The rapid growth of information technology and industrial revolutions provoked digital transformation of all sectors, from the government to households. Moreover, digital transformations led to the development of cryptocurrency. However, crypto trading provokes a dilemma loop. On the one hand, crypto trading led to economic development, which allowed attracting additional resources to extending smart and green technologies for de-carbonising the economic growth. On the other hand, crypto trading led to intensifying energy sources, which provoked an increase in greenhouse gas emissions and environmental degradation. The paper aims to analyse the connections between crypto trading, economic development of the country, renewable energy consumption, and environmental degradation. The data for analysis were obtained from: Our World in Data, World Data Bank, Eurostat, Ukrstat, Crystal Blockchain, and KOF Globalisation Index. To check the hypothesis, the paper applied the Pedroni and Kao panel cointegration tests, FMOLS and DOLS panel cointegration models, and Vector Error Correction Models. The findings concluded that the increasing crypto trading led to enhanced GDP, real gross fixed capital formation, and globalisation. However, in the long run, the relationship between crypto trading and the share of renewable energies in total energy consumption was not confirmed by the empirical results. For further directions, it is necessary to analyse the impact of crypto trading on land and water pollution.

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The Role of Crypto Trading in the Economy, Renewable Energy Consumption and Ecological Degradation

This study provides comprehensive discussion on role of strategic intelligence in commercial banks, in Kenyan context. The primary focus was to evaluate the performance of commercial banks using both financial and non-financial performance measurers. The financial measurers comprised return on equity (ROE), while non-financial measures were customer satisfaction, learning and growth, and internal processes. The study was anchored on resource-based view and balanced scorecard model. The target population comprised 40 commercial banks. Additionally, the sample size 181 was selected proportionately through stratified sampling procedure. Data collection instruments comprised closed and open -ended questionnaires and online review. The study used both primary and secondary data, where primary data was obtained from Kenya commercial banks head offices, while secondary data, for the year 2016 – 2018, was obtained from the annual reports of the central bank of Kenya. Data analysis was done using descriptive statistics and linear multiple regression analysis. Findings of the study indicate that strategic intelligence has a statistically significance on the performance of commercial banks in Kenya. Moreover, both financial and non-financial measures of performance are relevant in the banking sector and growth of Kenyan economy. The study recommends that commercial bank in Kenya should integrate their training focus and strategy implementation with investors interests based on balanced score card.

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Financial and Non-Financial Measures in Evaluating Performance: The Role of Strategic Intelligence in the Context of Commercial Banks in Kenya

Cryptocurrency is one of the famous financial state in all over the world which cause several type of risks that effect on the intrinsic assessment of risk auditors. From the beginning the growth of cryptocurrency gives the financial business with the wide risk in term of presentation of money laundering. In the institution of financial supports such as anti-money laundering, banks and secrecy of banks proceed as a specialist of risk, manager of bank and officer of compliance which has a provocation for the related transaction through cryptocurrency and the users who hide the illegal funds.In this study, the Hierarchical Risk Parity and unsupervised machine learning applied on the cryptocurrency framework. The process of professional accounting in term of inherent risk connected with cryptocurrency regarding the occurrence likelihood and statement of financial impact. Determining cryptocurrency risks comprehended to have a high rate of occurrence likelihood and the access of private key which is unauthorized. The professional cryptocurrency experience in transaction cause the lower risk comparing the less experienced one. The Hierarchical Risk Parity gives the better output in term of returning the adjusted risk tail to get the better risk management result.The result section shows the proposed model is robust to various intervals which are re-balanced and the co-variance window estimation. 

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Machine Learning-Based Analysis of Cryptocurrency Market Financial Risk Management

Cryptocurrency is one of the famous financial state in all over the world which cause several type of risks that effect on the intrinsic assessment of risk auditors. From the beginning the growth of cryptocurrency gives the financial business with the wide risk in term of presentation of money laundering. In the institution of financial supports such as anti-money laundering, banks and secrecy of banks proceed as a specialist of risk, manager of bank and officer of compliance which has a provocation for the related transaction through cryptocurrency and the users who hide the illegal funds.In this study, the Hierarchical Risk Parity and unsupervised machine learning applied on the cryptocurrency framework. The process of professional accounting in term of inherent risk connected with cryptocurrency regarding the occurrence likelihood and statement of financial impact. Determining cryptocurrency risks comprehended to have a high rate of occurrence likelihood and the access of private key which is unauthorized. The professional cryptocurrency experience in transaction cause the lower risk comparing the less experienced one. The Hierarchical Risk Parity gives the better output in term of returning the adjusted risk tail to get the better risk management result.The result section shows the proposed model is robust to various intervals which are re-balanced and the co-variance window estimation.

