<div xmlns="http://www.tei-c.org/ns/1.0"> The financial industry is undergoing a transformative evolution driven by technological advancements and shifting consumer expectations. "Future Trends and Opportunities: Opportunities for innovation and disruption in the financial industry" provides a comprehensive exploration of key trends shaping the industry's future. From the rise of digital transformation and blockchain to the integration of artificial intelligence and sustainable finance, the abstract highlights the multifaceted opportunities for innovation. Emphasis is placed on enhancing customer experiences, improving operational efficiency, promoting financial inclusion, and addressing the challenges of regulation, cybersecurity, and privacy. The abstract concludes by emphasizing the critical importance of adaptation, continuous innovation, and collaborative efforts between traditional institutions and fintech disruptors to navigate the dynamic landscape and seize the opportunities that lie ahead in the evolving financial ecosystem I. Introduction A. Brief overview of the financial industry B. Importance of innovation and disruption in driving growth C. Purpose of exploring future trends and opportunities II. Current Landscape of the Financial Industry A. Traditional banking and financial services B. Rise of fintech companies C. Emerging technologies (blockchain, artificial intelligence, etc.) D. Regulatory environment and its impact III. Future Trends in the Financial Industry A. Digital transformation and the shift to online platforms 1. Mobile banking 2. Digital wallets 3. Contactless payments B. Blockchain and cryptocurrencies 1. Decentralized finance (DeFi) 2. Central bank digital currencies (CBDCs) 3. Smart contracts C. Artificial Intelligence (AI) and Machine Learning (ML) 1. Robo-advisors 2. Predictive analytics for risk management 3. Chatbots and virtual assistants D. Open banking and API integration 1. Collaboration between traditional banks and fintechs 2. Enhanced customer experience 3. Data sharing and security concerns IV. Opportunities for Innovation and Disruption A. Enhanced customer experience 1. Personalized services 2. Real-time financial insights 3. Seamless onboarding processes B. Improved efficiency and cost savings 1. Automation of repetitive tasks 2. Streamlined back-office operations 3. Enhanced fraud detection and prevention C. Financial inclusion 1. Serving the unbanked and underbanked populations 2. Microfinance and alternative lending solutions D. Sustainable finance 1. ESG (Environmental, Social, Governance) investments 2. Green financing options 3. Social impact investing V. Challenges and Considerations A. Regulatory hurdles B. Cybersecurity concerns C. Privacy and data protection D. Resistance to change in traditional institutions VI. Conclusion A. Summary of key future trends and opportunities B. Importance of adaptation and continuous innovation C. Encouraging collaboration between traditional and new players in the financial industry </div>
Sandhya Sharma, G. Pandi Selvi, Shailaja M L, Arushi Mehta, Aparna Srivastva, Alok Gupta
this is a potentially game-changing development that could come from fusing blockchain technology with IoT and artificial intelligence (AI) to improve the efficiency of smart contracts in the banking industry. We can greatly increase the transparency, security, and efficiency of banking transactions by utilizing the decentralized and rigid nature of blockchain technology, real-time data from Internet of Things (IoT) devices, and artificial intelligence's (AI) intelligent decision-making capabilities. These three things working together make this possible. This paper examines the methods by which these technologies can facilitate operational simplification, fraud reduction, and stakeholder confidence building. The research specifically focused on how these technologies are used. We have out a thorough analysis of numerous fabrics and case studies to highlight the synergistic advantages of this integration. This helps pave the way for it by making a more open and responsible financial environment feasible. By addressing the challenges that are now being encountered and identifying the unspoken pathways that will lead to the deployment of these cutting-edge technologies in the banking institution, this investigation seeks to shed light on the future of financial transactions. We shall conduct this research too.
<h5 class=annotation lang-ru sigil_not_in_toc>Американский суд признал правомерным наложение санкций на криптовалютный миксер <span class=CharOverride-6><b>Tornado Cash</b></span> — своеобразную автоматическую систему обеспечения конфиденциальности владельцев криптовалюты. Суд признал, что для целей санкционного законодательства эту систему можно считать «лицом», а используемые ею смарт-контракты — «имуществом». Поэтому уполномоченный государственный орган может при наличии соответствующих оснований внести систему в санкционный список, а ее смарт-контракты — заблокировать.<br /> Несмотря на спорность некоторых тезисов судьи с формально-юридической точки зрения, общий исход дела вполне соответствует здравому смыслу. Иной подход означал бы капитуляцию правопорядка перед хитроумными техническими средствами обхода санкций.</h5>
Smart Contracts form a predominant tool for today's operations, and it is existing in practically all felds like health, banking, investments etc. It is an alternative that matches the rapidity, and the easiness required by the new era. But legal adjustments are needed to preserve the rights and confront the challenges that come with it.
