IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2020-02-7.html

Blockchain Technology and Systemic Risk

Author

Listed:
  • Aymen Mselmi

    (College of Business, University of Jeddah, Saudi Arabia)

Abstract

This paper examines the effect of financial institutions management information system migration to blockchain technology on systemic risk. Our study examines a sample of 40 financial institutions around the world. The aim is to identify to what extent the migration of financial company management information system to blockchain system contribute to minimize systemic risk measures through regressions on panel data. We have reached the empirical evidence which indicates that the change we mentioned earlier affect immediately the systemic risk level. Companies that have adopted the blockchain technology recorded a significant reduction in systemic risk level. In addition, financial institutions that have adopted this latter system recorded a significant decrease in long-run marginal expected shortfall and systemic risk index.

Suggested Citation

  • Aymen Mselmi, 2020. "Blockchain Technology and Systemic Risk," International Journal of Economics and Financial Issues, Econjournals, vol. 10(2), pages 53-60.
    • Handle: RePEc:eco:journ1:2020-02-7
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijefi/article/download/9069/pdf
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijefi/article/view/9069/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lin William Cong & Zhiguo He, 2019. "Blockchain Disruption and Smart Contracts," The Review of Financial Studies, Society for Financial Studies, vol. 32(5), pages 1754-1797.
    2. repec:fip:fedhpr:y:2010:i:may:p:65-71 is not listed on IDEAS
    3. Neil Gandal & Hanna Halaburda, 2016. "Can We Predict the Winner in a Market with Network Effects? Competition in Cryptocurrency Market," Games, MDPI, vol. 7(3), pages 1-21, July.
    4. Gareth W Peters & Ariane Chapelle & Efstathios Panayi, 2016. "Opening discussion on banking sector risk exposures and vulnerabilities from Virtual currencies: An Operational Risk perspective," Journal of Banking Regulation, Palgrave Macmillan, vol. 17(4), pages 239-272, November.
    5. Viral V. Acharya & Lasse H. Pedersen & Thomas Philippon & Matthew Richardson, 2017. "Measuring Systemic Risk," The Review of Financial Studies, Society for Financial Studies, vol. 30(1), pages 2-47.
    6. Aymen Mselmi & Boutheina Regaieg, 2018. "Corporate governance and systemic risk of Tunisian banks," International Journal of Corporate Governance, Inderscience Enterprises Ltd, vol. 9(1), pages 23-51.
    7. Easley, David & O'Hara, Maureen & Basu, Soumya, 2019. "From mining to markets: The evolution of bitcoin transaction fees," Journal of Financial Economics, Elsevier, vol. 134(1), pages 91-109.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Olufemi Peter Alawode & Helen Nwobodo & Afolake Ogunfowora & Alao Olubunmi & Chimeruo Victory Onyeka-Iheme, 2024. "Financial Re-Engineering and Customer Performance of Poultry Business in Nigeria," International Journal of Economics and Financial Issues, Econjournals, vol. 14(6), pages 164-173, October.
    2. Cong Gu & Benfu Lv & Ying Liu & Geng Peng, 2021. "The Impact of Quantitative Easing on Cryptocurrency," International Journal of Economics and Financial Issues, Econjournals, vol. 11(4), pages 27-34.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cong, Lin William & Mayer, Simon, "undated". "The Coming Battle of Digital Currencies," Applied Economics and Policy Working Paper Series 320020, Cornell University, Department of Applied Economics and Management.
    2. Yuk Ming Tang & Ka Yin Chau, 2025. "Blockchain evolution and management theoretical (BEMT) model based on integrated semantic similarity and co-citation analysis for next generation service industry," Operations Management Research, Springer, vol. 18(2), pages 475-494, June.
