We invite you to read the new article onIdeas de Peso, a blog where economists working at the BCRA share their opinions:
The financial system has undergone various changes in the past few years on account of different technological advances. Blockchain technology is one of such advances that have the potential to transform the financial services industry.
In innovation economics, a distinction is usually made between incremental and radical innovations. Incremental innovations concern small, successive improvements to existing products and processes, whereas radical innovations introduce a new product or service. Using a term coined by Joseph Schumpeter, radical innovations involve “creative destruction”. The expectations generated about the potential uses of a blockchain lead us to think that this technology might trigger significant changes in the economy. The introduction of technological innovations in production processes brings productivity gains. However, when it comes to disruptive technologies, it remains unclear if and to what extent this will actually happen.
This article aims at offering an introduction to blockchain technology. More specific cases will be discussed in future blog posts.
April 5th, 2018