Smart contracts, while revolutionizing the blockchain with their immutable nature, are prone to attacks such the reentrancy attack. This attack allows malicious adversaries to repeately enter a contract before previous executions are completed. SpartanScript, a custom dialect of Scheme, is a way for developers to write and develop contracts in an experimental blockchain environment like SpartanGold. Compared to cryptocurrencies that use a virtual machine to run on the blockchain, SpartanScript utilizes a simplified interpreter for rapid prototyping. However, SpartanScript does not have a way to detect and warn developers of reentrancy vulnerabilities. Hence, there is a need to implement reliable reentrancy prevention during smart contract development. This project modifies SpartanScript’s interpreter to check smart contract functions that deal with transactions and mark any reentrant vulnerabilities. The addition of new detection functions and the define-r expression checks for locks, modifiers, the checks-effects-interactions pattern, and other vulnerabilities. To demonstrate SpartanScript’s new prevention measures, various reentrancy attacks, such as basic, cross-function, and cross-contracts were created in contracts. Key strategies on how to detect such attacks are implemented in the interpreter so that it warns the developer when such vulnerabilities arises. The results showcased the modified SpartanScript’s ability to identify and mark most vulnerable contracts successfully.
Abstract The use of smart contract technology for contract execution and real-time payment can ensure the timely availability of funds, thus ensuring the security and authenticity of data in power grid transactions. In this paper, we design a digital RMB smart contract model based on blockchain technology and use the hexadecimal model to create, deploy, and execute smart contract functions. And through the DTSC algorithm, smart contracts can be applied to the grid smart payment settlement. At the same time, a privacy protection algorithm for transaction data is proposed, and finally, the grid smart payment settlement system is designed based on smart contracts and privacy protection algorithms. Simulation test results show that the cost required for the digital RMB smart contract proposed in this paper is lower than the existing schemes in terms of invocation and deployment costs. The average chain code invocation delay in smart contract technology decreases when the transaction sending rate increases from 250TPS to 300TPS. Moreover, the on-chain operation time of this system is only 2.69 seconds, which meets the demand of practical power grid smart payment settlement applications. This paper sets the foundation for the efficient operation of the grid smart payment and settlement system and provides a guarantee for payment and settlement security.
Regulating cryptocurrency’s place in America’s most popular retirement savings vehicle generates thorny legal, ethical, and social justice dilemmas. Too little regulation could hurt those at highest risk of underfunded retirement. Too much could exacerbate existing racial, ethnic, and gender inequities. Though recent regulatory efforts suggest 401(k) administrators violate their fiduciary duty of care by offering cryptocurrency investment options to plan participants, the established fiduciary regime protects 401(k) plan participants from cryptocurrency risk while respecting their savings preferences. Yet, the current framework falls short of ethically and equitably serving all plan participants, particularly members of underserved communities— a problem largely unaddressed in academic, industry, or regulatory discourse. This Article demonstrates how regulators’ needlessly paternalistic approach toward cryptocurrency options could disproportionately impact minority retirement savings participation. Applying the existing fiduciary framework and practical mechanisms that plan fiduciaries currently use would minimize cryptocurrency risk to participants without rewriting the rules governing plan administration. This Article also proposes a novel, scientifically supported method by which fiduciaries should convey retirement planning information to improve retirement outcomes for all: via non-traditional media.
