• Home
  • Issues
  • 2019
  • No 4
  • Digitalization and monetary order: problems and prospects of cryptocurrency market regulation


TERRA ECONOMICUS, , Vol. 17 (no. 4),

Since Satoshi Nakamoto’s invention of Bitcoin in 2008, as a reaction to the global financial crisis, discussions about the theoretical and applied value of the innovative decentralized and private money – «cryptocurrencies» – have come a long way. The breakthrough blockchain technology and the prospects for its application attract more and more attention of specialists and the general public, associated with the formation of fundamentally new outlines of a globally integrated and high-tech digital economic system. At the same time, the idea of Bitcoin itself is more likely to cause cautious reactions and fears, primarily from governments and regulatory authorities, which see the spread of cryptographic currencies as a challenge to traditional monetary institutions, including the state monopoly on money. The authors of the article reflect on the problems of cryptocurrency market regulation in the context of this public discourse, which is taking place against the background of growing discontent with respect to the traditional institutions of the monetary and financial system. The official positions of the financial authorities on the development of the «cryptocurrency industry» are discussed. The European – namely, German – experience of regulation of the sphere of cryptocurrency circulation is presented. It is noted that Russian experience differs from that of a number of foreign countries, in which certain approaches to civil law interpretation and the development of adapted norms and rules for interacting with cryptocurrencies have already been formed. Russia still lacks any legal definition as well as clear legislative regulation of cryptocurrencies. The cautious position of Russian regulators is determined by the need for a more thorough study of the economic and legal nature of private digital means of payment in order to prevent risks of financial losses for consumers and eliminate possible threats to the stability of the financial and economic system as a whole. An appeal to the late legacy of Friedrich August von Hayek and his ideas regarding the denationalization of monetary systems will help to clarify the potential dynamics of this situation.
Citation: Dörr, J., Kowalski, O., Nevskiy, S. I. (2019). Digitalization and monetary order: problems and prospects of cryptocurrency market regulation. Terra Economicus, 17(4), 6–22. DOI: 10.23683/2073-6606-2019-17-4-6-22

Keywords: digitalization; decentralization; monetary order; state monopoly on money; Friedrich August von Hayek; legislative regulation of the cryptocurrency market

  • A law on digital rights was enacted (2019). State Duma Committee on State Building and Legislation, March 12 (http://komitet2-10.km.duma.gov.ru/Novosti_Komiteta/ item/18375909). (In Russian.)
  • Ammous, S. (2018). The Bitcoin Standard: The Decentralized Alternative to Central Banking. Hoboken, New Jersey: Wiley.
  • Any rule on Bitcoin maut be glibal, Germany’s central bank says (2018). Reurets, January 15 (https://www.reuters.com/article/us-bitcoin-regulations-germany/any-rule-onbitcoin-must-be-global-germanys-central-bank-says-idUSKBN1F420E?il=0).
  • Bank for International Settlements (2015). Digital Currencies. November. (https://www. bis.org/cpmi/publ/d137.pdf).
  • Basse, T. (2003). Internetgeld und wettbewerbliche Geld- und Währungsordnungen. Frankfurt a.M.: Peter Lang.
  • Binswanger, M. (2015). Geld aus dem Nichts. Wie Banken Wachstum ermöglichen und Krisen verursachen. Weinheim: Wiley-VCH.
  • Butenko, E. D. (2014). Bitcoin. State and prospects for cryptocurrency development. Finansy i kredit, (23), 44–47. (In Russian.)
  • Collins, M. (1969). Money and Banking in the UK: A History. London: Croom Helm.
  • Demsetz, H. (1969). Information and Efficiency: Another Viewpoint. Journal of Law and Economics, 12(1), 1–22.
  • Deutsche Bundesbank (Hg.) (2018a). Zahlungsverhalten in Deutschland 2017. Frankfurt a.M.
  • Deutsche Bundesbank. (2018b). Eröffnungsrede. 4 Bargeldsymposium der Deutschen Bundesbank, February 14 (https://www.bundesbank.de/de/service/mediathek/videos/ eroeffnungsrede-633988).
  • Dewey, J. (Ed.) (2019). Blockchain & Cryptocurrency Regulation 2019. London: Global Legal Group, 479–487.
  • Dörr, J., Kowalski, O. (2018a). Entnationalisierung durch die Brieftasche? Frankfurter Allgemeine Zeitung, October, 19, (243), 18.
