Prospects for the Application of Blockchain Technology in the Financial Sector and Regulatory Challenges
Ziwei Wang · Frontiers in Business Economics and Management · 2024
This paper discusses the application prospects and regulatory challenges of blockchain technology in the financial field. It describes the advantages of blockchain technology's application in supply chain finance, trade finance, cross-border payment, securities trading and insurance, including promoting the flow of funds, reducing financial risks and improving transaction efficiency. At the same time, it points out the regulatory challenges it faces, such as the unclear domestic regulatory framework, the lack of universal rules for the technology, the contradiction between the protection of customer privacy and the application of data, and the "two-sidedness" of the application by commercial banks. Finally, it is proposed that joint efforts should be made at the levels of policy regulation, industry organisations and practitioners to achieve the safe, stable and sustainable development of blockchain technology in the financial sector.