Prospects for using blockchain in the system of international supply chains and cross-border payments

Authors

  • Marat Safiullin Kazan (Volga Region) Federal University, Kazan, Russia. Center for Advanced Economic Research, Academy of Sciences of the Republic of Tatarstan, Russia.
  • Leonid Yelshin Center for Strategic Assessments and Forecasts, Kazan (Volga Region) Federal University, Kazan, Russia. Center for Advanced Economic Research, Academy of Sciences of the Republic of Tatarstan, Russia. TISBI University of Management, Russia.
  • Marat Sharifullin Center for Advanced Economic Research, Academy of Sciences of the Republic of Tatarstan, Russia. Branch-National Bank for the Republic of Tatarstan of the Volgo-Vyatka Main Directorate of the Сentral Bank of the Russian Federation, Russia.

DOI:

https://doi.org/10.20397/2177-6652/2023.v23i4.2692

Keywords:

Blockchain, Transnational payment systems, Economic security, Sanctions pressure, International supply chains, Digital transformation

Abstract

This article considers the transformative potential of blockchain technology and digital currencies in revolutionizing national and international payment systems. The study employs a comprehensive analysis of existing literature, real-life cases, and current trends in blockchain and digital currency adoption. It assesses the impact of blockchain on international trade and financial transactions, focusing on its potential to reduce costs, enhance security, and improve transparency. The research reveals that blockchain offers promising solutions for cross-border payments by eliminating intermediaries, reducing transaction costs, and increasing the efficiency of supply chains. Central bank digital currencies are gaining traction as central banks strive to modernize payment systems and mitigate risks associated with legacy clearing systems. The study also highlights the emergence of regional payment systems and country-specific associations driven by blockchain adoption, enabling autonomous payment transactions independent of traditional regulatory mechanisms. The article emphasizes the importance of exploring alternative channels for international transactions and embracing these technologies to navigate the evolving landscape of cross-border payments. Ultimately, the potential of blockchain to accelerate transactions, reduce costs, and enhance security makes it a transformative force in reshaping the future of international and national payment systems.

References

Allen, D. W. E., Berg, C., Davidson, S., Novak, M., & Potts, J. (2019). International policy coordination for blockchain supply chains. Asia & the Pacific Policy Studies, 6(3), 367-380.

Alonso, N., Luis, S., Javier, J.-V., Forradellas, R., & Francisco, R. (2021). Central banks digital currency: Detection of optimal countries for the implementation of a CBDC and the implication for payment industry open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 72. https://doi.org/10.3390/joitmc7010072

Auer, R., Cornelli, G., & Frost, J. (2020). Rise of the central bank digital currencies: Drivers, approaches and technologies. BIS Working Papers No. 880. https://www.bis.org/publ/work880.htm (accessed on March 28, 2023).

Boar, C., Holden, H., & Wadsworth, A. (2020). Impending arrival – A sequel to the survey on central bank digital currency. BIS Papers No. 107. https://www.bis.org/publ/bppdf/bispap107.pdf

Boar, C., & Wehrli, A. (2021). Ready, steady, go? Results of the third BIS survey on central bank digital currency. BIS Papers No. 114. URL: https://www.bis.org/publ/bppdf/bispap114.pdf

Civelek, M., Ključnikov, A., Kloudová, J., & Vozňáková, I. (2021). Digital local currencies as an alternative digital payment method for businesses to overcome problems of COVID-19 pandemic. Polish Journal of Management Studies, 23(2), 57-71. https://doi.org/10.17512/pjms.2021.23.2.04

Clarke, R. (2003). Libertarian accounts of free will. Oxford; New York: Oxford University Press.

Cunha, P. R., Melo, P., & Sebastião, H. (2021). From Bitcoin to central bank digital currencies: Making sense of the digital money revolution. Future Internet, 13(7), 165. https://doi.org/10.3390/fi13070165

Davoodalhosseini, S., & Mohammad, R. (2018). Central bank digital currency and monetary policy. Bank of Canada Staff Working Paper No. 2018-36. http://hdl.handle.net/10419/197889

Egorsheva, N. (2023, March 20). TsB obyazal banki s oktyabrya ispolzovat tolko rossiiskie servisy po vnutrennim perevodam [The Central Bank obliged banks to use only Russian services for internal transfers from October]. https://rg.ru/2023/03/20/cb-obiazal-banki-s-oktiabria-ispolzovat-tolko-rossijskie-servisy-po-vnutrennim-perevodam.html?utm_source=yxnews&utm_medium=mobile&utm_referrer=https%3A%2F%2Fdzen.ru%2Fnews%2Fstory%2FCB_obyazal_banki_soktyabrya_ispolzovat_tolko_rossijskie_servisy_povnutrennim_perevodam--b54019982759db1f4d0b5865b2f56ec2#bounce (accessed on March 21, 2023).

