Evaluation of the Potential of Blockchain Technology in Enhancing the Efficiency and Transparency of the Global Financial System: A Literature Review
Keywords:
Blockchain technology, Financial system, Efficiency, Transparency, AdoptionAbstract
Blockchain technology has revolutionised the financial industry with its decentralised ledger, continuously updated and securely stored across a network. This innovation offers solutions to industry challenges, potentially enhancing efficiency and transparency in finance. However, the adoption of blockchain in fintech faces obstacles such as scalability, regulation, and user adoption. Understanding the relationship between blockchain technology and fintech is crucial for evaluating its potential in improving the global financial system's efficiency and transparency. This scoping review, following frameworks by Arksey and O'Malley and Levac et al., involves developing a review protocol, literature search, screening papers, data mapping, and analysis. The literature search covers primary databases such as Elsevier, Mendeley, and Google Scholar, focusing on publications from 2020 to 2024. The analysis identifies trends, challenges, and potential improvements related to blockchain in finance. The findings show a growing interest in blockchain for enhancing efficiency and transparency across various sectors, including finance, healthcare, smart cities, supply chain, and energy. Despite significant benefits, challenges such as scalability, privacy, regulation, and market acceptance must be addressed for widespread adoption. This review provides valuable insights for policymakers, businesses, financial institutions, and researchers to understand blockchain's potential and develop effective implementation strategies.
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