POTENTIAL OF USING BLOCKCHANE TECHNOLOGIES IN THE FINANCIAL MARKET

Keywords: blockchain technologies, digitalization, digital technologies, financial market, financial services

Abstract

All over the world, the financial market is a leader in the use of advanced digital technologies. Financial technologies are designed to improve the infrastructure of the financial market. Thanks to the introduction of blockchain technologies, the quality of financial services improves, in particular, the speed of provision increases, the level of diversification of services increases, the cost of services decreases. Statistics show that the financial sector around the world is at the forefront of the structure of digital technology in general and blockchain technology in particular. However, the pace of integration of blockchain technologies into the financial market of Ukraine lags far behind the world. This explains the relevance of the research topic. The purpose of the study is to deepen the theoretical and practical foundations of the use of blockchain technologies in the financial market, to outline the potential use of this technology in the financial market of Ukraine. The following methods of scientific research are used in the work: systematization, generalization, scientific abstraction, analysis, induction, deduction. It is proved that the introduction of blockchain technologies in the financial market improves the quality of financial services, as well as creates a number of other benefits. The functions of the blockchain in the financial market are systematized. The structure of blockchain technology use in the world is analyzed. This allowed us to establish that the financial market ranks second in the world among the areas of use of this technology. The use of blockchain is concentrated in highly developed countries - proves our review. In Ukraine, the introduction of blockchain technologies in the financial market is facilitated by the adoption of the Fintech Development Strategy until 2025. A survey of the blockchain industry in Ukraine revealed a lack of funding in this area, and investment in this area is at the expense of foreign capital. Existing companies in Ukraine that implement blockchain technologies are focused on the international market, the share of companies operating exclusively in Ukraine remains quite low. The potential of blockchain technologies is the reason for the dynamic growth of funding in this area. Blockchain technologies are an important element of innovation in the financial market of Ukraine. However, its disclosure of the potential of its use in the financial market should be supported by appropriate regulatory conditions, which will outline the legal framework and make this area investment-attractive.

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Published
2022-04-26
How to Cite
Verheliuk, Y. (2022). POTENTIAL OF USING BLOCKCHANE TECHNOLOGIES IN THE FINANCIAL MARKET. Economy and Society, (38). https://doi.org/10.32782/2524-0072/2022-38-15
Section
FINANCE, BANKING AND INSURANCE