PREREQUISITES FOR A SUCESSFULL PAYMENT SYSTEM BASED ON DIGITAL (CRYPTO)CURRENCY

The first electronic/digital money-based payment systems emerged in the early and mid-1990s. In its development, electronic/digital money has passed through several generations. Although the first generation of digital money-based payment systems failed to achieve commercial success, one form of digital currency has quietly evolved over time into what we now know as cryptocurrencies. Cryptocurrencies are generally based on decentralized, direct P2P payments. The origin, development and certain technical aspects of cryptocurrency will be presented in the paper. The paper will also summarize the prerequisites that many analysts have highlighted as the most important that a digital (crypto)currency-based payment system must meet in order to be successful. The list of prerequisites will be extended with those who have not received enough attention in the theory and practice of digital (crypto)currencies so far. We conclude that the goal of a successful digital (crypto)currency-based payment system is to accurately capture the characteristics of real money; therefore, it is necessary to follow similar modalities creation, circulation, and valuation.