The urgency of cryptocurrency in the period of Covid 19 and new challenges of financial globalization

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Date
2022
Journal Title
Journal ISSN
Volume Title
Publisher
Ivane Javakhishvili Tbilisi State University Press
Abstract
New technologies - run the process of transformation change in the global economy, including the process of exchanging goods, services and assets. An important development in this process was the creation of a virtual currency. The virtual currency industry is in the begining stage of development. The related legislative and supervisory framework varies according to countries and mostly is still in the process of study. Virtual currency is defined as any type of digital unit that is used as an exchange and account unit. Cryptocurrency is one type of virtual currency. The activities connected to cryptocurrencies in terms of both earning and trading is increasing worldwide and Georgia in this regard is not an exception either. In addition, the Georgian legislation does not regulate the activities related to the virtual currency and the cryptocurrency is not a legal way of payment. It is characterized with high price fluctuations; hence the probability that the consumers may suffer financial losses is high. Virtual currencies offer a lot of potential benefits in terms of speed and efficiency of payments and transfers (especially abroad). The system is absolutely decentralized and transparent. At the same time, virtual currencies bear significant risks related to money laundering, terrorism financing, tax evasion and fraud.
Description
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Keywords
ვირტუალური ვალუტა, კრიპტოვალუტა, ბლოკჩეინი, ფინანსური სტაბილურობა, მონეტარული პოლიტიკა
Citation
International Scientific Conference Dedicated to the Establishment of the University and the 100th Anniversary of the Faculty of Economics and Business “Covid 19 Pandemic and Economics”, Tbilisi, 2022, pp. 100-106
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