Baltic Journal of Economic Studies

Vol. 5, No. 2, 2019

Corresponding author:
1 O.S. Popov Odesa National Academy of Telecommunication, Ukraine.
E-mail: BondarenkoO@ukr.net
2 Odessa National Economic University, Ukraine.
E-mail: ok_5@ukr.net
3 Zhytomyr State Technological University, Ukraine.
E-mail: d-38-053-03@ukr.net

DOI: https://doi.org/10.30525/2256-0742/2019-5-2-10-17

THE POSSIBILITIES OF USING INVESTMENT TOOLS
BASED ON CRYPTOCURRENCY IN THE DEVELOPMENT

OF THE NATIONAL ECONOMY
Olena Bondarenko1, Oksana Kichuk2, Andrii Antonov3

Abstract. The international experience of various countries of the world in the implementation, usage, and economic
and legal status of cryptocurrency is compared in this research. The advantages and disadvantages of using
cryptocurrency at the present stage of economic and scientific-technical development of Ukraine are considered.
The results of the research of the awareness of market participants regarding the advantages and disadvantages
of cryptocurrency and the presence of interest in the usage of cryptocurrency are given. The aim of this article is to
study the possibilities of using cryptocurrency for economic development. The object of the research is the process
of using cryptocurrency in the market in Ukraine, taking into account world experience. Practical implications.
The results of a study of the demand for cryptocurrency in Ukraine. The research was conducted with the help of a
questionnaire, as a result of which it was found out: the level of awareness of cryptocurrency; subjective perception
of cryptocurrency; sources of awareness of cryptocurrency; the presence of the potential interest of Ukrainians
in the acquisition of cryptocurrency. It was found what exactly Ukrainians consider the main advantages and
disadvantages of cryptocurrency. Value/originality. Cryptocurrency as a means of payment and a type of electronic
money is found in the most countries of the world in the “grey” zone, and regulators, if not prohibit, then at least
do not recommend citizens to invest in such assets. However, the state of science and technology development of
blockchain technologies, which are the basis of cryptocurrency, and the state of demand for cryptocurrency in the
Ukrainian market are ready to use cryptocurrency. For the effective implementation of cryptocurrency, Ukraine lacks
only the normative framework. Developing a regulatory framework in this area will help to bring cryptocurrency
markets to stability. The introduction of international experience in the usage of cryptocurrency in Ukraine, the
creation of own model of behaviour will be the first step towards building a transparent and understandable
cryptocurrency market, which will lead to the development of the economy as a whole.

Key words: cryptocurrency, Bitcoin, demand for cryptocurrency, digital money.

JEL Classification: Е40, E42

1. Introduction
The digital space of today is constantly changing,

every second it becomes more complicated and has
no boundaries. Digital technologies are the main trend
of the present. Interest is growing, both in the digital
technologies themselves and in their products. One of
these digital goods is digital money (electronic money/
digital currency). Currently, electronic money has
become particularly popular, despite the fact that they
appeared relatively recently. This is facilitated by such
factors as the convenience of paying for goods in online
stores, high speed of transactions, and the use of modern
technologies to ensure the security of transactions. One

of the most promising types of electronic money is
cryptocurrency.

Cryptocurrency is a type of digital money, protected
from counterfeiting, which can be stored in electronic
wallets, and also transferred from one purse to another.
The difference between cryptocurrency and electronic
money is that in order to conduct operations with
electronic money, money must first be deposited into an
account using a payment terminal or a bank. Electronic
money is simply a form of presenting the money we use
in everyday life. Cryptocurrency is created and produced
via the Internet, while it is not associated with any of the
usual currencies and is not ensured by something, but

Baltic Journal of Economic Studies

Vol. 5, No. 2, 2019
it has its own market and supporters. Discussions that
are being conducted about cryptocurrency, both in the
Central Banks and the governments of many countries
and in the business environment, unanimously require
a scientific and economic approach.

