DIGITAL MONEY: ADVANTAGES AND RISKS FOR THE ECONOMY

The article examines the essence of electronic money as an economic and legal phenomenon. The relevance of the introduction of innovative technologies in the financial development of modern society, which affect aspects of human life, has been determined. Blockchain technology is highlighted as one of the components of key innovations in the field of digital money. The impact of blockchain on the country’s payment system is substantiated. Blockchain functions are revealed, which open new horizons for the applications of technologies in various fields, making the world more efficient, safer and decentralized. Advantages and disadvantages of electronic money are defined and analyzed. The need to implement measures that would contribute to the mass spread of electronic money in Ukraine is substantiated. The prospects for the economy, which blockchain opens up for the development of decentralized business models, for changing the sphere of finance, are analyzed.Therefore, digital technologies are becoming a necessary cjmponent for the development of the modern economy and financial system. However, their implementation must take into account risks and ensure a high level of security and stability of the financial system. For example, the application of blockchain technologies can significantly simplify and ensure the security of financial transactions. It is also worth exploring the possibilities of using artificial intelligence and data analytics to improve financial decision-making. It is important to actively research and develop new technologies and approaches to ensure the safety and stability of the financial system in this new digital world.