Author: Maksim S. Maramygin, Dr. Sc. (Econ.), Prof., Head of Financial Markets & Banking Dept; Yelena N. Prokofyeva, Cand. Sc. (Econ.), Associate Prof. of Financial Markets & Banking Dept; Anastasiya A. Markova, Sr. lecturer Financial Markets & Banking Dept.

Abstract: The paper considers money evolution over a long time period; detects main trends underlying this process; derives the basic preconditions for emergence of digital and virtual money; justifies inevitability of further evolution of instruments of circulation and payment. The nature and economic essence of virtual money (cryptocurrencies) is examined, their dual and ambiguous role in modern economic system is revealed.

Keywords: cryptocurrency; digital money; virtual money; money evolution; settlements; money substitutes; issue; bitcoin; mining; non-fiat money.