Blockchain-driven optimization of financial systems: enhancing transparency and efficiency in cross-border transactions and regulatory compliance
Blockchain-driven optimization of financial systems: enhancing transparency and efficiency in cross-border transactions and regulatory compliance

Summary/Abstract: Increased transparency and effectiveness in cross-border transactions and compliance with regulators are the most urgent needs of the world financial system, especially in emerging economies such as Uzbekistan. This study evaluates the potential of blockchain technology as a cutting-edge solution to simplify such processes. The present study was conducted using a mixed (qualitative-quantitative) approach and through data collection from financial and IT experts in Uzbekistan. The results of the research indicate that the application of blockchain can lead to a mean reduction of 71.9% in expense and a reduction of 95.7% in the time of transaction. Additionally, the inherent characteristics of this technology in generating transparency and an auditable record facilitate better regulation and reduced regulatory compliance problems to a large degree. However, the biggest barriers to adoption were perceived as lacking adequate regulatory framework and no adequate human resources. This research points operational bridges to such barriers through pilot project deployments in priority areas such as remittances and trade finance.

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