Integrating Digital Financial Solutions with Blockchain to Enhance Transparency in Bangladesh’s Agri-Food Supply Chain

Background: The agri-food supply chain in Bangladesh is critical for the nation's economic stability and sustenance but faces significant challenges such as lack of transparency, inefficiencies, and information asymmetry. Although Internet of Things (IoT) technologies and blockchain databases have proven effective in addressing these concerns, most blockchain and IoT-based models recommend using cryptocurrencies like Ethereum. However, the use of blockchain-based cryptocurrencies not yet legal in Bangladesh. Given the widespread use of mobile banking solutions such as Bkash, Nagad, and Rocket, there is a need for a legal and practical alternative. Objective: This research investigates how integrating digital financial solutions (DFF) with blockchain technology influences the transparent flow of physical goods and information (PHF) and subsequently enhances transparency in the agri-food supply chain (TASC) in Bangladesh. The study examines two main hypotheses: the impact of DFF on PHF and the resulting effect of improved PHF on TASC. Methods: Utilizing a detailed methodological approach, the study employed IBM SPSS for exploratory factor analysis and IBM AMOS for confirmatory factor analysis (CFA) and structural equation modeling (SEM). These tools were used to evaluate the relationships between DFF, PHF, and TASC, based on data gathered from 400 respondents within Bangladesh's agricultural sector. Results: The study's findings support both hypotheses, revealing a significant positive impact of DFF on PHF, which in turn positively influences TASC. These results underscore the importance of DFF in improving supply chain transparency. Research Implications: This research offers empirical evidence of the effectiveness of integrating DFF with blockchain technology in addressing transparency challenges within the agri-food supply chain. It highlights the potential of these digital solutions to improve efficiency, decision-making, and consumer trust in the agricultural sector, particularly in developing countries like Bangladesh. Originality/Value: This study offers unique insights into the role of DFF in boosting transparency and efficiency in the agri-food supply chain. Focusing on Bangladesh, it presents significant implications for industry practitioners, policymakers, and researchers, demonstrating the transformative potential of integrating DFF with blockchain technology in agricultural supply chain management.