  • Dörr, J., Kowalski, O. (2018b). Vom Tal auf die Insel? Vom kalifornischen Liberalismus zur Sozialutopie Seasteading. Aus Politik und Zeitgeschichte, 68(32–33), 16–21.
  • Dörr, J., Goldschmidt, N., Schorkopf, F. (Hg.) (2018). Share Economy. Institutionelle Grundlagen und gesellschaftspolitische Rahmenbedingungen. Tübingen: Mohr Siebeck.
  • European Banking Authority, European Securities and Markets Authority, European Insurance and Occupational Pensions Authority (2018). Warning: ESMA, EBA and EIOPA warn consumers on the risks of Virtual Currencies (https://www.esma.europa.eu/sites/default/files/library/esma50-164-1284_joint_esas_warning_on_virtual_currenciesl.pdf).
  • European Central Bank (2015). Virtual currency schemes – a further analysis. February (https://www.ecb.europa.eu/pub/pdf/other/virtualcurrencyschemesen.pdf).
  • European Central Bank (undated). What is TARGET Instant Payment Settlement (TIPS)? (https://www.ecb.europa.eu/paym/target/tips/html/index.en.html).
  • Friedman, M. (1960). A Program for Monetary Stability. New York: Fordham University Press.
  • Germany has recognized Bitcoin as a legal payment instrument (2018). ForkLog, March 2 (https://forklog.com/germaniya-priznala-bitkoin-zakonnym-platezhnym-sredstvom/). (In Russian.)
  • Gorda, A.S ., Gorda, O. S. (2019). Cryptocurrencies as a new element of the global financial system. Scientific Notes of V.I. Vernadsky Crimean Federal University. Economics and Management (Uchenye zapiski Krymskogo federalnogo universiteta imeni V.I. Vernadskogo. Ekonomika i upravlenie), 5(1), 10‒22. (In Russian.)
  • Hayek, F. A., von. (1976). Choice in Currency: A Way to Stop Inflation. London: Institute of Economic Affairs, 9–44.
  • Hayek, F. A., von. (2011). Entnationalisierung des Geldes. Eine Analyse der Theorie und Praxis konkurrierender Umlaufsmittel (1976), 129–254 / In: A. Bosch, R. Veit, V. VeitBachmann (Hg.) Entnationalisierung des Geldes. Schriften zur Währungspolitik und Währungsordnung. Tübingen: Mohr Siebeck.
  • Information of the Bank of Russia of January 27, 2014 “On the use of ‘virtual currencies’, in particular Bitcoin, when conducting of transactions” (2014). Vestnik Banka Rossii, (11), 22. (In Russian.)
  • Information report of the Federal Financial Monitoring Service on February 6, 2014 “On the use of cryptocurrencies” (2014). Rosfinmonitoring (http://www.fedsfm.ru/news/957). (In Russian.)
  • Kerber, M. C. (2014). Den Bock zum Gärtner machen? – Eine ordnungspolitische Hinterfragung der Bankenunion. ORDO – Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft. Stuttgart, 65, 75–98.
  • Koenig, A. (2019). Die dezentrale Revolution. Wie Bitcoin und Blockchain-Technologie Wirtschaft und Gesellschaft verändern. München: FinanzBuch Verlag.
  • Küfner, R. A. (2018). Das Krypto-Jahrzehnt. Was seit dem ersten Bitcoin alles geschehen ist – und wie digitales Geld die Welt verändern wird. Kulmbach: Börsenbuch Verlag.
  • Kuznetsov, Yu. (2018). Justice without law: legal status of cryptocurrency in a bankruptcy case. Economic Policy, 13(6), 122–135. (In Russian.)
  • Letter of the Federal Tax Service on October 3, 2016, № OA-18-17/1027 “On measures to monitor the circulation of cryptocurrencies” (2016). 112buh. Information portal of Russian accountants (http://112buh.com/resursy/zakonodatel-stvo/pis-ma/fns/omerakh-po-osushchestvleniiu-kontrolia-za-obrashcheniem-kriptovaliut/). (In Russian.)
  • Luhmann, N. (2017). Einführung in die Systemtheorie. Heidelberg: Carl Auer Verlag.
  • Mason, P. (2016). Postcapitalism. A Guide to Our Future. London: Penguin.
  • Meyer, D. (2016). Verdeckte Staatsfinanzierung in 19 Euro-Staaten. Wirtschaftswoche, 20, Februar (https://www.wiwo.de/politik/europa/denkfabrik-verdeckte-staatsfinanzierung-in-19-euro-staaten/12947078.html).
