Financial stability is the key to the well-being of citizens. During a crisis, technological innovation and blockchain implementation should enhance financial well-being.
COVID-19 has become a significant threat to the health and well-being of people around the world. The outbreak has had a devastating impact on local and global business and the economy. A year later, there are still travel bans and quarantine for the public, and companies continue to lose incomes. Many people have lost their jobs, being unable to work remotely because of their profession, or lost their place of employment along with another closed business.
The shockwave from the collapse of 2020 will resonate in the world economy for several years, but effective measures to bring the economy back to normal, the world must take now. In such an environment where crisis hotbeds are distributed unevenly, it is vital to clearly understand where support is required, so transparency plays a paramount role
. As recently as last year, many governments began supporting
affected industries and organizations.
The health care system and other major life support sectors of the country bear the greatest responsibility on the health and safety of citizens. With the colossal efforts of the state to protect its citizens, it is necessary to pay attention to the extreme importance of ensuring transparency
and accountability of all measures taken and financial flows from the state budgets. For this support to be sufficient and timely, technology is demanded.
Blockchain as an independent and invulnerable distributed registry is the best tool for restoring trust
and ensuring equitable access to financial support. The uniqueness of the blockchain lies in the immutability guaranteed by the cryptographic protection system. For example, when transactions are filed into blocks and recorded in a database, the record prefaces cryptographic verification, making it impossible to change the registry through any fraud. Once the data is stored in the blockchain, it cannot be changed or deleted. It allows the use of blockchain as a piece of documentary evidence or confirmation of the transfer of assets.
The immutability allows the use of blockchain and as a method of proof of compliance with regulatory requirements processes - recording all the actions and results obtained in the blockchain can serve as an audit log for regulators. Such innovation will allow regulators to play a more active role in the implementation of control and bring them closer to the status of participants in the process. Blockchain can significantly reduce the time and effort required to compile and verify reports, compile support applications, and accelerate business analysis and adaptation to current conditions. At a lower cost, the will provide a higher quality
, accuracy, and reliability of the process.
To restore physical and social infrastructure as soon as possible, governments must ensure transparency
in funding. At a time when expenditures are well above GDP, it is necessary to keep a focus on crisis areas and allocate resources correctly. The proper expenses
are the key to quality well-being. Countries that have identified crucial areas for financing in time are much more easily affected by the economic impact of the pandemic. Blockchain and digitized budget flows are needed for efficient analysis and planning of regional budgets.
can provide greater transparency of financial flows, as well as reduce risks and bring the following benefits:
- Improving monitoring and enforcement of established standards within companies
- Reducing corruption and losses;
- Improving financial flow transparency and compliance;
- Reducing documentation and administrative costs;
- Strengthening the reputation of government and companies by ensuring transparency of information;
- Improving the security of shared data and building public confidence;
- Reducing the risk of deteriorating public relations due to unfair practices.
The use of blockchain technology can provide greater transparency and accurate, end-to-end monitoring of financial flows. Organizations will be able to digitize their assets and create a "perpetual" decentralized register of all their operations, enabling them to track the path of all assets and improve the performance and efficiency of interactions. This increased transparency provides greater visibility, which means greater power of attorney, which will help to remain effective even in times of instability.