
Financial System ◽  
The State ◽  
Financial Networks ◽  
Different Types ◽  
Competitive Hierarchies ◽  
Global Financial System

The commentaries on this forum’s anchor article, ‘China’s Integration into the Global Financial System: Toward a State-led Conception of Global Financial Networks’, examine how the state is shaping global financial networks (GFNs). In response to these reviews, this article discusses three common themes that bind the different commentaries: (1) different types of agency, power, and the rise of new actors; (2) the methodology behind studying state-led GFNs; and (3) the structural question of ‘Chinese exceptionalism’ as a mode of capitalism. Overall, this article affirms that the state remains central to our understanding of competitive hierarchies and firm behavior in financial networks.

scholarly journals Externally-imposed Institutional Barriers on Transnational Entrepreneurs: Lessons for the Iranian-Canadian Case

2021 ◽  
Author(s):  
Pouyan Tabasinejad
Keyword(s):  
Competitive Advantage ◽  
Country Of Origin ◽  
Financial System ◽  
The State ◽  
Institutional Barriers ◽  
Transnational Entrepreneurship ◽  
Transnational Entrepreneurs ◽  
Global Financial System ◽  
The Way

Scholars of transnational entrepreneurship have largely focused on the issue of institutional barriers within the country of origin (COO) context, asserting that transnational entrepreneurs (TEs) can overcome these barriers in a way that constitutes a competitive advantage. What has not been analyzed in the literature is the way in which institutional barriers that are imposed from outside of TE networks can affect TE behaviour and success. In this study, I will introduce the concept of externally imposed institutional barriers, using the example of Iranian TEs as a case study in which to understand this concept. By looking at three cases of Iranian TEs functioning within the context of Iran’s exclusion from the global financial system, this study will draw conclusions on the state of Iranian-Canadian TE activity and its implications for scholars, practitioners, and policymakers.

The Financial System Stability: The Essence, Vulnerability, Ways to Provide

2021 ◽  
pp. 81-90
Author(s):  
Yurii Lupenko ◽  
◽  
Yurii Radionov ◽  
◽  
◽  
...  
Keyword(s):  
Budget Deficit ◽  
Financial System ◽  
Decisive Role ◽  
The State ◽  
System Stability ◽  
State Budget ◽  
Internal Factors ◽  
Endogenous Factors ◽  
The Government ◽  
The Stability

The state financial system must function smoothly and respond promptly to destabilizing exogenous and endogenous factors that can arise at any time. Therefore, ensuring the financial system's stability and improving its mechanisms is an important component of public policy. The purpose of the article is to reveal the essence of the financial system's stability, identify internal factors of the financial vulnerability of Ukraine that may affect the effectiveness of the country's financial system, and find ways to overcome them. The content of the concept of "stability of the financial system" is revealed. It is established that the use of different terminology indicates the complexity and, at the same time, the versatility of this term. According to international experience, the country's central bank has a decisive role in assessing the stability of the financial system; in Ukraine, this function is performed by the National Bank of Ukraine. It was found that inefficient use of budget funds is one of the key factors in the financial system's vulnerability. The state of execution of the State Budget of Ukraine in 2020 is analyzed. It has been established that over the last decade, the budget has been executed with a deficit, and the existence of a significant budget deficit leads to a movement in the “debt spiral”. The Government borrows a significant amount of money to implement the budget, and therefore it is becoming increasingly difficult to attract them on reasonable terms. Failure to receive the funds leads to late spending. Thus, the budget deficit, public debt, and inefficient use of budget funds are the internal factors that increase the financial system's vulnerability and undermine its stability.

scholarly journals ROLE OF MONETARY POLICY IN FINANCIAL SUPPORT OF ECONOMIC GROWTH OF THE RUSSIAN FEDERATION

2021 ◽  
pp. 5-11
Author(s):  
Elena Ivanovna Vorobyova
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Economic Policy ◽  
Financial Stability ◽  
Historical Analysis ◽  
The State ◽  
Negative Consequences ◽  
Monetary System ◽  
The Government

The monetary policy of the Central Bank of Russia is an integral part of the economic policy of the state, that is, the Bank of Russia, together with the government, determines the main parameters of the monetary system. However, the role of monetary policy in the socio-economic development of the state has not been sufficiently disclosed. The use of methods of monetary regulation can be effective only in combination with sound economic measures implemented by the government. The relevance of this topic lies in the fact that it is necessary to determine what methods of monetary regulation can ensure sustainable economic growth, as well as how monetary policy should be combined with national economic policy. For the purpose of research, various scientific methods and approaches were used, in particular, methods of theoretical analysis, economic and statistical methods, methods of comparison, analogy, historical analysis. As a result of the research, it was found that monetary policy is not consistent with the economic policy of the state. The use of the formed budget funds is not always expedient, which leads to such negative consequences as inflation, excessive polarization of the population’s income, and low rates of GDP development. The studies carried out made it possible to determine the main directions of monetary policy and a set of economic measures that can stop the fall of the national currency (devaluation), ensure financial stability and a gradual growth of GDP.

