Blockchain and Smart Contracts in The Financial Sector: Opportunities, Risks, and Regulatory Challenges – a Case Study of Germany
Blockchain and Smart Contracts in The Financial Sector: Opportunities, Risks, and Regulatory Challenges – a Case Study of Germany
Author(s): Lynda Ait BachirSubject(s): Economy, National Economy, Micro-Economics, Financial Markets, Public Finances, Human Resources in Economy, ICT Information and Communications Technologies, Socio-Economic Research
Published by: Великотърновски университет „Св. св. Кирил и Методий”
Keywords: Blockchain technology; Smart contracts; Financial intermediation; Germany; Decentralised finance (DeFi); Tokenisation; Regulatory challenges; Legal liability; Digital trust; MiCA.
Summary/Abstract: The financial sector is shifting from centralised intermediation towards decentralised architectures enabled by blockchain and smart contracts. This paper examines their impact on financial intermediation, using Germany as a case study. Combining theoretical analysis with empirical evidence, it identifies a transition from an early focus on payment efficiency to a broader trust-based infrastructure centred on tokenisation, identity management, and interoperable data exchange. The findings show important operational benefits, including faster settlement and lower transaction costs, but also reveal a persistent German adoption gap: high strategic recognition of blockchain coexists with limited operational deployment. The study further identifies major barriers, including software vulnerabilities, oracle dependence, and jurisdictional uncertainty. It concludes that blockchain-based finance requires a hybrid governance model that combines technological automation with legal certainty, regulatory oversight, and institutional trust.
Journal: Социално-икономически анализи
- Issue Year: 18/2026
- Issue No: 1
- Page Range: 130-142
- Page Count: 13
- Language: English