    3. Hanna Halaburda & Guillaume Haeringer & Joshua Gans & Neil Gandal, 2022. "The Microeconomics of Cryptocurrencies," Journal of Economic Literature, American Economic Association, vol. 60(3), pages 971-1013, September.
    4. Aixing Li & Ke Gong & Jiashun Li & Li Zhang & Xueting Luo, 2025. "Is Monopolization Inevitable in Proof-of-Work Blockchains? Insights from Miner Scale Analysis," Computational Economics, Springer;Society for Computational Economics, vol. 66(3), pages 1825-1850, September.
    5. Anil Donmez & Alexander Karaivanov, 2022. "Transaction fee economics in the Ethereum blockchain," Economic Inquiry, Western Economic Association International, vol. 60(1), pages 265-292, January.
    6. Gang Kou & Yang Lu, 2025. "FinTech: a literature review of emerging financial technologies and applications," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 11(1), pages 1-34, December.
    7. Castillo León, Jaime & Lehar, Alfred, 2026. "What data have told us about decentralized finance," Journal of Corporate Finance, Elsevier, vol. 96(C).
    8. Max Raskin & Fahad Saleh & David Yermack, 2020. "How do Private Digital Currencies Affect Government Policy?," World Scientific Book Chapters, in: Bernard Yeung (ed.), DIGITAL CURRENCY ECONOMICS AND POLICY, chapter 12, pages 111-115, World Scientific Publishing Co. Pte. Ltd..
    9. Cong, Lin William & Li, Ye & Wang, Neng, 2022. "Token-based platform finance," Journal of Financial Economics, Elsevier, vol. 144(3), pages 972-991.
    10. Benedikt Franke & Qi Gao Fritz & André Stenzel, 2024. "The (Limited) Power of Blockchain Networks for Information Provision," Management Science, INFORMS, vol. 70(2), pages 971-990, February.
    11. Zongxi Li & A. Max Reppen & Ronnie Sircar, 2024. "A Mean Field Games Model for Cryptocurrency Mining," Management Science, INFORMS, vol. 70(4), pages 2188-2208, April.
    12. Andrew Detzel & Hong Liu & Jack Strauss & Guofu Zhou & Yingzi Zhu, 2021. "Learning and predictability via technical analysis: Evidence from bitcoin and stocks with hard‐to‐value fundamentals," Financial Management, Financial Management Association International, vol. 50(1), pages 107-137, March.
    13. Wang, Jiaxin & Huang, Xiang & Gu, Qiankun & Song, Zilong & Sun, Ruiyi, 2023. "How does fintech affect bank risk? A perspective based on financialized transfer of government implicit debt risk," Economic Modelling, Elsevier, vol. 128(C).
    14. Michael Sockin & Wei Xiong, 2023. "Decentralization through Tokenization," Journal of Finance, American Finance Association, vol. 78(1), pages 247-299, February.
    15. Zongxi Li & A. Max Reppen & Ronnie Sircar, 2019. "A Mean Field Games Model for Cryptocurrency Mining," Papers 1912.01952, arXiv.org, revised Jan 2022.
    16. Bruno Biais & Agostino Capponi & Lin William Cong & Vishal Gaur & Kay Giesecke, 2023. "Advances in Blockchain and Crypto Economics," Management Science, INFORMS, vol. 69(11), pages 6417-6426, November.
    17. Sean Shun Cao & Lin William Cong & Baozhong Yang, 2025. "Distributed Ledgers and Secure Multiparty Computation for Financial Reporting and Auditing," Management Science, INFORMS, vol. 71(5), pages 3852-3872, May.
    18. Lin William Cong & Xiang Hui & Catherine Tucker & Luofeng Zhou, 2023. "Scaling Smart Contracts via Layer-2 Technologies: Some Empirical Evidence," Management Science, INFORMS, vol. 69(12), pages 7306-7316, December.
    19. Prateek Saxena, 2020. "Comments on “Cellular Structure for a Digital Fiat Currency” — Cellular DFC Design: Technological Perspectives," World Scientific Book Chapters, in: Bernard Yeung (ed.), DIGITAL CURRENCY ECONOMICS AND POLICY, chapter 11, pages 103-109, World Scientific Publishing Co. Pte. Ltd..
    20. Michael Sockin & Wei Xiong, 2023. "A Model of Cryptocurrencies," Management Science, INFORMS, vol. 69(11), pages 6684-6707, November.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ1:2020-02-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.