ПРАВОВА БАЗА ЕЛЕКТРОННИХ ГРОШЕЙ ТА ЇХ ФУНКЦІОНАЛЬНА РОЛЬ У ФІНАНСОВІЙ СИСТЕМІ

Electronic money has become one of the key elements of the digital economy in the modern era. The development of digital technologies has transformed traditional forms of payment in the financial system, leading to the expansion of cashless transactions. The purpose of the study is to characterize the legal framework of electronic money and determine their functional role in the financial system. The object of the study is the organizational, methodological and technological aspects of strengthening internal control systems through the implementation of modern digital technologies and innovative monitoring tools. Research methods. Using a descriptive-analytical methodology based on secondary data, regulatory documents, corporate reports, and international assessments, the paper evaluates the extent to which digitalization, automation, data analytics, and continuous control mechanisms have strengthened internal control effectiveness. The main hypothesis. Electronic money performs the main functions of money in a digital environment, ensuring faster and more efficient execution of transactions. From a legal perspective, its circulation is regulated by normative acts that define the rules for issuance, use, and storage, with the primary aim of maintaining financial stability, ensuring the reliability of payment systems, and protecting user rights. Present of the main material. Electronic money functions in the financial system both as a means of payment and as a factor that increases economic efficiency by reducing transaction costs, facilitating access to financial services, and accelerating economic circulation. Originality and practical significance. At the same time, risks such as cybersecurity and data protection are becoming increasingly relevant. Conclusions and prospects for further research. As a result, electronic money accelerates the digitalization of the financial system and necessitates the continuous improvement of legal regulation. Overall, the transformation brought about by electronic money is not merely technical in nature, but also reflects broader shifts in how economic relationships are structured and understood in modern society. Its long-term impact will therefore depend on a balanced interaction between technological progress, regulatory development, and societal readiness