scholarly journals ТЕОРЕТИЧНІ АСПЕКТИ ФІНАНСОВИХ РЕСУРСІВ ПОЗАБЮДЖЕТНИХ ФОНДІВ

2020 ◽  
pp. 43-48
Author(s):  
Дмитро Васильович Колечков
Keyword(s):  
Russian Federation ◽  
Social Protection ◽  
Financial System ◽  
The State ◽  
Point Of View ◽  
Financial Resources ◽  
Public Finances ◽  
Historical Method ◽  
The Russian Federation ◽  
The Government

Formulation of the problem. Issues of environmental management, infrastructure of regional and municipal scale, development of trade and services, use of real estate, introduction of special forms of education, culture and health care can be implemented with the help of financial resources of the region. The work is devoted to theoretical aspects of financial resources of state extrabudgetary funds of the Russian Federation. The purpose of the article is to determine the importance and place of state extrabudgetary funds in the financial system, the main directions of optimization of state financial resources, their development in spatial aspect from the point of view of the functioning of territorial budgetary systems and federal extrabudgetary funds in the regions of the country. The object of the study is the financial resources of the state extrabudgetary funds of the Russian Federation. Methods used in the study. The methodological basis of the study is the system of scientific methods used in the complex to achieve the goal and solve the set tasks. The dialectical method had made it possible to justify causal relations in the operation of State budgetary systems. The historical method is applied in the study of historical experience of financing the social sphere. Popular scientific, systemic and logical methods have also been used to obtain research findings. The empirical basis was international conventions, legislative acts of the Russian Federation, reference literature. Statement of the main material. Public finances in the regions should be considered not only with regard to the budgetary sphere, but also the activities of state social extra -budgetary funds, their importance in education and spending of public finances. The functioning of State budgetary funds is based on the rele- vant legal acts of State authorities, where their activities are regulated, sources of education are established and rules for the use of financial resources are drawn up. One of the main priorities of the Government 's activities is the pension, social and medical sectors, which need significant expenditures. The systemic independence of the above-mentioned funds, their removal from the budgetary sphere, will ensure the smooth implementation of these expenditures. Research conclusions. The analysis of theoretical aspects of financial resources makes it possible to conclude that regardless of the interpretation of the concept of "financial system," state extrabudgetary funds are an independent link of the current financial system of Russia. The diversity of forms and sources of financing for social development and social protection programmes has determined the increased responsibility of the State in regulating these processes, the improvement of which should mean the implementation of a set of measures.

scholarly journals Digital currency: features of regulation in the Russian Federation

2021 ◽  
Vol 5 (1) ◽  
pp. 58-67
Author(s):  
T. E. Rozhdestvenskaya ◽  
A. G. Guznov
Keyword(s):  
Civil Rights ◽  
Russian Federation ◽  
Financial System ◽  
Legal Regulation ◽  
The State ◽  
Financial Assets ◽  
Digital Rights ◽  
Digital Currency ◽  
The Russian Federation ◽  
The Impact

