ECLAC explores the use of blockchain technology to combat de-risking

A new report published by the Economic Commission for Latin America and the Caribbean (ECLAC) explores the potential of using blockchain technology to help alleviate the effects of de-risking in the Caribbean.

The report shows that the technology has the potential to address the de-risking issue by:

  1. Offering tools to improve surveillance of transactions, decreasing risk and compliance costs; and
  2. Offering banks the opportunity to bypass correspondent banks altogether, reducing transaction costs and increasing efficiency.

While these benefits are promising the report shows that there are a number of issues with the technology which need to be ironed out before it plays any major role in addressing the de-risking issue.

Link to report: http://repositorio.cepal.org/bitstream/handle/11362/41139/1/LCCAR2017_2_en.pdf

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