The Use of the Blockchain Technology in the Banking Industry and Its Impact on the Financial System

Ardhendu Sekhar Nanda

Abstract: The banking world has increasingly started to use Blockchain technology as it provides an unprecedented level of security, efficiency and transparency. The paper delves into the complex influence of Blockchain technology on the financial system and reviews the use cases within the financial sector-settlement systems, cross-border payments, fraud deterrence, etc. The paper outlines basic concepts about blockchain, identifies the various components and processes that define and reinforce blockchain and explains some of the instrumental aspects which have helped propagate blockchain technology. This paper concludes with the implications for the future development of this technology in bank sectors and the implications for future research.

Keywords: Blockchain technology, banking, financial system, cross-border payments, fraud deterrence