So, the problems of implementation, research,
possibilities of usage, regulation, circulation, and control
of cryptocurrency are relevant issues for all countries
of the world at present. Many domestic and foreign
authors (Amarnath, 2018; Higbee, 2018; Ibrahim,
2018; Swammy et al., 2018; Thapar, Chandel, 2018;
Orme, 2019) were engaged in the study of this problem,
but still didn’t find a common solution, which led to the
choice of the theme of this research.

The aim of this article is to study the possibilities of
using cryptocurrency for economic development.

2. The concept of cryptocurrency
In the modern world, computerization and

internetization of almost all spheres of human life are
proceeding at an enormous pace. These processes could
not but affect the financial system of society. In recent years,
both banks and other financial institutions have penetrated
the worldwide network, smartphones, and computers.
But it was a process of adapting the existing functions of
the system to the modern consumer of financial services,
taking into account developing technologies. Instant
payments, online account access, and the ability to instant
contactless payment for goods have changed the financial
relations vision (Swammy, 2018).

In 2008, a unique inherently experiment began. Satoshi
Nakamoto presented to the world an alternative financial
system and Bitcoin cryptocurrency. After three years of
development by enthusiasts and cyber anarchists, in
2012 the system began to gain popularity and they started
talking about cryptocurrency at the level of states and
international organizations (Shipra, 2017).

Bitcoin e-currency was launched in 2009. This is the
first fully decentralized electronic monetary unit in the
world, in which there is no single emission centre at
all, operations within which are built on peer-to-peer
information exchange technologies. Cryptocurrency is
the so-called currency of a new generation, the software
for which is distributed on the principles of open access,
all payments in which are completely anonymous and
are not controlled by anyone and cannot be controlled
technically, even with a strong desire, and the work of
cryptocurrency can be neither stopped nor blocked. For
any transaction within the system (in both directions)
0% is taken, in this respect, it is a unique, completely free
payment system (Sreedharan, 2019).

The question “Is cryptocurrency money?” is still
open in most countries of the world. It exists only in
the virtual space, which means that it does not have
a physical counterpart. The cryptocurrency is based on
computer code, that is, it itself is only encrypted data

that cannot be copied, which means that such a unit of
currency is relatively protected from falsification.

At the moment, there are more than 2000 different
types of virtual money. The popularization of virtual
money is growing every year, as it is shown in Table 1.

Table 1
The release of cryptocurrency in 2009–2017

Cryptocurrency
Start of

Exploitation
Upper Bottom Line

Bitcoin 2009 year 21 million
Litecoin 2011 year 84 million
Peercoin 2012 year upper bottom line is absent
NXT 2013 year 1 billion
42coin 2014 year 21 million
Ethereum 2015 year upper bottom line is absent
Zcash 2016 year 21 million
Deeponion 2017 year 25 million

At the moment, the most popular are Bitcoin,
Ethereum, and Ripple (Table 2). Essentially, these are
all different types of cryptocurrency. Bitcoin is based
on blockchain technology. Ripple has its own system.
Ethereum is a multifunctional platform based on
blockchain technology. As of November 29, 2018, the
market capitalization of cryptocurrency in the world
amounted to $ 9,184,235,808,826, while 75% of this
amount falls on the top 10 leaders in the rating of digital
currencies. According to the World Economic Forum
in Davos, Ukraine entered the top 14 of the leading
countries of the blockchain (manufacturing techniques
and cryptocurrency transactions).

Table 2
Top-5 leaders of the rating of cryptocurrency in 2018

№ Currency Price Capitalization Changes (24 h.)
1 Bitcoin 4250,1$ 73 946 584 628$ +5.9756%
2 Ripple 0.3865$ 38 646 850 331$ +3.3146%
3 Ethereum 121.36$ 12 559 784 724$ +6.2325%

4
Bitcoin
Cash / BCC

211.74$ 3 684 013 134$ +3.2475%

5 EOS 3.16$ 3 231 818 774$ +0.9585%

The development of cryptocurrency has led to the
fact that it has become a profitable object for investing
funds. So, new methods and ways of investing appear on
the market, which causes the interest of many investors
and is connected with the lifecycle of cryptocurrency as
an investment (Koval et al., 2018).

