FINANCIAL MOTIVES FOR THE APPLICATION OF BLOCKCHAIN TECHNOLOGIES IN BANKING
Abstract
The article considers the trends of the modern banking market and identifies prospects for the blockchain technologies use in the financial and economic activities of bank institutions. It was revealed that Ukraine is taking steps to formalize and delineate relations with virtual assets in the legal field. At the moment, the Ukrainian legislation related to the research topic is being clarified and finalized. Scientists have found that opinions on the use of blockchain technologies differ. According to some pessimistic forecasts, this technology will cause significant obstacles for bank institutions, but other scientists believe that blockchain technologies can help develop financial relations. The world experience of using blockchain technologies in banking has been studied. Currently, there is a growing number of businesses that are already involved in blockchain-related projects. It is also found that projects related to blockchain technologies in the banking sector are currently being developed and implemented. Among the implementers of such projects are: JP Morgan Chase, Bank of America, BNP Paribas and Fujitsu and JBA. The concept of blockchain as a distributed book technology and the principles of this technology are defined. The main advantages, disadvantages and ambiguous characteristics of the blockchain from the standpoint of bank security are formulated. The advantages of the blockchain include: reliability, compromise and security. The disadvantages of the studied technology include: energy dependence, energy consumption, new cyber vulnerabilities and the complexity of financial monitoring. It was found that the ambiguous characteristics of blockchain technologies include: confidentiality, transparency, decentralization, lack of standards and novelty for customers. Obstacles to the implementation of the blockchain in financial intermediation have been identified. It is determined that the main financial motives for the use of blockchain in banking include the following: efficiency, security, autonomy and control. Characteristics that are consistent or conflicting with individual motives are identified.
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