The Impact of Decentralised Financial Technologies on the Modern Financial System of Ukraine: Prospects and Challenges

Abstract

The aim of this study was to assess the impact of decentralised financial technologies (DeFi) on the financial system of Ukraine, in particular on its stability, transparency and integration with international markets. The study used a comprehensive approach that combined an analysis of existing regulations, econometric modelling, and expert interviews. Particular attention was paid to the study of opportunities and challenges arising from the introduction of decentralised technologies, such as blockchain and cryptocurrencies, in the financial sector of Ukraine. The results of the study show that the use of decentralised financial technologies in the financial system of Ukraine has had a significant impact on its functioning. In particular, it was found that DeFi technologies have contributed to increased transparency of financial transactions, reduced transaction costs, and improved access to financial services, especially for small and medium-sized enterprises. The study identified a number of challenges, including the lack of a sufficient regulatory environment and risks associated with the volatility of cryptocurrency markets, which could have a negative impact on the stability of the financial system as a whole. Based on the findings, the study concluded that the integration of decentralised financial technologies into the financial system of Ukraine required further improvement of the regulatory framework and the development of mechanisms to protect against potential risks. In general, the study highlighted the importance of a comprehensive approach to regulating DeFi technologies, which involved the interaction of government agencies, financial institutions, and technology companies. The practical significance of the study of the impact of decentralised financial technologies on the financial system of Ukraine is that its results can be used to develop effective strategies for integrating these technologies into the national economy.