The subject of research, relevance. The development of digital technologies has an impact on almost all areas of society, including the financial sphere. This is the reason for a serious controversy to develop recently and to continue both at the international and national levels in terms of approaches to their legal regulation. This discussion affects both public law and private law. The emergence of such a phenomenon as digital currencies raises the question of their legalization for legislators of various states. The answer to such a question cannot be found without studying the legal consequences of making such a decision for both individuals and the financial system of the state. The purpose. The article puts forward and substantiates a hypothesis that the choice of legal methods for regulating virtual assets is a matter of legal policy, and not just matter of research in the field of defining virtual assets as objects of law or type of property. As a result, when choosing methods of legal regulation of virtual (digital) assets, not only the impact of these legal entities on legal economic turnover (including such issues as the possibility of using excess generated electricity or taxation issues) should be assessed, but also the risk of stimulating illegal "economic" turnover (turnover of things and services in the Darknet, limited turnover of things, for example, drugs), as well as the impact on the financial system. The methodological basis. Various scientific methods of cognition were used to write the article, including system-structural, formal-logical, comparative-legal and dialectical. The research is based on the principles of interdependence and interconnectedness of social processes. The main results, scope of application. The article examines the main approaches to the regulation of digital currencies, studies the phenomenon of digital currency itself, assesses the circumstances that aroused massive interest and enthusiasm for cryptocurrencies. An analysis of current positive legal material is presented, in particular, the approach to the regulation of digital currency contained in the Russian Federal Law of July 31, 2020 No. 259- FZ "On digital financial assets, digital currency and on amendments to certain legislative acts of the Russian Federation". The main differences between digital currencies and such a legal phenomenon as digital rights (including utilitarian digital rights and digital financial assets) are noted. It is noted that in most Russian scientific works in the field of law devoted to digital currencies, attention is paid to the definition of digital currency as an object of civil rights, the foreign experience of attempts of legal regulation of cryptocurrency is considered, emphasis is placed on the positive aspects of the legalization of cryptocurrency for individuals, the risks of legalization of cryptocurrency for individuals, as well as the tasks of regulators in the digital economy are investigated. In addition, some scientific works are devoted to issues related to the digitalization of the economy and digital security. However, little attention is paid to the consequences of the legalization of digital currencies for the monetary system of the state and the potential risks for the stability of monetary systems. Conclusions. Interest in digital currencies may decrease in following situations. Firstly, if the services provided by payment systems are more efficient, reliable, affordable and cheap for the consumer. Secondly, during the implementation of the central bank digital currency project (in Russian case - the digital ruble), since digital currencies issued by central banks have the advantages of private digital currencies, but are devoid of their disadvantages.

scholarly journals The impact of digital technologies on modern society. An example of a social credit rating system in China

2020 ◽  
Vol 3 (3) ◽  
pp. 35-44
Author(s):  
A. P. Klimovich
Keyword(s):  
Rapid Development ◽  
The State ◽  
High Tech ◽  
Chinese Society ◽  
Chinese Government ◽  
Government Control ◽  
Social Credit ◽  
Western Democracy ◽  
The Government ◽  
The Impact

The issue on the first principles of Internet building in China has been considered. An overview of establishment has been made and the specifics of the development of the Chinese information technology industry in recent years has been analysed. The influence of the state policy on digital technology market has been studied. The principles of Chinese authorities’ actions in relation to the domestic and foreign high tech markets have been highlighted. The causes of the Chinese industry rapid development, based on the state activity aimed at supporting the local manufacturers, have been analysed. Protectionism policy defining the government control pattern has been evaluated. Chinese development main program scale, embracing not only national, but also world economics, has been considered. It has been shown how domestic economy policy coincides with Chinese government foreign policy and how it is directly reflected in it. A parallel has been drawn between the principle of establishing of social credit system and the idea of counting merits and drawbacks, laying in the basis of finely built system of rewards and punishments of traditional Chinese society. A connection of this tradition with the official goal of the system, stated by the government of China to teach the Chinese society to become more honest by complete surveillance over people, has been shown. It has been shown how this system classifies people into several categories, creating the lists of those to reward and those to censure. The mechanism of how the state uses private companies’ resources, applying all its power to influence on them, has been considered. A critical analysis of the foundations of the system from the point of view of Western democracy values has been carried out. An overview of development prospects of the studied system and the assessment of the risks associated with it have been made. It has been noted that despite the fact that the basic ideas for the system are borrowed from the international practice of the financial sector, making decisions on authorizing going beyond the judicial system and transferring the classification of people in the lists of good and bad to the level of algorithms run counter to the principles of European and international law.

scholarly journals THE CENTRAL BANK OF THE RUSSIAN FEDERATION: THE ISSUE OF CASH AND ORGANIZATION OF MONETARY CIRCULATION

2017 ◽  
Vol 2 (4) ◽  
pp. 209-212
Author(s):  
Безуглый ◽  
Eduard Bezuglyy ◽  
Кутергин ◽  
Nikolay Kutergin ◽  
Алексеев ◽  
...  
Keyword(s):  
Central Bank ◽  
Russian Federation ◽  
The State ◽  
Economic Activities ◽  
Monetary System ◽  
The Russian Federation ◽  
Financial Transactions ◽  
Monetary Circulation

In modern conditions the issue of funds does the state represented by the Central Bank of the Russian Federation. Modern money is characterized by a variety of forms, which is associated with many commodity, monetary and financial transactions used in the financial and economic activities. Money issue is one of the main elements of the monetary system of any state in which there are a variety of economic processes.