The main ways to invest in cryptocurrency: a) speculation
on the course – the purchase of a cryptocurrency and its
further sale; b) mining – the use of powerful computing,
“farm”, in solving complex mathematical problems to
create cryptocurrency; c) cloud mining – the purchase
of computing power for rent; d) ICO – release of
a cryptocurrency, during which you can raise funds for
the development of an investment project.

Baltic Journal of Economic Studies

Vol. 5, No. 2, 2019
The most profitable but at the same time risky

way of investing is ICO, relatively safe and less
profitable – Mining. In comparison, the available
method is speculation on the course. But, to identify
the prospects and risks of using cryptocurrency as an
investment tool, it is necessary to consider the main
advantages and disadvantages of a cryptocurrency.

3. Advantages and disadvantages
of cryptocurrency

The cryptocurrency inventors assert that the usage
of their product is reliable and effective, as evidenced
by the presence of a number of advantages, which
are given in Table 3, but there are also disadvantages
(Amarnath, 2018).

Some features inherent in cryptocurrency are
considered ambiguous. These include decentralization
and anonymity. The problem of decentralization lies
in the lack of control and tracking of the release and
movement of virtual money by users or government
bodies since these operations are a programmed
process embedded in the algorithm (Parashar, 2018).
Anonymity is another controversial issue, which, on
the one hand, increases the attractiveness of the use
of cryptocurrency by ordinary people since it is not
taxed by the state, and on the other, it provides wide
opportunities for the implementation of criminal
activity (Thapar, 2018). The analysis of disadvantages
and ambiguous moments makes it clear that the reverse
side of the coin outweighs the benefits of this currency
unit because it not only provides an opportunity to
simplify the conduct of financial transactions but also
provokes the growth of Internet fraud (Sigler, 2018).

Recently, we have witnessed a sharp increase in
the number of attacks on cryptocurrency using the
capabilities of victims’ computers for cryptocurrency
mining. And alternative currencies also play an
important role in extortion attacks, being the best way
of payment (Higbee, 2018). However, the demand
for cryptocurrency necessitates the development of
methods for combating cybercrime in general and
crypto fraudsters in particular. Thus, researchers

from the University of Cambridge (Orme, 2019) are
investigating methods for combating cybercrime on the
basis of biometric technologies.

However, there are also significant advantages to which,
moreover, is added the possibility of using cryptocurrency
as an investment instrument (Ibrahim, 2018).

4. World experience of using cryptocurrency
On October 22, 2015, the European Court ruled

that Bitcoin should be considered a currency, not
a commodity, at least in terms of taxation. It should be
noted that the decision of the European Court allows for
a divergence of opinion in the EU states on the essence
and regulation of the cryptocurrency. Each country can
have its own opinion on what Bitcoin is – a currency or
а commodity.

In February 2018, the German Finance Ministry
signed a decree according to which Bitcoin is a means
of payment. Cryptocurrency purchases will be subject
to value-added tax. However, the sale of Bitcoin will not
be subject to capital gains tax. Germany now officially
defines Bitcoin as a currency – as stated in the decree
of the Ministry of Finance, cryptocurrency becomes the
equivalent of legal means of payment, as they are used by
transaction participants as an alternative contractual and
immediate method of payment. The manual, published
by the agency on 02/27/2018, distinguishes Germany
from the United States, where Bitcoin is considered the
property for tax purposes. That is, if an American buys
something with the help of Bitcoin, then technically it
is considered as a sale of property and is subjected to
capital gains tax.

