Issue: № 9, 2025
Doi: https://doi.org/10.37634/efp.2025.9.17
The paper is aimed at a more detailed analysis of potential advantages of blockchain technology in international financial operations. The main focus is on researching advantages and comparing them with traditional methods of conducting international financial operations, and the secondary focus is to identify respective drawbacks and provide their short overview. The paper concludes with a couple of suggestions for future research. International financial operations are one of the key elements of the functioning of any modern economy. However, methods and efficiency of their implementation today are not the best, and there is an increasing interest in their modernization. Digital methods of conducting international transactions are usually cheaper than traditional ones. Blockchain – a distributed ledger technology, may be the solution that will help bring international financial operations to a new level of efficiency thanks to its potential advantages: lower costs, increased efficiency, lower carry out time, as well as a higher level of transparency, traceability, and security. These advantages can both improve the quality of conducting international financial operations, but also provide additional benefits for businesses, that will be able to reach more client on international markets. At the same time, for a more complete understanding of this technology’s potential, it is worth exploring its corresponding shortcomings: weak regulatory framework, the problem of scalability and stability of operation, and cybersecurity. Weak regulatory framework doesn’t allow for a faster adoption of the technology, scalability and stability of operation are issues that can be solved mainly via evolution of the technology, and cybersecurity in this case is partially inherent to the feature of the technology – absence of the central managing institution.
Keywords : blockchain, decentralization, cross-border operations, cybersecurity, distributed ledger technology, digital assets, international financial operations, remittances, cost efficiency in international payments, automation of financial processes, 24/7 borderless transactions
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