Understanding China’s News Media in Historical Perspective

2019 ◽  
Author(s):  
Sei Jeong Chin
Keyword(s):  
News Media ◽  
The State ◽  
Chinese Government ◽  
State Control ◽  
Chinese Media ◽  
State Expansion ◽  
Political Role ◽  
The Media ◽  
The Government ◽  
The Impact

The Chinese media has been discussed either as a challenge to the authoritarian regime or as an instrument to consolidate state power in the recent debates concerning the impact of the Internet and the expansion of social media on China’s authoritarian rule. Both views have adopted the framework that was developed out of the liberal model of media in the West. In the liberal model, the news media should go through full-flown commercialization to achieve autonomy and independence from the state. The independence of the news media from the state is the precondition for the news media’s role as watchdog of the state and check on the government. However, the liberal model does not fit the actual historical experiences of the news media in China. Throughout the 20th century, state control of the media expanded in the context of state-building, war, and revolution. The Chinese media did not go through full-flown commercialization to the extent that the media would achieve complete independence from the state. Rather, in the context of state expansion, the media and the state became interdependent rather than antagonistic. In the state-dominated environment, the media did not necessarily seek independence from the state. Nevertheless, even without independence, the media can still play a significant political role within the limits and boundaries set by the state. This has important implications for understanding the resilience of the contemporary Chinese government.

scholarly journals WHAT WORLDVIEW FEEDS THE EXISTENCE OF CRYPTOCURRENCY?

2020 ◽  
Vol 15 (20) ◽  
pp. 73-80
Author(s):  
Nino Liparteliani
Keyword(s):  
The State ◽  
Theory And Practice ◽  
Wall Street ◽  
Virtual Currency ◽  
Digital Currency ◽  
Short Period ◽  
The World ◽  
The Future ◽  
The Government ◽  
Traditional Paradigm

Cryptocurrency is a virtual digital currency. The main reason for the popularity of digital currency is its decentralization and the peculiarities arising from it. Austrian economist and philosopher Friedrich August von Hayek In the 1970s, he became interested in the benefits of money-laundering by the state and began exploring the possibilities of alternative currencies. In 1976 he published the book: Denationalization of Money: An Analysis of the Theory and Practice of Concurrent Currencies. According to Hayek, the state monopoly on the issue of money should be abolished, he writes: The special right of the country's governments to issue and regulate money could not help the society to receive much better money than it would have without the intervention of governments. It was this work by Hayek that prepared the ideological basis for the creation of decentralized digital currency. The purpose of creating a cryptocurrency is to get rid of the directives of central banks. If cryptocurrencies are created by the governments of countries, the basic idea of creating a virtual currency that virtual capital in the Internet space must be beyond the control and regulation of the government is lost. It is in this fundamental idea that the best degree of freedom is best seen, the increased degree of human dependence on free money, which raises many questions, namely:  What is the philosophical concept of creating cryptocurrency?  What worldview feeds the existence of cryptocurrency?  Does the existence of cryptocurrency have an intellectual basis?  What is the future of this venture?  What principles or obligations should the government follow when talking about cryptocurrency?  Is the world preparing for a single currency? The term decentralized digital currency has great appeal, the freedom to depend on money on this scale has long been awaited by mankind, despite the fact that we have numerous examples of independent money making in the world. Can cryptocurrency free us from default? The answer to this question is heterogeneous. One group of experts believes that they do not see default in the crypto world at all, because there will be no need to attract capital by traditional methods, there will be no need for long-term commitments, no bonds will be needed, we will move from the industrial era to the service era, cryptocurrencies. Wall Street positioners even call this view futuristic and say that bonds are a structure of contracts and rules that are not in the crypto world. In our opinion, this may be the traditional paradigm of the attitude of the old representatives of the financial world to the crypto industry. There have been serious tectonic shifts in recent geoeconomics, such as Brexit, the struggle for Catalan independence, the Donald Trump phenomenon, the Recep Tayyip Erdogan factor, and so on. All this breaks the old economic models that we previously thought were unalternative. In the final part of the research topic, we discuss the pros and cons of cryptocurrency, namely that the exchange rate of any cryptocurrency fluctuates rapidly in a very short period of time, there may be a complete depreciation of a particular currency, nothing can prevent it, Return is virtually impossible because the transactions are anonymous, there have been numerous cases of cryptocurrency exchanges in the world, it is practically impossible to investigate the fact, due to the anonymity of these transactions, cryptocurrencies are not secured by any assets, unlike shares they do not allow buyers or property. Against this background, it is interesting to see what place cryptocurrency will occupy in the new currency system. The fact is that virtual finance is a new word in online technology that will change in the future, no matter what the new model of running the economy.

Sign in / Sign up

Export Citation Format

Share Document