Informatica Economică vol. 26, no.

3/2022 37

Study of Development Trends and Application Risks of Cryptocurrency

and Blockchain Technologies in the Digital Environment
Alovsat Garaja ALIYEV
Institute of Information Technology of Azerbaijan National Academy of Sciences, Baku,
Azerbaijan
[email protected]; [email protected]

The paper is devoted to the study of the formation and development trends of cryptocurrency
and blockchain technologies in the digital economic environment, as well as the risks and
dangers of their application. According to the features of classification, the main features of
virtual currencies have been explained. The risks and dangers that may arise with the regular
use of cryptocurrency and blockchain technologies emerging in the digital environment were
considered. As a result of the transformation of digital technologies, the study of the problems
of formation and development of cryptocurrencies and blockchain technologies is one the
urgent issue. As a result of improving the management of economic and business processes on
the basis of modern ICT, a digital economic environment with new non-traditional
technological features is being formed. The possibilities of applying cryptocurrency and
blockchain technologies in economic structures and processes in the new economic
environment have been explored. The security features of blockchain technology and the
mechanism of operation of the cryptocurrency have been explained. The differences between
cryptocurrency and traditional money have been explained, and the essence of different
approaches to cryptocurrencies in the international arena has been analyzed. Statistical
analysis of scientific publications on cryptocurrencies has been conducted. The capitalization
dynamics of cryptocurrency are presented. The rating of cryptocurrencies is shown according
to the level of capitalization. The dynamics of price changes in Bitcoin are given. The structural
content of cryptocurrencies and blockchain technologies was explained, and their application
in economic operations was studied. The risks and dangers of cryptocurrency in the digital
environment were analyzed. The mechanism of their operation in business and financial
operations was explained. The dangers of the use of cryptocurrencies in the existing traditional
financial system have been identified. The problems of legal regulation of cryptocurrencies in
the world have been analyzed. It was noted that although the use of such technologies poses
risks and threats in modern financial markets and cryptocurrency exchanges, they can create
new opportunities and prospects for the future development of the country's economy in the
digital environment. In the 4.0 Industrial Platform in the Digital Environment, some
recommendations have been given for preventing the risks and dangers of using cryptocurrency
and blockchain technologies.
Keywords: Digital transformation, Digital economy, Digitalization, Digital economic
environment, Digital currency, Bitcoin, Cryptocurrency, Blockchain technology, Risks and
dangers of use, Cryptocurrency exchanges
DOI: 10.24818/issn14531305/26.3.2022.04

1 Introduction
In recent decades, modern ICT has created
a digital economic environment with new
development of the economy already covers
all areas of society. With the creation of digital
trading portals in many areas, regional Digital
features, influencing economic and business Trade Hubs [1] are emerging and they are
process management processes. In the new strengthening the economic, business, and
environment, which has both global and financial position of the region. Other relevant
national, and regional characteristics, the measures are being taken to expand foreign
impact of e-business, and e-commerce on the trade operations in this area.
38 Informatica Economică vol. 26, no. 3/2022