  • Nakamoto, S. (2008). Bitcoin: A Peer-to-Peer Electronic Cash System. Bitcoin Foundation.
  • Oehler, A. (2017). Infos für den Schwarm: Werden Crowdinvesting-Kleinanleger mit VIBs gut informiert? Eine empirische Untersuchung. Im Auftrag des Ministeriums für Ländlichen Raum und Verbraucherschutz Baden-Württemberg. Stuttgart, Dezember (https:// www.verbraucherportal-bw.de/site/pbs-bw-new/get/documents/MLR.Verbraucherportal/Dokumente/Dokumente%20pdfs/Forschung/Abschlussbericht%20Crowdinvesting%20MLR%20CCMP%2020171206%20Oehler.pdf).
  • Omlor, S. (2017). Geld und Währung als Digitalisate. Juristenzeitung, 72, 754–763.
  • Press Service of the Bank of Russia (2017). On the use of private “virtual currencies” (cryptocurrencies). Information on September 4, 2017 (https://www.cbr.ru/press/ pr/?file=04092017_183512if2017-09-04T18_31_05.htm). (In Russian.)
  • Raval, S. (2017). Decentralized application. Harnessing Bitcoin’s blockchain technology. Saint Petersburg: Piter Publ. (In Russian.)
  • Sarratsin, T. (2015). Europe does not need Euro. Moscow: AST Publ. (In Russian.)
  • Schmölders, G. (1962). Geldpolitik. Tübingen: Mohr.
  • Schüller, A. (2015). Europäische Bankenunion in einem interventionistischen Ordnungsmilieu. Ordnungspolitische Anmerkungen zu ‚Stairway to Heaven‘ oder ‚Higway to Hell‘? Eine Einschätzung der Europäischen Bankenunion von Uwe Vollmer S. 147–174) des vorliegenden ORDO-Jahrbuchs Bd. 66, 175–192 / In: ORDO – Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft. Stuttgart, 66 (1).
  • Seiche, F. (1997). Währungskonkurrenz und Notenbankfreiheit. Möglichkeiten einer wettbewerblich organisierten Geldverfassung? Marburg: Tectum Verlag.
  • Soeteman, K. (2019). Kryptowährungen für Dummies. Weinheim: Wiley.
  • Svon, M. (2015). Blockchain. New Economy Scheme. Moscow: Olymp-Business Publ. (In Russian.)
  • Tagesschau (2018). EZB darf Staatsanleihen kaufen. Stand: 11.12 (https://www.tagesschau.de/wirtschaft/ezb-eugh-staatsanleihen-101.html).
  • Tammer, S. (2018). Which innovations for Germany does the law on payment services supervision bring? WINHELLER Blog, April 4 (https://winheller.com/blog/ru/novovvedenija-zakon-o-nadzore-za-platezhnymi-uslugami/). (In Russian.)
  • The Central Bank has called cryptocurrencies a high-tech financial pyramid (2019). ForkLog, October 1 (https://forklog.com/v-tsb-rf-nazvali-kriptovalyuty-vysokotehnologichnoj-finansovoj-piramidoj/). (In Russian.)
  • The decision of the German court raises questions about the legal status of Bitcoin (2018). Bits.media. Kriptovalyuty i blokcheyn po-russki, Oktober, 25 (https://bits.media/reshenie-nemetskogo-suda-podnimaet-voprosy-o-pravovom-statuse-bitkoina/). (In Russian.)
  • The German government has established taxation procedures for the digital currency (2018). GOLDEN ISLAND. Klub svobodnykh investorov, March 2 (https://golden-island. net/nalog-na-kriptovalyutu-v-germanii/). (In Russian.)
  • Valovaya, T. D. (2018). Cryptocurrencies and Blockchain technology are the key attributes of the new socio-economic system. Bankovskoe delo, (5), 8–15. (In Russian.)
  • Vinya, P., Keysi, M. (2017). The age of cryptocurrency: How Bbitcoin and the Blockchain are challenging the global economic order. Moscow: Mann, Ivanov i Ferber Publ. (In Russian.)
  • Voronin, D. A., Makarevich, M. L. (2018). World experience in the legal regulation of cryptocurrencies. Innovatsionnaya ekonomika: perspektivy razvitiya i sovershenstvovaniya, (8), 63–67. (In Russian.)
  • Zhalinskiy, A., Rerikht, A. (2001). Introduction to the legal system of Germany. Moscow: Spark. (In Russian.)
Publisher: Southern Federal University
Founder: Southern Federal University
ISSN: 2073-6606