FINANCIAL INSTRUMENTS OF DIGITAL DEVELOPMENT

Abstract

In today's conditions, the infrastructure of the world economy and its intensive development are inextricably linked with digital technologies, which contribute to forming a new technological order that affects various spheres of activity. Digitization significantly changes the vector of economic development on the world stage due to reduced costs for the collection, storage, and processing of received data, the shortening of technological chains, and the introduction of effective technologies. The given arguments emphasize the study's relevance, which examines modern financial instruments that allow for the development of the digital space.

The publication aims to research the advantages of digital development, analyze the current state of funding in the field, and identify the main financial instruments in demand.

The results. The article explores issues related to the definition of the leading financial instruments in demand in the field of digital development, taking into account modern trends in the digital space. It was noted that the need for digital development and the influence of European and world trends became the driving force for digital transformations in Ukraine. Sources and directions of domestic financing in digitization and digital transformation have been studied. The essence of the categorical concept of digital economy is defined. It is substantiated that many solutions and services represent the modern industry of financial technologies. The main financial mechanisms and trends that determine the development of the financial and technological industry in the digital space are defined. The necessary conditions to ensure the implementation of financial mechanisms for digital development in Ukraine are indicated. It has been proven that the effective implementation of financial mechanisms is possible only to ensure a high-quality legal field for the development of the digital space, which is provided by legal instruments.

Conclusions. In the modern digital space, prerequisites have been created for changing market participants' business models, further development of the financial and technological sphere, and expansion of already-formed ecosystems. The functioning of the digital system for implementing financial instruments is possible only under the adoption of timely legislative frameworks that correspond to modern trends in the development of digital space.