Blockchain and economic resilience: enhancing stability in times of crisis (Part 1)

Economic resilience refers to the ability of an economy to withstand and recover from shocks, such as financial crises, natural disasters or other disruptions. Blockchain technology can play a crucial role in enhancing economic resilience by providing a more secure, transparent and efficient framework for various economic activities. Increasingly, the decentralised nature of blockchain technology is being recognised as a way to potentially improve the resilience of financial markets’ infrastructure as opposed to being over-reliant on a handful of centralised entities such as Euroclear, DTCC and Clearstream; certainly, if any one of these three organisations were compromised it could severely undermine the working capabilities and thus confidence in financial markets.

Financial systems are the backbone of any economy and their stability is crucial for economic resilience. Blockchain technology can enhance the resilience of financial systems in several ways, one example of which is DeFi,…