Role of blockchain technology in changing the structure of a country's monetary base and GDP

Abstract

This article explores the role of blockchain technology in changing the structure of a country's monetary base. Specifically, it examines the potential benefits and risks of using blockchain in monetary policy, such as efficiency, transparency, and new opportunities for managing the financial system. The article highlights changes in approaches to monetary policy through the use of blockchain-based digital currencies, as well as discusses challenges that may arise in implementing this technology. The conclusions of this article may be valuable for government agencies, central banks, and researchers interested in the impact of blockchain technology on the financial sector. In recent years, the adoption of blockchain technology as an alternative to fiat currencies in various countries around the world has significantly expanded globally, as a significant number of business organizations have recognized the importance of all the advantages that blockchain technology provides. Previously, the focus was on cost control to remain competitive, but lately blockchain technologies have somewhat shifted the significance and monetary mass, influencing the structure of a certain country's monetary base. Based on recent research and publications, the article emphasizes the importance of understanding economic principles that govern the determination of the impacts of various economic and financial indicators on components of economic growth and predicting the consequences of such decisions. It references the seminal work of economists P. Romer, R. Lucas, R. Barro, I. Salla y Martin, and R. Levine, who laid the foundation for studying endogenous economic development. The purpose of this article is to investigate the practice of implementing blockchain technology in the financial support of various economic processes of economic entities and their impact on the structure of a country's monetary base. Thus, it has been identified that the influence of blockchain on the structure of the monetary base itself has received little attention. Despite blockchain being used as an alternative to components of the monetary base, thereby changing its structure within a certain country, most studies focus on literature reviews and provide information for practitioners and academic communities. Therefore, this article aims to bridge the gap by developing a model to identify distortions in the structure of the monetary base under the influence of blockchain. The effective use of blockchain is still being explored. As a result, the operations of many companies using blockchain technologies for payments are vulnerable to technical issues. Blockchain technology is utilized to address this problem and facilitate data exchange among relevant stakeholders. This document presents a benchmark for the impact of blockchain technology on the structure and mass of the monetary base for a specific country, integrating blockchain for sustainable money functioning with the integration of the Internet of Things and big data. Finally, potential benefits and limitations are analyzed during the implementation of this framework. Methods. Macroeconomic analysis, econometric analysis, trend analysis. Results. Determination of the level of influence of blockchain technologies on the change in the structure and volume of the monetary base of a certain country. The study casts doubt on classical economic doctrines by establishing a strong correlation between the distribution of components of the monetary base in its structure and the use of blockchain technology for payments for goods, labor, and services. It emphasizes that the economic growth of a country and the structure of its monetary base depend on the proportion of blockchain technology usage in that country. This research opens up possibilities for further studies in this interdisciplinary field.