OECD

This paper examines the potential applications of the blockchain technology as a means of eradicating corruption in three domain areas: supply chain and logistics, government and public sectors, and international trade. Although many papers anticipate the potential opportunities that the technology may bring in our society, this paper focuses more on the challenge and risk factors that needs to be considered before its implementation. A close understanding of its limitations need to be uncovered and appropriate policy measures need to be formulated accordingly in order to maximize the socioeconomic benefit of the blockchain technology.

The financial crisis has led to a widespread loss of trust in financial intermediaries of all kinds, perhaps helping to open the way towards the general acceptance of alternative technologies. This paper briefly summarises the cryptocurrency phenomenon, separating the ‘currency’ issues from the potential technology benefits. With respect to crypto currencies, the paper argues that these can’t undermine the ability of central banks to conduct monetary policy.