Prospects for digital banking blockchain guarantees

Author(s):  O.M. Korobeynikova, Volgograd State Technical University, Volgograd, Russia, korobeinikov77@yandex.ru

D.A. Korobeynikov, Volgograd State Agrarian University, Volgograd, Russia

L.I. Stefanovich, Belarusian State University, Minsk, Russia, l.stefanovich@tut.by

Issue:  Volume 47 № 1

Rubric:  Public and business finance

Annotation:  The article substantiates that in order to strengthen competitive positions in sectors traditionally occupied by banks, it is necessary to search for innovative products and services, forms and methods based on advanced digital technologies. The market opportunities and prospects of a traditional Bank guarantee instrument implemented using distributed Ledger technology (blockchain) are considered. It is shown that digital Bank guarantees have prospects for mass use not only in the financial environment, in the real sector of the economy, but also for the public procurement market and improving the efficiency of public spending. However, since the first testing period, the digital Bank guarantee has not become a mass product and is available only for large and major business entities. The reasons for this are identified: the lack of standardization and regulation of distributed registry technologies; commercial cost of blockchain projects in General and digital banking guarantees in particular for small and medium-sized financial and non-financial market entities.

Keywords:  finance, innovation, banks, banking, Bank guarantee, blockchain, public procurement.

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