In percentage terms, Turkey ranks first in the world
in the number of private owners of digital currencies.
According to statistics, 18% of the population (more
than 14 million people) have certain virtual assets. The
government plans to create a national cryptocurrency.

Saudi Arabia has banned the trade of cryptocurrency.
The government is working on establishing its own
cryptocurrency. They also have a positive attitude to
the blockchain. The Islamic Development Bank uses
financial platforms based on this technology.

Table 3
Advantages and disadvantages of cryptocurrency

Advantages Disadvantages Ambiguous features
- availability of money at any time;
- the cryptocurrency cannot be removed, it does not disappear after
a period of time and always remains with the owner until the owner
uses it;
- lack of commission;
- the emission is realized strictly according to the given algorithm;
- cryptocurrency is independent of the influence of the Central Bank
and the government;
- cryptocurrency is not subject to inflation.

- the impossibility of monitoring and tracking
the movement of Internet currency;
- the impossibility of withdrawal of payment;
- the absence of a single, coordinating trade
organizer;
- doubtful reliability and security of storage
and money transfer operations;
- constant rate fluctuations;
- exchange of virtual currency for real money.

- decentralization;
- anonymity.

Source: based on (Higbee, 2018; Ibrahim, 2018; Orme, 2019; Sigler, 2018)

Baltic Journal of Economic Studies

Vol. 5, No. 2, 2019
At the same time, China banned mining and all

operations with cryptocurrency and announced the
closure of the exchanges. Actually, China quickly found
how to circumvent the taboos on the ICO and continued
to mine and sell cryptocurrency, but through the Hong
Kong markets where this law does not apply.

The most publicity cryptocurrency received in Japan.
By March 2014, the Bank of Japan did not have any plans
to regulate Bitcoin turnover. However, after the collapse
of Mt.Gox, based in Tokyo, the Japanese authorities
announced the need to control this market. Starting from
March 2016, Bitcoin received legal tender status in Japan.

This was the catalyst for the development of
cryptocurrency and the Japanese increased their activity
in the Bitcoin market. Everything can be bought for
the cryptocurrency, and they gradually refuse from
real money. Now with the help of Bitcoin, you can pay
in the largest trade networks and supermarkets. Some
firms have promised to pay employees a bitcoin salary.
The government says that it is important for a transparent
economy, and besides, it is a component of reducing
the negative impact on the environment due to saving
natural resources and reducing waste in the production
of banknotes. Indeed, when calculating cryptocurrency,
it is much more difficult to carry out fraud.

So, regulators in different countries have not yet found
a consensus in determining the legal status of virtual
currency (Ulyanava, 2018). In different countries,
cryptocurrency is considered as various objects, as it is
shown in Table 4.

So, in the majority of states, there is no appropriate
regulation, therefore, the legal regime of cryptocurrency
is not fully defined, and transactions with it are in the
“grey” zone.

In Ukraine, the attitude towards cryptocurrency is
ambiguous. On October 6, the draft law of Ukraine
No. 7183 “On the Circulation of Cryptocurrency in
Ukraine” was provided. But it was not accepted and
handed over for revision, motivating this by the fact
that today the international community has not defined
unique approaches to regulating the circulation of
cryptocurrency. Also, according to Article 99 of the
Constitution of Ukraine, the hryvnia is the monetary
unit of Ukraine. Also in part 1 of Article 192 of the
Civil Code of Ukraine, it is established that the legal
unit of payment obligatory for acceptance at face value
throughout the territory of Ukraine is the currency
of Ukraine – the hryvnia. This is also highlighted by
Article 3 of the Law of Ukraine “On Payment Systems
and Transfer of Funds in Ukraine” (Law of Ukraine
2473-VIII, 2001). At the same time, the draft law states
that it is possible to exchange cryptocurrency not only
for money but also for securities, services, goods, and
so on. This actually equates the program code, which
determines the cryptocurrency in the draft law, to
money. Indeed, in this case, the software code will be
provided with such functions of money as a means of
payment, preservation of value and accumulation. So,
currently in Ukraine, there is not a single law or a sub-
legal regulatory act that would regulate cryptocurrency
transactions. Now two bills have been registered in the
Verkhovna Rada of Ukraine, which are designed to
resolve this issue: Draft Law No. 7183 dated October
6, 2017 “On the Circulation of Cryptocurrency in
Ukraine” (Law of Ukraine 7183-1, 2017), Draft Law
No. 7183-1 as of 10/10/2017 “On Stimulating the
Market of Cryptocurrencies and Their Derivatives
in Ukraine” (Law of Ukraine 7183, 2017). Both bills

