Digital Currencies and Fintech Innovation Technologies for Economic Growth

The transition of the global economy to digital currencies is inevitable. Today’s monetary methods of regulation do not provide a stable and inclusive economy, and central banks will be forced to move on to the implementation of the state digital currency in real practice, which will ultimately allow introducing total control over the use of customer assets and strict business regulation,especially in the field of the shadow economy and tax crimes. The main factors for the transition to digital currencies aretechnological progress, an increase in online transactions, independence from national currencies, and low commissions. Thepurpose of the article is to assess the potential for economic growth of digital currencies and FinTech innovation technologies inthe context of growing government debts. The scientific novelty of the obtained results lies in the construction of a regression model of GDP growth dependence on inflation, government debt and the long-term interest rate. The regression analysis was conducted by building a linear multiple model for selected developed European countries based on statistical data from the European Central Bank, the European Commission, and other Internet resources. The equation of dependence of the GDP of European countries on the selected factors obtained as a result of regression modelling can be practically used to forecast future GDP indicators. The model showed that inflation growth has a negative impact on GDP growth and confirmed that further economic growth is possible with the introduction of digital currency, which will help to reduce the inflationary burden. The issuance of digital currency will be strictly controlled, which will contribute to the formation of an inclusive economy by attracting people who do not have bank accounts to business, and the shadow economy will be reduced. This will create opportunities for real economic growth. It is predicted that the introduction of digital currencies could lead to a faster, moreconvenient, cheaper and more private payment system, which is important for citizens and businesses.