Role of digitalization in the foreign exchange market

In recent decades, digitalization has been taking place in all spheres of public life. It generates keen interest in the study of the possibilities provided by new technologies. Taking into account the importance of currency relations for the economy of any country and the world economy as a whole, it is relevant to study the impact of digitalization on the foreign exchange market. The article defines the development and use of electronic trading systems, the emergence of blockchain technology, cryptocurrencies, stablecoins, and the issuance of digital currencies by central banks as the main areas of influence. It is shown that changes in the foreign exchange market associated with the improvement of trading systems lead mainly to positive consequences: an increase in the speed of currency exchange transactions, reduced risks and costs for the participants, and an expansion in the volume of annual deals. Possibilities and risks for cryptocurrency users in calculations and investment are characterized, as well as possibilities of increasing the speed, reducing the cost, and diversifying the currency structure of international settlements with digital currencies of central banks. It is concluded that it is necessary to develop legal regulation of the procedure for issuing and functioning of cryptocurrencies, international settlements using digital currencies of central banks, and the creation of reliable measures to protect against cyber threats.