BLINK: Blockchain-Linked network for credit guarantee institutions

Abstract

Credit guarantee institutions (CGIs) provide a fundamental contribution to alleviating the financial constraints faced by a specific group of borrowers. However, critics highlight significant weaknesses, including the limited ability to maintain financial stability and operational effectiveness. This paper presents a framework for leveraging DLTs, specifically blockchain technologies, in CGI processes. To achieve this goal, we analyze critical architectural characteristics, considering access level, governance structure, and the consensus method, to assess how well they align with CGI processes. This study has the potential to provide valuable guidance to policymakers and stakeholders, encouraging continued innovation in this promising field.