Monetary Relations Transformation in the Digital Economy

Abstract

The digital economy influences all socioeconomic life components. Monetary relations are also changing rapidly due to introduction of digital technologies. There are many causes of these changes. Ones are uneven in different countries; ones are influenced by both the internal environment of the country and globalization processes. The digital economy needs changes in the monetary system and one generates these changes itself. New-type companies (fintech companies) are introducing innovations that are capable of increasing the number of subscribers of money relations and accelerating the circulation of money in the economy. But this accelerating will be offset by the micro and small businesses growth. In some areas, competition between fintech companies and traditional banks will increase. Such competition has already exists in the payments and money transfer sector, and financial services consumers will benefit from it. Cryptocurrencies and other surrogate money will not affect monetary circulation globally, either today nor in the near future. Currency transactions will be simplified and made more accessible through new technologies and business models. This is particularly true for the population and small businesses. New financial instruments and new technologies will create new risks. Significant amounts on cybersecurity would need to be provided by the financial relations participants.