Theoretical and methodological substantiation of structural changes in the financial system of Ukraine

Abstract

The importance of changes in the structure of the financial system at the international level is determined by globalization processes and their impact on the state of national financial systems. The problem of understanding the financial system as a set of fields and links has been studied in foreign and domestic scientific literature. The analysis of scientific publications examining the essential issues of the financial system, its subject-object structure and functions made it possible to conclude that there is no common understanding. A clear structurally subordinate system of relations between categories that characterize the evolutionary and/or revolutionary transformations in the structure of the system has been established, namely, discrete changes, dynamic changes, structural changes, and structural transformation. Structural changes can be a prerequisite for the formation of imbalances. But in some cases, imbalances can be justified and necessary, while in others they contain information about the accumulation of problems and increasing risks, and as persistent risks they can be indicators of distortions existing in the economic and financial system. It is noted that the use of blockchain technologies in the financial system resulted in a new form of currency and gave impetus to the formation of decentralized finance. The causes, key risks arising from the emergence of cryptocurrency, as well as crowdfunding platforms that allow financial transactions, including P2P lending, etc., without the participation of financial intermediaries, are also investigated. It is generalized that the financial system of Ukraine should also be considered not only in accordance with traditional approaches, which are covered in detail and widely in scientific publications, but also taking into account current trends in digitalization of financial technologies and the sectoral approach. A comparison of electronic money related to fiat money and cryptocurrency is carried out using the example of bitcoin, one of the most popular currencies. In general, studies were systematized, as well as research materials of international financial organizations, especially the International Monetary Fund. This allowed the systematization and modern classification of money, which is the basis for determining centralized and decentralized finance. In the context of the digital economy, the term financial ecosystem is becoming increasingly popular. As a result, it is possible to conclude about the prospects for further development of the modern financial sector and give the main characteristics, taking into account the division into centralized and decentralized financial systems.