Transformation of the financial system to ensure economic security and national interests in the context of digitalisation

Abstract

Purpose. The purpose of the study is to determine the peculiarities of the process of transformation of the financial system in the context of ensuring economic security and national interests of the state in the context of the digital economy and martial law.

Results. The place of the financial system in ensuring the national interests of the state through its main instruments is determined. The main advantages and threats of the financial system transformation in the context of the digital economy are substantiated. The key reasons for the need to transform the country’s financial system during wartime are identified. The author identifies the main approaches to the transformation of the financial system: strengthening budgetary discipline and rational use of resources; modernisation of the banking system; control over money supply and inflation; strengthening regulatory control; diversification of financial markets; digitalisation of the financial sector; development of financial literacy and protection of investors’ rights; and attraction of international financial assistance. The author substantiates the need to develop digitalisation to improve control over financial flows, counteract financial crimes and ensure transparency of public finances. These results will contribute to the formation of a sustainable financial system capable of maintaining economic security and national interests in wartime.

Scientific novelty. For the first time, the transformation of the financial system under martial law is proposed, which will allow adapting to new conditions, minimising risks, ensuring economic security and preserving the national interests of the state in the context of global digitalisation of the economy; the paradigm of the financial system in ensuring the national interests of the state through its main instruments is improved; the conceptual approach to the transformation of the financial system in the context of digitalisation to ensure national interests in the context of financial security, focused on martial law, has been further developed.

Practical value. The value of the work lies in the development of practical recommendations and strategic approaches to the formation of a comprehensive strategy for the development of the digital financial ecosystem in the context of ensuring economic security and national interests of the country. The results obtained can be used by the public administration, the National Bank of Ukraine, and financial institutions to make decisions on the transformation of the financial system under martial law.