The emergence of cryptocurrency pressing issues of our time. For this reason, it
technologies in the digital economy has is important to study the trends in the
created certain difficulties in the traditional formation and development of
business and financial sector. At the same cryptocurrencies and blockchain technologies
time, the digital economy, which is in close and to consider the potential gaps, threats, and
symbiosis with the elements of the existing risks. Currently, the development and use of
financial infrastructure, has created positive various cryptocurrencies are becoming more
trends for a more effective form of the dynamic, and in recent years, these trends
financial sector. The emergence of have significantly affected the development of
cryptocurrency technologies and virtual the digital economy.
currency has encouraged financial The object of research is the characteristics of
institutions, development institutions, and the the application and use of cryptocurrencies in
state to participate in the development of new the new digital environment, which is formed
projects. as a result of the digital transformation of
The development trends and application risks regional and national economies.
of cryptocurrency and blockchain The subject of research is the study of trends
technologies in the digital environment have in the formation and development of
been studied to some extent by some cryptocurrencies and blockchain technologies
researchers [2-10]. with new commodity and currency qualities in
Being one of the first countries in the Asia- the emerging digital environment, as well as
Pacific in terms of cross-border trade has the dangers, risks, and other undesirable
made a positive contribution to further situations created by their use.
improving its position in the field of foreign The methodology and methodological bases
trade in the global arena. It should be noted of the research were systematic approach and
that according to the United Nations Global analysis methods, statistical analysis methods,
Report on Digital and Sustainable Trade 2021 correlation, and component analysis,
[11], Azerbaijan leads the region in Southern synthesis, and generalizations. In the research
and Eastern Europe, the Caucasus, and process, scientific works of many researchers,
Central Asia with a score of 86% according to priorities, laws, other normative-legal acts,
certain criteria. Compared to 2019, in 2021 and methodological materials of relevant
the transparency indicator increased by 7% research institutes, and centers were used in
and achieved maximum results. Azerbaijan studying and generalizing the features of
has made significant progress on the report's theoretical-methodological approaches in the
cross-border paperless trade indicator, an existing field. It is recommended to consider
increase of 33%. The report compares the the results of the study in perspective changes
current situation in the country with previous in the economic life of the country, reforms,
years and provides detailed information on the decision-making processes, economic and
reforms that led to these improvements. business operations, and the development of
One of the key issues is the increasing focus new regulations.
on information, digital, e-economy,
cryptocurrency, blockchain concepts, and 2 Problem statement and research situation
technologies as a result of the widespread use There is a serious need to study the
of digital technologies in recent decades. characteristics of the use of cryptocurrencies
Currently, the opportunities for the and blockchain technologies in the
application of cryptocurrencies and information and digital economy, the
blockchain technologies in the management formation and development trends, as well as
processes of advanced countries are the dangers and risks that arise during their
increasing. Therefore, the issue of coordinated use. The aim of the study was to study these
action for the use of cryptocurrency and problems. To achieve this goal, a
blockchain technology is one of the most comprehensive study of the features,
Informatica Economică vol. 26, no. 3/2022 39

advantages, distinctive features and 3 Classification and main features of

development trends of cryptocurrencies in the virtual currencies
digital economic environment has been set. International financial institutions believe that
In connection with the study of the problem, it 1) cryptocurrency is a virtual currency, 2) a
should be noted that over the past decade, currency with a digital expression of value, 3)
research and discussions on blockchain it can be traded in digital form, 4) a means of
technology and cryptocurrencies around the exchanging or storing value, 5) it has no status
world have attracted serious interest from as a means of payment in any jurisdiction [17].
international financial institutions, the For these reasons, electronic payment
scientific community, and public and private systems, which are relevant in the form of
institutions [12]. These processes are affected virtual currency, cannot replace traditional
by various factors such as global instability of banking systems. The main disadvantage of
economic relations, the dominance of certain virtual currency internationally is its lack of
reserve currencies over national currencies, legal status. Nevertheless, virtual currency is
global digitalization of the economy and the actively bought and sold, stored as fiat on
violation of borders, the crisis of confidence electronic cryptocurrency exchanges, and
in existing financial and payment systems, invested in various projects, including the
and so on. In such a situation, it is difficult to material sphere. Virtual currency can be
study the characteristics of cryptocurrencies converted into almost any world currency by
and trends in the formation and development converting it into traditional currencies on
of blockchain technologies and their electronic exchanges.
application. Research in this area is mainly Classification of virtual currencies depending
aimed at identifying prospects for the on their status, circulation conditions, source
introduction of cryptocurrencies, which are of issue, purpose of use is one of the
digital money and increasing their problematic issues.
sustainability. In principle, the problems of From this point of view, virtual currencies can
the application of cryptocurrencies and the be classified as shown in Figure 1, considering
trends in the formation and development of many key features and characteristics.
blockchain technologies have been studied to However, it should be noted that this
some extent by a number of foreign and classification does not consider the legal
domestic researchers [2, 13-16]. In this aspects of owning a virtual currency.
research, the formation and use of digital In general, some of the main features of virtual
currencies, as well as their normative legal currency can be considered as follows: Virtual
regulation at the global and regional levels are currency is a completely decentralized, secure
involved in the research process. However, digital currency, the creation of which is
there are significant obstacles to solving the controlled by cryptography. Virtual currency
problems that arise in the use of is not issued by central banks and its value
cryptocurrencies. The study of trends in the does not depend on the policy of banks.
formation and development of Unlike ordinary currencies, the prices of
cryptocurrencies and blockchain technologies virtual currencies are based only on supply
is of particular importance for the and demand. Virtual currency is volatile, and
identification of relevant potential the difference between the selling and buying
opportunities in this area. prices of these instruments can vary
significantly even in the short term [17].
40 Informatica Economică vol. 26, no. 3/2022

