Can Blockchain Improve Cross-Border Payments Without Regulatory Roadblocks?

Blockchain technology could redefine traditional financial processes, according to Paul Giordano, vice president of digital assets at MARA.

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

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

Streamlining Financial Operations With Blockchain

Giordano explained that blockchain integration could address long-standing inefficiencies in finance, reducing reliance on intermediaries and thus lowering transaction costs. "Blockchain technology has the potential to increase efficiency in processes like cross-border payments, settlements, and clearing of transactions by bypassing intermediaries and reducing fees," he said. He noted that by reducing the need for middlemen, blockchain offers a path to quicker, more affordable transactions while increasing security.

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

Regulatory Complexities Remain A Challenge

Despite its benefits, Giordano acknowledged that regulatory issues present a significant hurdle for blockchain's integration into traditional finance. He cited several areas where regulatory alignment is essential, including jurisdictional matters, anti-money laundering (AML) requirements, know-your-customer (KYC) standards, and accounting protocols. "To reach its potential, blockchain technologies must solve for regulatory frameworks like complexities around 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 finance. The Benzinga Future of Digital Assets event will serve as a platform for discussions on how blockchain technology can align with traditional finance while navigating regulatory demands.

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

Image: Reto Scheiwlliier from Pixabay