Digital Payment Adoption and Shadow Economy Reduction: Evidence from Ukraine's Diia Platform

Key Points

• This research aims to explore the impact of digital payment adoption on reducing the shadow economy in Ukraine through the Diia platform.
• Analyzed digital payment trends
• Examined the shadow economy's size
• Utilized economic data from Ukraine's Diia platform
• Conducted statistical analyses on adoption effects
• Digital payment adoption shows a significant decrease in the shadow economy size
• Increased digital transactions correlated with higher financial transparency
• Findings suggest a positive relationship between adoption and economic growth