The use of digital money creates not only threats, but also opportunities for economic development, but in Latvia and the Baltic countries, they are not sufficiently researched and not widely spread.
The paper aims to identify the reasons for the lagging behind of the Baltic countries and Latvia in the development of the cryptocurrency market and to develop recommendations for improving its regulation and functioning.
Based on the methods of cross-country, statistical and sociological analysis,
the national factors of differences in the functioning and regulation of cryptocurrencies in Latvia, Estonia, and Lithuania have been identified and the risks of its use for illegal activities have been assessed.
It is shown that the role of cryptocurrencies in the financial markets of the Baltic States is determined by the degree of their use for payments and investments, which depends on their recognition by the state and investors.
It has been revealed that the definition of the concept of cryptocurrency in the EU and the Baltic countries, primarily in the money laundering and terrorist financing (ML/TF) directives, does not stimulate the use of its positive features.
A correlation between the restrained attitude towards cryptocurrencies in Latvia and its large-scale business relations with the CIS countries with a higher proportion of shadow economy, caused by the peculiarities of its history and geographical location, has been revealed.
The Latvian banking system, under the influence of international regulators, has become less appropriate for operations of non-residents from the East, which increases the risk of using cryptocurrency for ML/FT purposes.
The factors of motivation, advantages and difficulties of the businessmen of the Baltic countries they face when dealing with cryptocurrency have been identified, and a discrepancy in the regulation of taxation of transactions with cryptocurrency and the respective activities in Latvia has been revealed.
Recommendations are given to the state and private investors pertaining to the integration of cryptocurrencies into the economic space, the implementation of which will contribute to the development of the digital economy and growth of wealth of Latvian residents.
The results of the study can be used to improve government regulation and private investments in the cryptocurrency market, as well as in the study and further research of this problem

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Cryptocurrency market development in latvia and the baltic states

The aim of the paper is to study the influencing factors and to identify the ways of improving the effectiveness of regulation in theLatvian Bank system (LBS). Basing on the systemic comparative and logical analysis data of the efficiency of regulation in differentstages of LBS development article demonstrates that its key factor is the level of business ethics and professionalism of majorshareholders and top management of the banks, but the main directions of improving its efficiency is an increase of the role of contentapproach to control in comparison with the formal approach. Keywords: banking system, factors, features, regulation, tendencies. DOI:  http://dx.doi.org/ 10.15181/rfds.v11i3.618

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Tendencies and Factors of Regulation of Development i n Latvian Banking System

The article is devoted to the prospects for the integration of cryptocurrencies into the national and world economy. The views of various researchers on the essence of cryptocurrency, its strengths and weaknesses are systematized, the impact of differences in state regulation of cryptocurrency circulation on the nature of its use and the risks of money laundering is assessed, the factors that complicate the implementation of the main functions of money are identified. It has been revealed that in a broad sense, cryptocurrency is a new transaction technology that embodies the properties of money, goods, property, and financial assets but does not fully correspond to any of them. A cross-country analysis of the impact of changes in the economic and political situation on cryptocurrency and financial assets has confirmed a growing interest in investing in cryptocurrency, including institutional investors, which opens up the opportunity to become not just a speculative but also a protective investment asset. Taking into account the identified trends in government regulation of cryptocurrencies creates new opportunities for economic growth.

Problems and Prospects of Cryptocurrency Development

Abstract Research purpose. The high-speed railway (HSR) construction project in the Baltic States is the largest joint infrastructure project since the restoration of independence of Latvia, Lithuania and Estonia. Rail Baltica (RB) is considered as the most energy-efficient project having the lowest environmental impact. However, the issue of energy consumption of the project was not sufficiently addressed either in the investment justification of the RB construction or in the relevant research works regarding the project. The aim of the current research is to determine the indicators of energy consumption and carbon dioxide (CO2) emissions intensity of the Latvian section of RB, since they are the key factors of the quantitative assessment of sustainability. Design/Methodology/Approach. Critical analysis of the academic research works and reports of the official international organizations dedicated to the topic of energy consumption and CO2 emissions of HSR was conducted prior to the calculation of the above-mentioned indicators. The method of calculation based on International Union of Railways (UIC) was used in order to conduct the cluster analysis within the framework of current work. The main points considered are electricity consumption, carbon dioxide emissions, and level of passenger and freight demand. Statistical databases of UIC and International Energy Agency were used. Findings. The calculations carried out by the authors of the given article demonstrate substantial figures of CO2 emissions intensity for Latvian section of the project related to the train load rate and traffic intensity which is evened out only by the CO2 emissions factor in Latvia. Originality/Value/Practical implications. On this basis the authors present the directions for future research required for the development of the effective strategy for the Latvian Republic with the aim of achieving the increase in the RB project’s ecological efficiency.

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Alexander Masharsky

Papers

Cryptocurrency market development in latvia and the baltic states

Tendencies and Factors of Regulation of Development i n Latvian Banking System

Problems and Prospects of Cryptocurrency Development

Energy Consumption of Rail Baltica Project: Regional Aspects of Environmental Impact