BLOCKCHAIN TECHNOLOGY IN THE BANKING SECTOR: IMPLEMENTATION PROSPECTS AND REGULATORY CHALLENGES

The purpose of the study is to determine the prospects for implementation and the challenges of regulating blockchain technologies in banking. The author used the method of scientific literature analysis to study authors’ positions on the use of blockchain in banking, the statistical method to study the main indicators of blockchain development, graphical and tabular methods to visualize the results obtained, and methods of generalization and systematization of the material to formulate proposals and conclusions. First, the author studied the development of blockchain technologies and determined their share in the banking sector. It was found that the banking sector accounts for the largest share in the use of blockchain technologies. Next, the author analyzed the peculiarities of blockchain implementation by global banks. Using examples from international banks, the author demonstrates the prospects and feasibility of implementation with a view to optimizing payments and increasing the level of security and protection of both financial and information transactions for their clients. The author also identified promising areas for the use of blockchain technologies in the banking sector. It is noted that the prospect of this technology lies in introducing an updated system with a reliable technology that can withstand fraud, scalability, and security issues during online payments, and blockchain technology, with its decentralized nature, can achieve this. The author analyzed the key regulatory challenges to the integration of blockchain into the banking system and determined the feasibility of creating a comprehensive regulatory system. The author also conducted a study of the development of blockchain technologies using the example of Ukrainian banks and provided prospects for its implementation. As a result, it is determined that the key advantage of blockchain technology is that it can be used to track any movement of assets, which highlights its relevance for use in the banking sector of both global economies and Ukraine.