THE ROLE OF DIGITAL CURRENCIES IN INCREASING THE COMPETITIVENESS OF FINANCIAL COMPANIES ON THE UKRAINIAN PAYMENT SERVICES MARKET

Abstract

The article provides a comprehensive analysis of the role of digital currencies in enhancing the competitiveness of financial companies operating in the Ukrainian payment services market under conditions of accelerated digital transformation. It is argued that digital currencies, including central bank digital currencies (CBDC) and private tokenized payment instruments, represent a significant technological driver capable of reducing transaction costs, increasing the speed and security of payments, improving transparency, and expanding financial inclusion. The study reviews conceptual approaches to defining digital currencies and highlights their potential to reshape the competitive dynamics between traditional banks, non-bank financial institutions, and global technology companies whose influence on the Ukrainian market is steadily increasing. Particular attention is devoted to the regulatory and strategic role of the National Bank of Ukraine, which oversees the development of the e-hryvnia project and formulates regulatory frameworks for the integration of virtual assets and innovative payment solutions into the national financial infrastructure. The article outlines key challenges that restrict the practical implementation of digital currencies, including regulatory gaps, cybersecurity threats, limited technological readiness of certain market participants, and competition posed by international digital platforms. At the same time, the research identifies a set of promising directions for the development of digital currency ecosystems in Ukraine, such as the modernization of regulatory standards, the expansion of secure blockchain-based infrastructures, the creation of interoperable payment mechanisms, and the strengthening of cooperation between banks, FinTech companies, and state institutions. The findings demonstrate that digital currencies have substantial potential to increase the operational efficiency, market sustainability, and innovative capacity of Ukrainian financial companies, enabling them to improve their competitive positions in both domestic and cross-border payment markets.