The Use of Blockchain Technology and Homeostatic Principles in the Monetary Policies of States

The article presents the main trends in the application of blockchain technology and the basic principles of homeostatics in the formation of monetary policy: theoretical approaches and a methodological basis for conducting the study are investigated. The tools used for the research include literature and statistics. In the conclusion, examples and possible scenarios of predictive implementation for the use of homeostatics and blockchain technology in monetary policy are presented.

Analyzed data allowed us to conclude that distributed ledgers leveraged by the means of blockchain represent a model ruled by the principles of homeostatics. They are characterized by a similar structure (four layers) and can increase the transparency of the financial market. Being supported by the laws of homeostatics, blockchain simplifies processes compared to centralized solutions and enables flexible settlement models. In the analytical part, we assumed that the implementation of blockchain-based digital currencies may have a serious short- and long-term impact on monetary systems and put the role of Central Banks under question.