Distributed Ledger Technology and Economic Resilience: Strengthening Central Banks, Commercial Banks, and Land Registries

Abstract

This research article examines how distributed ledger technology (DLT) can enhance modern-day economies and the mechanisms that enable this emerging technology to sustain them in the long term. The mission of this study is to educate a diverse group of economic leaders, encompassing government agencies and private companies, about DLT and its potential to shape the future. This study analyzes secondary qualitative data to show that DLT can enhance and sustain economies in multiple ways, specifically through the three pillars of modern-day economies: central banks, commercial banks, and land registry systems. More specifically, the architectural mechanisms of DLT reduce moral hazard arising from centralized economic authorities, increase the efficiency of financial services and money movements, and lower the costs of financial services that can be passed on to consumers. Further benefits include the creation of new jobs, new industries, a new asset class, and renewed industries through the adoption of this new infrastructure, thereby expanding markets by building strong foundations for economies to grow through immutable land records, and building trustless networks worldwide.