Virtual currencies according to the

characteristics of the classification

Transaction
protection Level of capitalization Purpose of Exchange form Emission
and use type
anonymity
level Intern Over-
Interm Mic al the-
Large ediate Low count
level ro tradin Limit
level level g on er
(over (from (from level mar Limit ed
Com Con $5 1 0.1 to the emiss Unli
(up Blockc stock ket ed
ple ditio billio billion 1 one- ion of mited
to 5 billion to $ As a hain excha tra a cer emiss
tely nally n) 100 system time
billion US dol mean nge ding ion
ano anon US dol mil mainte emiss tain
lars) s of ion amou
ymo lars) daily nance
nym us lion) (closed nt
paym
ous ent system
operati
ons)

Fig. 1. Virtual currencies according to classification features (compiled on the basis of

analysis of scientific literature)

Although the first virtual currency was another asset. It is an asset created using
Bitcoin (Bitcoin), created in 2009, today there distributed booklet technology. Different
are thousands of alternative virtual currencies cryptocurrencies have different functions.
called altcoins (Ethereum, ripple, litecoin, and Some of them are used for payments, while
others). others are not used. Some are essentially
securities. It would be useful to make some
4 Essence-content features and notes on the classification of cryptocurrencies.
classification of cryptocurrencies The issuer of the central bank's digital
The market has grown rapidly since the currency is the state represented by the central
emergence of Bitcoin, the world's first bank. Issuer assets (Figure 2) include
cryptocurrency, in 2009. There are many tools electronic money (eMoney), unsecured
on the market today, including one based on cryptocurrencies, stake coins, and tokenized
distributed booklet technology. The most assets. 1) Electronic money. It is a digital
common term for such tools is crypto active. alternative to cash issued by a private issuer.
A cryptocurrency is an asset that exists in 2) Unsecured cryptocurrencies.
digital form or is a digital representation of
Informatica Economică vol. 26, no. 3/2022 41

İssuer assets

Steiblcoins Digital money

Unsecured
cryptocurrencies Tokenized assets

Fig. 2. Composition and structure of the issuing assets

It is crypto active, characterized by a lack of digital currencies are available. Ripple is the
security. They are cryptocurrencies that name of both cryptocurrency and distributed
cannot be withdrawn by the issuer. Intended booklet technology (DLT) in which it is
for use as a means of payment only. The most exchanged. The main feature of this system is
common cryptocurrencies in the world are that it allows users to make transfers in both
Bitcoin and altcoins. 3) Staiblcoins are backed electronic and real currencies. In 2018, the
by other assets, unlike altcoins and bitcoins. A number of cryptocurrencies exceeded 1,300.
special system is used to limit the volatility of Cryptocurrencies have nothing to do with the
the exchange rate when it is issued. They may central bank or official bodies. Thus, digital
be used for payment purposes or may currencies allow users to make secure
represent an analogue of a money market fund payments and investments without going to
or another property complex. In this case, the the bank.
security mechanism may be opaque and As a result of the application of algorithms for
incomplete without the necessary legal basis. solving complex mathematical problems,
4) Tokenized assets. These are computer computing power, and other
cryptocurrencies that can be used to secure capabilities are used to generate money in a
certain rights for their owners. They can be virtual environment. Such activity is called
divided into the following types: analogues of mining, and those engaged in this activity are
debt securities, analogues of shares called miners. Users can get their money from
confirming the participation in the capital of brokers (intermediaries) and then use it to
organizations, confirmation of the right to spend or collect their money in a secure way
purchase a particular product or service, etc. through encrypted transactions.

