Innovations in Financial Settlements

Abstract

The subject of the study is to discuss innovations in financial settlements in terms of their construction and technological aspects. In the first case electronic and digital forms of traditional money are analysed, with particular emphasis on the innovation represented by “digital cash”. In the second case traditional money is not used for settlements and the role of an intermediary is taken over by alternative currencies of local or global range. In case of non-monetary settlements the “evidence of performed work” constitutes the specific form of innovation. In the context of challenges related to the application of innovations in financial settlements it can be assumed that alternative currencies of local range shall not develop as the dominating form of settlements. Those of global range (cryptocurrencies) will, however, not be able to substitute traditional money, but will constitute an alternative to it, hence the formal, parallel functioning of fiduciary and cryptographic currencies does not seem an abstract vision, but one of the possible and realistic scenarios of development.