Distributed ledger technology and the future of finance: tracking innovation, regulation and inclusion

Abstract

The rapid advancement of Distributed Ledger Technology (DLT) is creating an unusual transformation in the banking industry, fostering innovation while challenging existing operating models. This paradigm shift, enabled by the emergence of decentralised technologies, has fuelled the ongoing debate on DLTs by highlighting their multifaceted potential, with impacts beyond their technological underpinnings, including regulatory frameworks, financial inclusion, and the fundamental architecture of the financial system. To contribute to understanding the challenges and impacts on the financial system, this special issue combines several research papers that provide an in-depth analysis of the complex influence of DLT on finance, presenting an argument highlighting the interconnection between technological innovation, financial accessibility, and regulatory development.