5 The working mechanism of 6 The difference between cryptocurrency

cryptocurrency and traditional money
As noted, cryptocurrencies are digital Unlike traditional payment units, digital
currencies designed to keep exchanges secure money transactions do not carry any personal
and, in most cases, anonymous. They are information. Accounts are always accessible.
based on cryptography, i.e. encryption. Along Traditional accounts can be restricted and
with Bitcoin, the first digital currency, Ripple frozen by the system. Such cases do not occur
Etherium, Blackcoin Litecoin, etc. such as due to the lack of legislation regulating the
42 Informatica Economică vol. 26, no. 3/2022

digital currency. There are no cases of forgery. cryptocurrencies are not recognized as a
Cryptocurrencies are digital and secure. Thus, currency and are not accepted as a means of
unlike traditional money, counterfeiting in payment. In international practice, there are
digital currency is practically impossible. cases when cryptocurrencies are inspected or
There are no or few additional fees. Banks completely banned in order to avoid tax
charge for transactions. Because digital evasion and use in criminal financing.
currencies are exchanged over the Internet and One of the differences between
without the intervention of third parties, there cryptocurrency and traditional money is that it
is usually little or no transaction fee required. is impossible to pay salaries directly in
There are different approaches to cryptocurrency [18]. Rather, it means that it is
cryptocurrencies in the international arena. illegal to pay salaries directly in
The rapid rise of cryptocurrencies compared cryptocurrency. There are two options for
to traditional currencies has forced various doing this: 1) Similar to the stock options paid
countries and official bodies to take to the top management of large companies,
appropriate steps in this direction. Some employees are offered options to acquire a
countries, such as Russia, are preparing to stake in the company after a certain period of
create their own cryptocurrencies. UAE, time.
Kuwait, Bahrain, Saudi Arabia, Indonesia, Tokens only confirm ownership. 2) After
Malaysia, and others. Some countries, such as converting cryptocurrency into money, a part
the United States, have already achieved this. of the employee's salary can be paid as a
Also, in many countries, such as Japan, the bonus. In other words, restrictions can be
United States, and Ukraine, cryptocurrencies removed by additional operations, and in the
are already recognized as legal assets in end, the salary is obtained directly in
official settlements and exchange activities. cryptocurrency with the corresponding
However, the world's approaches to money.
cryptocurrencies are ambiguous. Thus, along
with the rapid development of 7 Statistical analysis of scientific
cryptocurrencies and their rapid rise publications on cryptocurrencies
compared to traditional currencies, there are Due to the different nature of the use and
also dangerous aspects such as tax evasion, application of cryptocurrencies, research
financial flows out of the country, etc. For this articles related to them can also be grouped
reason, despite the growing interest, a number and analyzed by field [14]. Quantitative
of countries are opposed to the digitalization analysis of articles indexed in high-ranking
of currencies. These countries are trying to scientific databases shows that 156 articles in
prevent the spread of cryptocurrency in the field of economics, 125 in the business
various ways. Thus, some countries warn the finance sector, 96 in computer science and
population through propaganda, ie warning information systems, 62 in law, and 14 in
about the dangers of investing in management were indexed in WoS during the
cryptocurrencies. In other countries, study period (Figure 3).
Informatica Economică vol. 26, no. 3/2022 43

Fig. 3. Distribution of scientific articles on cryptocurrencies in WoS by areas of research

(based on an analysis of the scientific literature)

During this period, 269 scientific articles on mathematics, and 16 in agricultural sciences,
computer sciences, 217 in economics, and biological sciences were published in the
econometrics, and finance, 188 in social Scopus database on cryptocurrencies (Figure
sciences, 166 in engineering, 70 in 4).

