Blockchain and Financial Intermediation

Marianne Verdier * CRED (Centre de recherches en économie et droit), Université Paris 2 Panthéon-Assas ; CERNA (Centre d'économie industrielle), École des Mines de Paris. Contact : Marianne.Verdier@u-paris2.fr.L'auteur remercie Jean-Michel Pailhon pour ses commentaires et suggestions.


Blockchain is a technology that makes it possible to carry out and record orderly transactions in a digital format through a decentralized network without having recourse to a trusted third party. Trades are made safe by the use of encrypted algorithms. In this article, we study the impact of this innovation on the business of financial intermediation. We demonstrate that blockchains can reduce the costs associated with financial intermediation, leading to a change in the role of trusted third parties in financial transactions. However, regulation needs to provide a framework for its development in order to make trades more secure and to facilitate its adoption.


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