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:
- Offering tools to improve surveillance of transactions, decreasing risk and compliance costs; and
- 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.