Can blockchain improve cross-border payments without regulatory hurdles?

Blockchain technology could redefine traditional financial processes, says Paul Giordanovice president of digital assets at MARA.

Giordano, who was scheduled to speak at the upcoming Benzinga Future of Digital Assets event, highlighted the potential for efficiencies in areas such as cross-border payments and transaction clearing.

He also highlighted the challenges, particularly those posed by the regulatory framework.

Streamlining financial operations with blockchain

Giordano explained that blockchain integration could address long-standing inefficiencies in the financial sector, reducing the reliance on intermediaries and thereby reducing transaction costs. “Blockchain technology has the potential to increase the efficiency of processes such as cross-border payments, settlements and transaction clearing by bypassing intermediaries and reducing fees,” he said. He noted that by reducing the need for intermediaries, blockchain paves the way for faster and more affordable transactions while increasing security.

Giordano added that blockchain’s transparency and traceability also promise to improve transaction security. He highlighted the potential of blockchain to enable new products, including asset tokenization, smart contracts and digital currencies.

Regulatory complexities remain a challenge

Despite its benefits, Giordano acknowledged that regulatory issues pose a significant barrier to integrating blockchain into traditional finance. He cited several areas where regulatory alignment is essential, including jurisdictional issues, anti-money laundering (AML) requirements, know-your-customer (KYC) standards and accounting protocols. . “To reach their potential, blockchain technologies must resolve regulatory frameworks such as complexities related to jurisdiction, AML, KYC and accounting standards,” he explained.

As the industry explores blockchain applications, Giordano believes that meeting these regulatory standards will be necessary to achieve broader adoption in the financial sector. The Benzinga Future of Digital Assets event will serve as a platform for discussion on how blockchain technology can align with traditional finance while meeting regulatory requirements.

As the digital assets market continues to mature, the convergence of regulatory changes, M&A activity, and adoption trends will define the future of this dynamic field. Benzinga’s Future of Digital Assets event in New York this November will provide industry leaders and investors with a platform to further explore these developments, providing insight into the evolving regulatory environment and the latest dynamics of the market.

Image: Reto Scheiwlliier from Pixabay