Table 4
Worldwide experience in determining the legal status of cryptocurrency

Country
Definition of the legal status

of virtual currency
Tax regulation

USA Property
The property, is taxed in accordance with the rules that apply to property taxation and
capital gains tax.

China Forbidden -
Japan Means of payment Not taxable
Bulgaria Financial asset Cryptocurrency is exempt from VAT in accordance with what currency it is.

France Financial asset
Cryptocurrency revenues are classified as industrial and commercial profits
or non-commercial profits, with the result that the capital gains tax is 19% in addition
to the generalized social contribution (CSG) – 17.2%.

Canada Property right The property, is taxed in accordance with the rules that apply to property taxation.
Great Britain Foreign currency Tax rules for foreign currency transactions.

Switzerland Valuable property
The fact of possession of cryptocurrency should be reflected in the tax declaration,
and property tax is to be paid from its value.

Australia Assets

The mining and exchange of cryptocurrency for commercial purposes in Australia is
considered exchange trading and is subject to applicable taxes. However, for individuals,
there are cases of exemption from taxation of transactions, if cryptocurrency is used
as a payment for goods or services for personal use only.

Russia Highly speculative investment The system of regulation and taxation of cryptocurrencies is not developed.

Source: based on (Duchenko, 2018; Higbee, 2018; Ibrahim, 2018; Orme, 2019)

Baltic Journal of Economic Studies

Vol. 5, No. 2, 2019
determine the need for public administration in the
field of cryptocurrency circulation, the authority of the
regulator to determine the order of creation and activity
of cryptocurrency exchanges, monitor cryptocurrency
transactions, and identify subjects of cryptocurrency
operations (Duchenko, 2018).

Based on the fact that the National Bank of
Ukraine implements monetary policy in the state,
one also needs to obtain an expert opinion from
the National Bank of Ukraine regarding the project.
Therefore, while in Ukraine, Bitcoin and other
cryptocurrencies have not been banned, but they
have not been recognized with money. At the same
time, in Ukraine, many online stores and regular
shopping centres accept cryptocurrency. In Kyiv, for
the first time in the world, they sold an apartment
for the cryptocurrency. According to the interchange
agreement, the property was exchanged for the
Ethereum cryptocurrency. One can also pay in a cafe
using Bitcoin not only in the USA , Germany or
Japan but in several dozens of countries – Estonia,
Denmark, Sweden, Croatia, Belarus.

5. Research of demand
for cryptocurrency in Ukraine

Despite the imperfection of the legal framework, the
cryptocurrency market is constantly developing and
spreading. In order to determine the level of readiness
of the Ukrainian market for the introduction of
cryptocurrency and the demand for it, on the basis of
the Educational and Scientific Institute of Economics
and Management of the Odessa National Academy
of Telecommunications named after O. S. Popov
conducted a study on the knowledge of Ukrainians in
cryptocurrency, their attitude to the advantages and
disadvantages of cryptocurrency, as well as the desire
to join the use of cryptocurrency.

The study was conducted using the questionnaire
method. Respondents were asked to fill out
questionnaires in Google form, in electronic form.

The survey included 450 respondents aged from
17 to 70 years. Among them:
- from 17 to 25 years – 334 respondents, which
amounted to 74.2%;
- from 26 to 45 years old – 107 respondents, which
amounted to 23.8%;
- from 46 to 70 years and older – 9 respondents, which
amounted to 2%.

