Селиванова Анастасия Юрьевна
Estimation of the Economic Effect of Introduction of Blockchain in Banking
1Chapter presents theoretical foundations of the blockchain, its history, possible applications of technology in the financial and non-financial areas. 2Chapter is devoted to the study of existing practices of using blockchain technology. It was found that blockchain has a positive impact on credit risk (it is metigated), transaction process and costs (increased speed and reduced costs) and helps to attract new customers (due to transparency, reliability and speed of transactions). A formula for evaluating the effectiveness was derived. Formula can be used at later stages of blockchain application, when the blockchain will be implemented and business process data will be available. In part3, one of the parameters (the benefit of reduced credit risk) of the formula given in Chapter 2 is calculated on a specific example of interest rate swap conducted on a smart contract. The process of risk estimation of a smart contract transaction is simulated.Conclusion is that when using a swap on a smart contract, one party may lose about 10 times less than it will lose without using blockchain technology. Moreover, the Bank can reduce variable costs by automating this process, which a person does in the absence of blockchain. The features of the smart contract allow the Bank to reduce the number of employees, thereby reducing costs and increasing efficiency in accordance with the presented formula.In conclusion, based on our research, the technology must be effective for banks. It can significantly reduce credit risk, mainly due to the features of smart contracts, reduce transaction costs, improve the reliability and transparency of the transaction system. The technology also allows to reduce operating costs because of the reduction in the number of employees, since the system is fully automatic. It is recommended to implement the technology for large banks, which can bear large implementation costs.