Saeed Mohebi Ashtiani, Omid Ali Adeli, Mohammadreza Pourfakharan, Mohammad Hasan Maleki
Smart contracts are one of the most significant applications of blockchain technology, which have gained considerable importance in the financial industry. These contracts promote transparency and enhance good governance in the banking sector. The present research aims to conduct a Futures Study of smart contracts in the banking industry using a scenario-building approach. This research is applied in nature, and methodologically, it is a mixed-methods study. In this research, fuzzy Delphi, fuzzy WASPAS, and interviews with focus groups were used to analyze the data. In the first step, 37 drivers were identified through a literature review and interviews with blockchain experts. These drivers were then filtered using expert questionnaires and the fuzzy Delphi method. Nine drivers were selected for final prioritization using the fuzzy WASPAS method. The filtered drivers were ranked through prioritization questionnaires and the fuzzy WASPAS method. Based on the scores of the fuzzy WASPAS method and considering three criteria—expertise, importance intensity, and certainty level—the drivers of coordination and integration level of banks in adopting new technologies and contracts, as well as the integration level of information systems in the banking industry, were given the highest priority and were selected for scenario mapping. The research scenarios were developed based on the two prioritized drivers and through interviews with focus groups. These scenarios included: Smart Banking, Integrated Banking, Island Banking, and Traditional Banking. Smart Banking represents the ideal scenario, and practical recommendations were developed based on this scenario.
This present study explores the potential of cryptocurrencies in the diversification of a portfolio of rather integrated financial markets or instruments, such as BRICS by employing the mean-variance optimisation approach and the higher-order moments approach. The results indicate that while the theoretical implication of both the mean-variance approach and higher-order moments approach point in the same direction, the latter is more efficient in capturing the asymmetry and the tail risk of the returns, besides the investors' risk-aversion. The results suggest that ETH is the most popular cryptocurrency for portfolio diversification followed by BTC, almost receiving the same asset allocation in different portfolio optimisation strategies. The results also indicate that the potential of cryptocurrencies in portfolio diversification is rather marginal or limited to a risk-averse investor while they may offer an alternative investment avenue for risk-seeking investors. While cryptocurrencies may promise to offer a considerable diversification potential, the allocations to cryptocurrencies must conservatively be made, given the explosive price behaviour of cryptocurrencies in recent times.
This article explores the synergistic effect of combining smart contracts and asset tokenization in the context of transforming financial transactions. The author analyzes the essence and features of smart contracts and tokenization processes, considering their advantages and potential risks in the financial industry. The paper highlights key challenges in implementing these innovative tools, including imperfect legal regulation, ensuring data security and confidentiality, and the volatility of cryptocurrency markets. The author emphasizes the need to create clear legal frameworks, develop security standards and best practices for smart contracts, and foster the development of appropriate infrastructure and ecosystem. Special attention is given to the synergistic effect of combining smart contracts and tokenization. It is noted that such synergy allows for the automation of tokenized asset management processes, ensures transparency and efficiency of transactions, and creates new investment products and business models.
Since 2009, the process of creating virtual financial assets, in particular bitcoin, has been taking place in Ukraine, as in many countries of the world, and the scale of this activity is growing almost exponentially. The lack of state regulation creates the problem of lack of accounting and control of those negative effects on ecology and economy that arise in the process of creating virtual financial assets, i.e. mining. The work analyzes the findings of domestic and foreign scientists regarding the risks inherent in the creation of virtual financial assets, the main of which are the significant consumption of electricity produced from non-renewable sources, carbon and heat emissions, the use of clean water and the creation of electronic waste. Three stages in mining activity are defined and the problems of risk reduction inherent in each stage are defined. The first stage is decisive in terms of preventive actions regarding the risks that will arise in the next stage. At this stage, it is necessary to decide on the location of the equipment, the type of equipment that will be used in the mining process. In our opinion, providing mining with a unique code in KVED and introducing licensing of the specified activity are mandatory actions of the state on the way to reducing the risks associated with the creation of virtual financial assets. Licensing conditions must contain requirements for minimum energy efficiency, setting limits on the use of electricity and Internet traffic, and obligations regarding the safe disposal of electronic waste. At the second stage, it is important to choose the Proof-of-Stake consensus mechanism, which will allow you to save electricity. The third stage involves providing information on the type and amount of resources that were used during mining, as well as on the amount of carbon and heat emissions, during the release of the created assets to the market. This will enable investors to make informed decisions taking into account their attitude to environmental safety. The need for active actions by the state regarding the recognition of mining as a separate type of activity with its inclusion in the KVED and the introduction of licensing with the inclusion of requirements for reducing risks in miners’ activities in the licensing conditions is substantiated.