Fig. 4. Distribution of scientific articles on cryptocurrencies in Scopus by areas of

research (compiled based on an analysis of the scientific literature)

Cryptocurrency exchanges or digital currency digital trading platform that buys and sells
exchanges operate as a place that allows crypto and digital assets. Cryptocurrency
customers to trade cryptocurrency. A trading is an act of buying and selling
cryptocurrency exchange is an organization or cryptocurrencies for profit. Cryptocurrency
44 Informatica Economică vol. 26, no. 3/2022

exchanges can be market makers. They number is growing every year [12]. The total
usually use the spread of offers as a capitalization of cryptocurrencies amounted
commission for services or simply as a to $ 243 billion.
suitable platform for charging fees. Classic According to the conditions specified in the
cryptocurrency exchanges include the most common and popular Bitcoin algorithm,
Chicago Mercantile Exchange (CME), the the maximum amount of its production is
Chicago Board Options Exchange (CBOE), 21,000,000. More than 18 million bitcoins
and the BAKT (New York Stock Exchange) have already been extracted.
regulated cryptocurrency exchanges. Their It is estimated that the total issue of bitcoin
regulators and supported currencies are will end in 2140. Bitcoin is also the most
usually collected from official websites or expensive cryptocurrency. In 2020, it was
blogs [2]. over $ 8,000.
The value of Bitcoin is subject to sharp
8 Capitalization dynamics of fluctuations. In 2017, the price of one bitcoin
cryptocurrency was able to rise from about $ 1,000 to $ 20,000
Despite the fact that there are thousands of (Figure 5).
cryptocurrencies on the stock exchanges, their

Fig. 5. Dynamics of Bitcoin price changes, bln. US dollars (for 2016-2020)

(Source: https://coinmarketcap.com/ru/currencies/ bitcoin/historical-data/-
Compiled according to the source)

There are other cryptocurrencies that are also an element of transaction registration and
equally popular in the cryptocurrency market property exchange. This factor allows us to
today. They are also required by many users. say that Ethereum has great growth potential.
The first seven popular cryptocurrencies are Ethereum currently has a market
shown in Table 1 [12]. As can be seen from capitalization of 8.2% of total capitalization,
Table 1, Bitcoin has the largest capitalization second only to bitcoin. The top three are
level of $ 163 billion, accounting for virtually closed by a reliable and cost-effective
70% of the total cryptocurrency capitalization cryptocurrency called XRP or Ripple. Its
of $ 243 billion. After Bitcoin, the leading capitalization is more than $ 8 billion. Unlike
cryptocurrency is Ethereum. Unlike Bitcoin, all other cryptocurrencies, it has an issue of
Ethereum is not only a means of payment but 100 billion units.
Informatica Economică vol. 26, no. 3/2022 45

Table 1. Rating of cryptocurrencies by capitalization level (2020)

(Source: https://coinmarketcap.com/ru/currencies/ bitcoin/historical-data/)

Market Price per Volume of Maximum

№ Name capitalization, unit, USD turnover in 24 emission
billion US dollars hours, billions
dollars of US dollars
1 Bitcoin (BTC) 163, 0550 8 873,17 41,6304 21 000 000
2 Ethereum (ЕTH) 20, 9968 189,32 14, 9138 _
3 XRP 8, 6728 0,19660 1, 9565 100 000 000
7 000
4 Tether 6, 3765 1,00 47,6374 -
5 Bitcoin Cash 4, 2538 231,11 3,4276 21 000 000
6 Bitcoin SV 3, 4193 185,79 1,9159 21 000 000
7 Litecoin 2, 7305 42,19 4,6495 84 000 000

For a more detailed analysis and assessment cryptocurrency market capitalization can be
of the dynamics of cryptocurrency given as shown in Figure 6 [12].
capitalization, the dynamics of

Fig. 6. Capitalization dynamics of cryptocurrency

Source: https://coinmarketcap.com/ru/currencies/ bitcoin/historical-data/
Compiled according to the source)