To the question “Do you know what cryptocurrency
is?” 450 respondents answered that makes up 100%, 2% –
9 respondents did not answer. Of these, 441 respondents
were aware of what cryptocurrency is, accounting for
98%. They did not know what cryptocurrency is –
9 respondents (2%). These respondents did not answer
the questionnaire further.

To the next question: “What is cryptocurrency for
you?” (Figure 1), 441 respondents answered, that makes
up 98%, of which 204 (45.3%) of respondents consider
cryptocurrency primarily as a means of payment (money);
173 (38.4%) respondents consider cryptocurrency
as a means of accumulation. In general, 48 Ukrainians
surveyed (10.7%) perceive cryptocurrency as a means
of speculation. Interestingly, only 16 respondents (3.6%)
perceive cryptocurrency as “all of the above”, as well,
understand its diversity and versatility.

To the question “How did you know about
cryptocurrency?” (Figure 2) 441 respondents answered
that makes up 98%.

According to the survey, the majority of respondents,
namely 186, which is 41.3%, learned about
cryptocurrency in the educational institution where they
study. From our point of view, these are positive trends,
since it is in educational institutions that complete,
comprehensive, and most importantly, high-quality
knowledge is obtained (Stankevych, 2015). A rather
large percentage of respondents – 89 (19.8%) – derive
information about cryptocurrency from the media/
Internet and as much from friends. 77 respondents
(17.1%) learned about cryptocurrency, purposefully
pursuing their own self-development and self-education.
Unfortunately, not a single respondent indicated that

Figure 1. Subjective perception of cryptocurrency by Ukrainians

Source: the author’s calculations

45,30%

10,70%

38,40%

3,60% 2%

Means of Payment(money)

Means of Speculation

Means of Accumulation

All of the Above

Didn’t answer

Baltic Journal of Economic Studies

Vol. 5, No. 2, 2019

the source of its awareness about cryptocurrency is
the company where the respondent works. However,
this is a natural consequence of the lack of a legislative
framework governing cryptocurrency issues.

To the question “Do you use (use) you
a cryptocurrency?” 441 respondents answered that
makes up 98%, of which 45 Ukrainians (10%) that
they have already used or used before cryptocurrency;
76 respondents (16.9%) are going to use cryptocurrency.
This indicates the interest and commitment of potential
cryptocurrency consumers. However, a large number,
320 respondents, accounting for 71.1%, did not use, do
not use and, so far, do not plan to use cryptocurrency.

To the question “ W hat are the drawbacks
of cr yptocurrency, in your opinion, that are
significant?” (Figure 3) 441 respondents answered
that makes up 98%.

Ukrainians consider the possibility of fraudulent
schemes to be the biggest disadvantage of
cryptocurrency; this is exactly the answer given by
248 respondents, accounting for 55.1%. At the same
time, no respondent noticed anonymity as a lack or
threat of a cryptocurrency, despite the fact that most
fraudulent schemes are possible, precisely because of

the anonymity of the cryptocurrency (Orme, 2019;
Sigler, 2018; Thapar, Chandel, 2018).

Also, many respondents – 202 Ukrainians (44.9%)
consider the lack of a legislative base for cryptocurrency
to be a significant disadvantage. A few respondents,
namely 124 (27.6%), consider cryptocurrency
exchange rate fluctuations to be a significant drawback,
and 108 respondents (24%) attribute lack of demand
for cryptocurrency to disadvantages.

To the question “Which of the advantages of
cryptocurrency, in your opinion, are essential?” (Figure
4) 441 respondents answered – that is 98%.

