The impact of blockchain integration on financial market performance: Case of BVMC

Abstract

Blockchain technology promises real development for the financial market and bringing new contribution to the market. It has been addressed in several industries and mainly financial services. It can create decentralized and distributed registers specially dedicated to financial services and can improve financial intermediation by ensuring rapid settlement, lower transaction costs and continuous operation of the market. The main objective of this paper is then to analyze whether there exists empirically a long-term relationship and a positive impact between the integration of blockchain on the performance of the stock market, taking the case of BVMC. The method used is a cointegration analysis via modeling the degree of blockchain integration in Morocco and the performance of the stock market, represented by the evolution of the MASI index, while integrating other variables to further support the model. The BVMC is in the midst of a transformation and the new development model (2021) gives it an important role in financing the economy. One of the most important acceleration levers for achieving its objectives remains digitalization. And blockchain offers plenty of advantages in terms of digital transformation for the Moroccan stock market. Several projects to create financial markets operating on a blockchain are underway in developed countries, and several theoretical studies demonstrate the advantages of blockchain integration in the financial market. The BVMC will be tempted to follow international trends and the search for performance will lead the BVMC to integrate blockchain technology. The results of the study clearly demonstrate that blockchain technology will bring new rules to the way transactions operate and are organized, and that it will have a positive impact on the performance of the Moroccan stock market.

Keywords: Blockchain, decentralized ledger, performance, transaction costs,

JEL Classification: G15, G17, O16, O31, O55

Paper type: Empirical research