Blockchain-driven optimization of financial systems: enhancing transparency and efficiency in cross-border transactions and regulatory compliance

Economic Annals-XXI: Volume 214, Issue (3-4), Pages: 58-63

Citation information
Shavkatov, N., Elmirzaev, S., Mukhamedov, F., Karimov, A., Abdurakhimova, D., & Meyliev, O. (2025). Blockchain-driven optimization of financial systems: enhancing transparency and efficiency in cross-border transactions and regulatory compliance. Economic Annals-XXI, 214(3-4), 58-63. doi: https://doi.org/10.21003/ea.V214-08

Navruzbek Shavkatov
D.Sc. (Economics),
Department of Corporate Finance and Securities,
Tashkent State University of Economics
49 Islom Karimov Str., Tashkent, 100066, Uzbekistan
n.shavkatov@tsue.uz
ORCID ID: https://orcid.org/0000-0003-1305-2507

Farkhod Mukhamedov
D.Sc. (Economics),
Department of Corporate Finance and Securities,
Tashkent State University of Economics
49 Islom Karimov Str., Tashkent, 100066, Uzbekistan
farkhodmukhamedov@tsue.uz
ORCID ID: https://orcid.org/0000-0002-0774-5975

Dilora Abdurakhimova
D.Sc. (Economics),
Department of Finance and Financial Technologies,
Tashkent State University of Economics
49 Islom Karimov Str., Tashkent, 100066, Uzbekistan
dilora.abduraximova@tsue.uz
ORCID ID: https://orcid.org/0000-0003-1588-268

Samariddin Elmirzaev
D.Sc. (Economics),
Department of Corporate Finance and Securities,
Tashkent State University of Economics
49 Islom Karimov Str., Tashkent, 100066, Uzbekistan
s.elmirzaev@tsue.uz
ORCID ID: https://orcid.org/0000-0002-4493-6316

Akramjon Karimov
D.Sc. (Economics),
Department of Corporate Finance and Securities,
Tashkent State University of Economics
49 Islom Karimov Str., Tashkent, 100066, Uzbekistan
a.karimov@tsue.uz
ORCID ID: https://orcid.org/0000-0001-9426-8777

Obid Meyliev
D.Sc. (Economics),
Department of Corporate Finance and Securities,
Tashkent State University of Economics
49 Islom Karimov Str., Tashkent, 100066, Uzbekistan
meyliyev_obid@tsue.uz
ORCID ID: https://orcid.org/0000-0002-8586-8858

Blockchain-driven optimization of financial systems: enhancing transparency and efficiency in cross-border transactions and regulatory compliance

Abstract. Increased transparency and effectiveness in cross-border transactions and compliance with regulators are the most urgent needs of the world financial system, especially in emerging economies such as Uzbekistan. This study evaluates the potential of blockchain technology as a cutting-edge solution to simplify such processes. The present study was conducted using a mixed (qualitative-quantitative) approach and through data collection from financial and IT experts in Uzbekistan. The results of the research indicate that the application of blockchain can lead to a mean reduction of 71.9% in expense and a reduction of 95.7% in the time of transaction. Additionally, the inherent characteristics of this technology in generating transparency and an auditable record facilitate better regulation and reduced regulatory compliance problems to a large degree. However, the biggest barriers to adoption were perceived as lacking adequate regulatory framework and no adequate human resources. This research points operational bridges to such barriers through pilot project deployments in priority areas such as remittances and trade finance.

Keywords: Blockchain; Financial System; Cross-Border Transactions; Regulatory Compliance; Uzbekistan

JEL Classifications: Е24; Е41; Е64; I18; J28; J31

Acknowledgements and Funding: The authors received no direct funding for this research

Contribution: The authors contributed equally to this work.

Data Availability Statement: The dataset is available from the authors upon request.

DOI: https://doi.org/10.21003/ea.V214-08

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Received 2.02.2025
Received in revised form 16.02.2025
Accepted 23.02.2025
Available online 29.04.2025