The most important advantage of cryptocurrency,
the majority of polled Ukrainians, 273 people, which is
60.7%, considers its independence from political events
in the state. 209 respondents, 46.4%, believe that the
advantage of a cryptocurrency is the ability to use it
as a reliable means of payment. 113 respondents, 25%
of respondents, consider cryptocurrency anonymity
to be the advantage. 96 respondents (21.4%) believe
that cryptocurrency has a fairly high level of security.
The smallest number of 64 respondents, accounting for
14.3%, considers that the advantage is fluctuations in
the cryptocurrency rate.

19,80%

0,00%
17,10%

41,30%

2%
Mass media/ Internet

Friends, Relatives, Acquaintances

Cryptocurrency is used at the enterprise where I work

Self-development and self-education

Educational institution where I study

Did not answer

Figure 2. Sources of information on cryptocurrency of Ukrainians

Source: the author’s calculations

55,10%

24,00%

44,90%

27,60%

0,00%

10,00%

20,00%

30,00%

40,00%

50,00%

60,00%

The possibility of
fraudulent schemes

Anonymity Insufficient demand Lack of a legislative
base

Exchange rate
fluctuations

Figure 3. The most important, according to Ukrainians’ point of view, disadvantages of the cryptocurrency

Source: processed by the authors

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Vol. 5, No. 2, 2019

6. Conclusions
The position of the cryptocurrency in the world is

ambiguous. Many large countries still recognize it, if not
a means of payment, then a kind of electronic money.
At the same time, many countries are in no hurry to
make conclusions and want to better explore the market
of cryptocurrency and the possibility of its regulation.
At the same time, cryptocurrency is located in the “grey”
zone in the most countries of the world, and regulators,
if not prohibit, at least do not recommend citizens to
invest in such assets.

The research showed that 21.4% of the polled
Ukrainians consider the cryptocurrency anonymity
to be its advantage and no one considers this
a disadvantage. At the same time, the majority of
respondents, 55.1%, see the main disadvantage of the
cryptocurrency – the possibility of fraudulent schemes,
without at all associating it with the anonymity of
cryptocurrency. Despite this, a large number of
respondents (46.4%) consider cryptocurrency a reliable
means of payment and (21.4%) savings with a high level
of security.

The opinion of the respondents towards the
fluctuations of the cryptocurrency rate is unanimous.
Thus, rate fluctuations as an advantage are considered by
14.3% of respondents, and as a disadvantage by 27.6%.

However, the majority of Ukrainians consider
themselves aware of cryptocurrency (98%) and ready

25,00%
21,40% 14,30%

60,70%

46,40%

0,00%
10,00%
20,00%
30,00%
40,00%
50,00%
60,00%
70,00%

Anonymity High security
preservation

Exchange rate
fluctuations

Independence from
political events in

the state

Reliable payment
method

Figure 4. Significant, according to the Ukrainians’ point of view advantages of a cryptocurrency

Source: processed by the authors

for its use (45 Ukrainians, (10%) have already used or
used cryptocurrency, and 76 respondents (16.9%) are
going to use it).

So, the state of scientific and technological
development of blockchain technologies, which are
the basis of cryptocurrency and the state of demand
for cryptocurrency in the Ukrainian market, are ready
for the use of cryptocurrency. For the productive
implementation of cryptocurrency, Ukraine lacks
only the regulatory framework. Despite the different
attitudes towards cryptocurrency, the volume of
transactions with cryptocurrency and its capitalization
is constantly increasing. Therefore, state financial
institutions all around the world cannot continue to
ignore the existence of this global phenomenon; this
is not only economically wasteful but also dangerous
for the country’s economic system. The timeliness of
the project is important for its success, regardless of
the readiness of the legislative base to adopt it. The fate
of cryptocurrency and blockchain technology should
be decided by market needs. Experts believe that the
development of a regulatory framework in this area
will help bring cryptocurrency markets to stability.
The introduction of international experience in using
cryptocurrency in Ukraine, creating its own model of
behaviour that is the most appropriate for our country
will be the first step towards building a transparent and
understandable cryptocurrency market that will lead to
the development of the economy as a whole.

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