Engert, W., & Fung, B. S. C. (2017). Central bank digital currency: Motivations and implications. Bank of Canada Staff Discussion Paper 2017-16. https://www.bankofcanada.ca/wp-content/uploads/2017/11/sdp2017-16.pdf

European Parliament, Directorate-General for Parliamentary Research Services, Copigneaux, B., Vlasov, N., Bani, E., Tcholtchev, N., Lämmel, P., Fuenfzig, M., Snoeijenbos, S., Flickenschild, M., Piantoni, M., & Frazzani, S. (2020). Blockchain for supply chains and international trade. Report on key features, impacts and policy options. Brussels: European Parliament. https://doi.org/10.2861/957600

Fernández-Villaverde, J., Sanches, D., Schilling, L., & Uhlig, H. (2021). Central bank digital currency: Central banking for all? Review of Economic Dynamics, 41, 225-242. https://doi.org/10.1016/j.red.2020.12.004

Ganne, E. (2018). Can Blockchain revolutionize international trade? Geneva: World Trade Organization.

Goodell, G., Al-Nakib, H. D., & Tasca, P. (2021). A digital currency architecture for privacy and owner-custodianship. Future Internet, 13(5), 130. https://doi.org/10.3390/fi13050130

Kochergin, D. (2021). Tsifrovye valyuty tsentralnykh bankov: Mirovoi opyt [Digital currencies of central banks: Global experience]. Mirovaya ekonomika i mezhdunarodnye otnosheniya, 65(5), 68-77. https://doi.org/10.20542/0131-2227-2021-65-5-68-77

Kshetri, N. (2021). The economics of Central Bank digital currency. Computer, 54(6), 53-58. https://doi.org/10.1109/MC.2021.3070091

Mancini-Griffoli, T., Peria, M. S. M., Agur, I., Ari, A., Kiff, J., Popescu, A., & Rochon, C. (2018). Casting light on central bank digital currencies. IMF Staff Discussion Notes, 18(8), 1. http://dx.doi.org/10.5089/9781484384572.006

OECD. (2019). The policy environment for blockchain innovation and adoption: 2019 OECD global blockchain policy forum summary report. OECD Blockchain Policy Series. http://www.oecd.org/finance/2019-OECD-Global-Blockchain-Policy-Forum-Summary-Report.pdf

Okazaki, Y. (2018). Unveiling the potential of blockchain for customs. WCO Research Paper No. 45. https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/research/research-paper-series/45_yotaro_okazaki_unveiling_the_potential_of_blockchain_for_customs.pdf

Ozili, P. K. (2023). Central bank digital currency research around the world: A review of literature. Journal of Money Laundering Control, 26(2), 215-226. https://doi.org/10.1108/JMLC-11-2021-0126

Safiullin, M. R., Yelshin, L. A., & Abdukaeva, A. A. (2019). Integralnaya mnogokomponentnaya otsenka razvitiya rynka blokchein-tekhnologii v natsionalnoi ekonomike Rossii [Integral multi-component assessment of the development of the blockchain technology market in the national economy of Russia]. Innovatsii, 7(249), 41-49.

Sidorenko, E. (2021). Tsifrovaya valyuta tsentralnykh bankov ekonomicheskie stsenarii i prognozy [Digital currency of central banks economic scenarios and forecasts]. Mezhdunarodnye protsessy, 19(2), 151-165. https://doi.org/10.17994/IT.2021.19.2.65.8

Tapscott, D., & Tapscott, A. (2017). How blockchain will change organizations. MIT Sloan Management Review, 58(2), 10-13.

Tong, W., & Jiayou, C. (2021). A study of the economic impact of central bank digital currency under global competition. China Economic Journal, 14(1), 78-101. https://doi.org/10.1080/17538963.2020.1870282

World Economic Forum. (2019). Windows of opportunity: Facilitating trade with blockchain technology. WEF White Papers. https://www3.weforum.org/docs/WEF_Windows_of_Opportunity.pdf

Zhang, T., & Huang, Z. (2021). Blockchain and central bank digital currency. ICT Express, 8(2), 264-270. https://doi.org/10.1016/j.icte.2021.09.014

Published

2024-09-25

How to Cite

Safiullin, M., Yelshin, L., & Sharifullin, M. (2024). Prospects for using blockchain in the system of international supply chains and cross-border payments. Journal of Management & Technology, 23(4), 360–376. https://doi.org/10.20397/2177-6652/2023.v23i4.2692

Issue

Section

ARTIGO