9 Cryptocurrencies and blockchain formation of alternatives, DLT began to be

technology used to generalize them. DLT technology
Recently, blockchain technology has also allows any database to be stored in multiple
become a global phenomenon. Blockchain sources, almost all users, rather than in a
technologies and digital currencies, which are single source. In this case, any operation is
met with interest by countries, international performed by all users, and after execution,
organizations, and giant companies, are the information is updated in each directory.
widely studied. New mechanisms are being Even if any user changes the information, the
formed for the application of these system checks this indicator with the
technologies. indicators of other users and does not allow
Distributed ledger technology (DLT) is the operation.
known with Blockchain. Although blockchain Blockchain technology is one of the
was created in the beginning, with the applications of DLT. Literally means block
46 Informatica Economică vol. 26, no. 3/2022

chain. Blockchain technology is a booklet that principle of operation of cryptocurrency in the

records various types of transactions information economy, as well as the
automatically and online. The history of this opportunities and prospects of its use in the
technology dates back to 2008, when the first national economic and financial system, to
cryptocurrency, Bitcoin, was created. develop relevant recommendations [12]. As a
Features of blockchain technology. result, the identification of innovative features
Blockchain is a technology that does not have of cryptocurrencies and prospects for their
a centralized control system. Copies of the application has become a necessary and
recorded data are stored on the computers of urgent issue.
miners around the world and form a block There is a need for research on the
chain. When a new operation is performed, development of foreign legislation in the field
the previous data is not deleted and added to of combating criminal activity using
the existing block chain. Because the data is cryptocurrency [19]. For the normal
copied and stored in the memory of all functioning of law enforcement agencies
computers, it is not possible to delete them at around the world, it is necessary to consider
the user level. The information collected here the problems of the legal regulation of
is accessible to users. However, other cryptocurrencies.
outsiders do not have access to the The number of crimes related to the
information. Therefore, the safety of the widespread use of cryptocurrency has
technology is guaranteed. increased. Hackers stole $ 1.7 billion worth of
One of the advantages of the new technology cryptocurrency in 2018. Of this, 960 million
is that there is no need for intermediaries in were obtained from cryptocurrency exchanges
the implementation of operations. Thus, the and payment systems. The number of such
two parties wishing to conduct an operation cases has increased 3-4 times compared to
between them can carry out the operations previous years. 56% of cryptocurrency thefts
they want without the intervention of a third took place on the exchanges of South Korea
party or organization. and Japan. The biggest thefts of 2018 were: $
532 million from Coincheck; $ 60 million
10 Risks and threats of cryptocurrency in from the Zaif; $ 40 million from Coinrail; $ 31
the digital environment million from Bithumb [19].
The widespread use of cryptocurrencies is At the 13th meeting of the G20 (Buenos Aires,
increasingly threatening the existing Argentina) in 2018, the Declaration "Creating
traditional financial system. This confirmed a consensus for fair and sustainable
the views of international financial development" was adopted. It was noted that
institutions on the creation of conditions for the regulation of cryptocurrency markets in
the gradual expansion of the crypto-economy. the context of an open financial system is
The globalized payment mechanism will important for sustainable development. In
allow for more efficient cross-border transfers 2020, the Fifth EU Directive entered into
and the development of the information force. New rules and tightened the
economy. It should be noted that there is still requirements for cryptocurrency platforms
no unified approach and methodology in the have been developed by this directive.
world for the recognition of virtual currency Cryptocurrency exchanges, cryptocurrency
as a means of payment and the regulation of wallet providers, and data providers were
its circulation. required to register with a local regulator,
The future development of cryptocurrency in submit suspicious activity reports and conduct
the world requires a deeper understanding of customer due diligence [19].
the nature and risks of its use, as well as the The issues of protection of electronic
definition of its role in the modern economic information in the information system from its
system. For this reason, the main goal of many illegal users are related to changes in the
researchers is to study in detail the nature and interaction between people and organizations.
Informatica Economică vol. 26, no. 3/2022 47

