CRYPTO FINANCE IN THE PUBLIC SECTOR: EUROPEAN AND TRANSATLANTIC DIGITAL TRENDS AND PRICE VOLATILITY RISKS
DOI:
https://doi.org/10.32782/2786-8273/2026-14-17Keywords:
cryptofinance, public sector, cryptoassets, blockchain technologies, stablecoins, digitalization, financial instruments, price risks, financial stability, risk-based regulation, international market, European-Transatlantic digital trendsAbstract
Introduction. The rapid spread of crypto-assets, blockchain technologies, stablecoins and decentralized financial mechanisms is transforming the architecture of financial relations and creating new challenges for the public sector. The integration of crypto-finance contributes to increasing the transparency of financial flows, automating operations and modernizing financial administration, while generating risks of price volatility, cyber threats and regulatory uncertainty. This highlights the need for a systemic approach to the integration of crypto-finance into the public financial space, ensuring a balance between digital innovations, financial stability and regulatory control. Purpose. The purpose of the study is to provide a theoretical and methodological justification for the role of crypto-finance in the transformation of the public sector, identify the opportunities and systemic risks of their integration and determine practice-oriented directions for improving the regulatory environment, taking into account modern European-transatlantic digital trends. Methods. The methodological basis of the study is the systemic, institutional, functional, information-analytical and risk-oriented approaches that provide a comprehensive study of crypto-finance in the public finance system. The work uses methods of scientific abstraction, analysis and synthesis, logical generalization and systematization, as well as comparative and institutional analysis. Results. Crypto-finance is conceptualized as a segment of the digital financial space, integrated into the public finance system and formed by the interaction of digital financial instruments, blockchain technologies and institutional and regulatory mechanisms. The functional ambivalence of crypto-finance is established: the potential for increasing transparency, efficiency and adaptability of public financial management is combined with financial, systemic, institutional and regulatory and technological risks. The transformation of crypto-asset price volatility from a market phenomenon into a systemic risk factor for budget planning, financial stability and monetary regulation is substantiated. The systematization of European-transatlantic approaches has shown the formation of a common regulatory vector focused on strengthening financial monitoring, tax control and international coordination while preserving the potential of digital financial innovations. Conclusion. Effective integration of crypto-finance into the public sector requires a transition from fragmented regulation to an adaptive risk-oriented management model. A combination of macroprudential supervision, digital transaction control, blockchain analytics, financial monitoring and international regulatory coordination is proposed. It is advisable to further implement European regulatory standards, mechanisms for automated exchange of tax information and strengthen the cyber resilience of digital financial infrastructure.
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