CRYPTOCURRENCIES AND ELECTRONIC PAYMENT SYSTEMS AND THE PERCEPTION OF THEIR USE IN THE REPUBLIC OF NORTH MACEDONIA

Abstract

Electronic payments have become one of the fundamental components of modern electronic business, which has been experiencing exponential growth on a global scale in recent years. The widespread adoption of electronic payments has significantly simplified the execution of numerous commercial transactions, enabling individuals and businesses to conduct buying and selling activities more efficiently. This digital transformation not only facilitates time and cost savings for consumers and merchants but also enhances overall convenience and accessibility in the marketplace. At the same time, new technologies and electronic payments are among the most significant challenges that every company faces in the internet era. Today, companies, government institutions, and corporations have adopted electronic transactions to improve their profitability or efficiency in the sale of goods or services in areas such as banking, healthcare, commerce, tourism, insurance, and education. Digital currencies, including cryptocurrencies and central bank digital currencies (CBDCs), represent a revolutionary shift in the global financial system, introducing new opportunities and challenges. This paper explores the concepts of electronic money, digital payments, and cryptocurrencies, analyzing their impact on financial institutions, monetary policy, and traditional banking. Methodologically, the research applies a comparative analysis of traditional and digital currencies, examining their characteristics, security mechanisms, and regulatory aspects. Through the analysis of secondary sources, academic papers, reports from international financial institutions, and empirical data on market dynamics, the key advantages and disadvantages of these financial innovations are identified. The findings show that while cryptocurrencies offer financial decentralization, they suffer from significant volatility and regulatory uncertainty. On the other hand, central bank digital currencies have the potential to improve financial inclusion and economic stability, but they may undermine traditional banking by eliminating intermediaries. The results indicate that there is a high level of interest among the younger population and people with higher technological literacy, while older generations show a higher degree of distrust. Regulatory uncertainty, value instability and insufficient education are the main barriers to wider adoption. The research suggests that the future of digital currencies depends on a balanced approach between financial innovation and regulatory control. The benefits of broader adoption can only be realized through effective legal frameworks, stable technological platforms, and increased trust among consumers and institutions.