The fight against terrorism and money cryptocurrencies for fear of hacking and
laundering is now significantly more difficult. anonymity. Experts believe that digital assets
It is very important for organizations that can are not as dangerous as a means of financing
secretly prepare nuclear, radiation, chemical, international terrorism. Rand Corporation's
and biological terrorist acts to be able to get research shows that none of the known
money from non-transparent sources without cryptocurrencies can meet all the financial
the attention of governments. needs of terrorist organizations, such as
Digital currencies are also used by such anonymity, usability, security and reliability.
groups and networks. They use modern Bitcoins can be attractive to use in
information technology to conduct complex fundraising. There is also evidence that
financial transactions in the digital space terrorist organizations can use
using cryptocurrency. The creation of bitcoins cryptocurrencies for this purpose. Some
as a virtual analog of cash has implemented experts say the predictions of terrorists' use of
the idea of direct payments among Internet cryptocurrencies are exaggerated. They
users, which virtually eliminates the believe that terrorists are not ready to use new
possibility of tracking the transfer of funds technologies to organize criminal proceeds.
from one person to another. The anonymity of Analyzes show that as the use of
the Bitcoin system makes it possible to almost cryptocurrencies expands and their
eliminate the dependence of the shadow operational infrastructure develops, virtual
economy in the world on legitimate economic currency will become increasingly used to
structures. finance terrorism [4]
A number of cryptocurrencies (Dash, Monero, Terrorist organizations have sophisticated
Zcash, etc.) provide good anonymity. In order information technology. They also use
to increase efficiency and conceal their cryptocurrencies in their activities. Terrorist
criminal activities, terrorist organizations try activities can also be funded by individual
to manage their socio-political and economic states and organizations in their own interests.
systems on the basis of a distributed registry. Terrorists are increasingly using electronic
Criminal organizations used sophisticated payment systems and cryptocurrencies. They
cyber tools to attract cryptocurrency use these opportunities to transfer funds from
donations from all over the world. The results certain countries and organizations that
of the operation have shown that the activities support the global terrorist network.
of various terrorist groups have been adapted Observers note the widespread use of
to the modern conditions of the cyber era. encrypted Internet communications,
Each group uses cryptocurrency and social cryptocurrencies, remote control of terrorist
networks to raise funds in the interests of activities and its financing schemes. The use
terrorist organizations. U.S. authorities have of cryptocurrencies by terrorists can
seized millions of dollars, and more than 300 sometimes outweigh state and interstate
cryptocurrency accounts, and blocked several reactions. Because the attitude of states to this
criminal websites and Facebook pages under tool is unstable. They are slowly adapting to
a court order. Experts also use sites linked to new cyber threats in terms of national
terrorist organizations to detect and identify legislation, organizational and technical tools
gray schemes that collect donations in and methods.
bitcoins.
A report published in 2019 by the Center for 11 Result and suggestions
International Security and Defense Policy of The diversified and sustainable development
the American corporation RAND noted the of the regional economy, including cyber
technical and organizational difficulties of resilience, is conditioned by the current state
terrorists in the use of cryptocurrencies and of ICT infrastructure and modern information
identified potential threats. According to the technologies, as well as the technical and
center, terrorists sometimes refuse to use technological sovereignty of the region [20].
48 Informatica Economică vol. 26, no. 3/2022

Systematization and considering the server architecture. Informatica

formation and development trends of digital Economică, 2018, vol.22, no.2, pp.35-42.
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Alovsat Garaja Aliyev PhD in economics, associate professor, born January

8, 1956. Head of department of the Institute of Information Technology of
Azerbaijan National Academy of Sciences. He has a total number of 270
scientific articles and 5 books. It has more than 30 scientific publications
indexed in the Web of Sciences (WOS), Scopus and other international
databases. Alovsat Aliyev continues to conduct scientific research works and
deals with issues such as characteristics of ICT application in economical
processes and management authorities, information problems in social economical systems,
scientific-theoretical basics of formation of information society, information economy,
determination of demonstrative systems in ICT field, research of reasons of establishment of
digital differences in the society, study economical basics, problems of informatization of
humanitarian fields, humanitarian aspects of ICT. Areas of interest: ICT-based information
(digital) and knowledge economy, mobile, cloud, Big Data, artificial intelligence,
cryptocurrency and blockchain technologies, sustainable green, inclusive and cybersecurity of
economics, Industry 4.0 technologies, innovation management, e-commerce and payment
systems, innovation structures, science-industrial techno parks, industrial clusters, science
management and commercialization, application of digital twin technologies, smart systems
and structures, cyber-sustainable green, inclusive development of the economy, including the
oil industry economy, security and cyber sustainability of the non-oil industry potential,
increase of the cybersecurity sustainability of information and digital economy.