The swift advancement of technology has transformed numerous sectors, particularly the financial services business, with Decentralised Finance (DeFi) emerging as a notable disruptor. To guarantee the sustained development and integration of DeFi, it is necessary to investigate and comprehend the emerging trends in this field. This study presents a bibliometric analysis of 181 Decentralized Finance articles published from 2010 to 2024 in the Scopus database The data were examined and illustrated utilising the VoS viewer platform and R software, yielding both descriptive and visual insights. Authored by 503 researchers across 418 universities, these works span 129 journals and cite 10,428 references. Publications show an annual growth rate of 29.2 %, with 2024 exhibiting unprecedented output. Frontiers in Blockchain leads with six publications, followed by the Journal of Risk and Financial Management. New Zealand tops the citation rankings, led by Auckland University with 338 citations. Bellavitis C. and Chen Y. are the most prolific authors each with 338 citations. The cluster analysis identifies six thematic areas, offering insights into various aspects of decentralized finance. This study offers critical insights for academics, policymakers, and industry practitioners by mapping DeFi's transition from conventional financial systems to decentralized ecosystems. The findings illuminate research gaps, propose future research avenues, and underscore the necessity of developing policies and cyber hygiene protocols to mitigate the risks of decentralized finance. This work thus serves as a valuable resource for advancing the discourse on DeFi and its implications for financial innovation.
The decentralization of international payments is emerging as a transformative trend in the global financial system, driven by blockchain technology, decentralized finance (DeFi), cryptocurrencies, and central bank digital currencies (CBDCs). This paper explores the shift from traditional, centralized payment infrastructures toward decentralized alternatives, assessing their impact on transaction efficiency, cost reduction, financial inclusion, and financial stability. A special focus is placed on the evolving role of the Society for Worldwide Interbank Financial Telecommunication (SWIFT), historically the backbone of international cross-border payments. Through a combination of theoretical review and empirical time series analysis based on SWIFT message data from 2014 to 2022, the study evaluates SWIFT’s resilience and adaptation in the face of decentralization pressures. The findings reveal a permanent upward trend in SWIFT traffic, coupled with seasonal fluctuations, suggesting that while decentralization is expanding, SWIFT remains a central actor by innovating its infrastructure. The study also discusses the regulatory challenges posed by decentralized systems and the need for balanced frameworks to foster innovation while safeguarding stability. This research concludes that international payments, where traditional and decentralized models seem to coexist.
This paper investigated this timeless problem of tax evasion with the use of cryptocurrencies in a post-blockchain reality, in terms of legal grey zones and regulatory frameworks in various jurisdictions. Tax evaders have taken advantage of the legal grey areas, decentralized finance (DeFi) protocols, and privacy-based tools in order to hide their transactions despite the blockchain being transparent. The study used a qualitative multinational comparative research approach in which the authors have used document research and interviews with experts to examine enforcement processes in different jurisdictions including the United States, Canada, Germany, Japan, Australia and Nigeria. Conclusions were that effective statutory frameworks, high technological means of enforcement and stringent penalties were found to impact on the compliance rates positively as can be seen in Germany and Japan. Conversely, in other countries, there were high cases of non-compliance due to weakly disunity of regulation and little technological capacity, e.g., Nigeria and Canada. The introduction of DeFi became another problem since it eliminated centralized intermediaries and made the traditional tax pay reporting system more complicated. Moreover, the paper has highlighted that enforcement tactics should give due attention to enable them to balance between surveillance and privacy safeguards to keep the citizens trusty and willingly follow the law. The solution policy proposals involved integration of legal and legislative frameworks across countries globally, the integration of automated reporting solutions and investment in compliance solutions that preserve privacy. Future study on taxpayer conduct, technological breakthroughs and inter-jurisdictional cooperation to come up with resilient tax governance systems should be a matter of priority. This study added to the argument about an effective and fair establishment as an economy, as well as tax frameworks, goes digital.
Digitalization is reshaping global consumption patterns and exposing the limits of value-added tax (VAT) regimes designed for an analogue economy. While Brazilian tax-reform proposals focus on merging six cascading levies into a single VAT-style tax, this structural simplification alone will not align the system with the realities of cross-border electronic commerce. Drawing on OECD guidelines and the BEPS Action 1 report, this article reviews two decades of international debate on destination-based VAT, especially for business-to-consumer supplies of intangibles. It highlights the practical impasse surrounding customer identification, jurisdictional allocation and collection in high-volume, real-time digital marketplaces. The paper argues that recent suggestions to shift liability to dominant e-commerce platforms, although politically feasible, still rely on “verified self-identification” and fragmented registration procedures that are ill-suited to the velocity of automated transactions. As a forward-looking alternative, the study explores how distributed-ledger technology—particularly smart-contract-enabled split-payment mechanisms executed on blockchain networks and settled with central-bank digital currencies—could embed compliance by design, enhance traceability, and lower administrative costs for both taxpayers and revenue authorities. Implementation prerequisites (digital identities, standardized e-invoicing, regulatory sandboxes) and technological hurdles (scalability, interoperability, tokenization) are mapped, providing a research agenda for a VAT 4.0 architecture. The conclusion contends that harnessing blockchain’s immutability and programmability is essential for a resilient, fraud-resistant indirect-tax system capable of addressing the borderless nature of 21st-century commerce.
The rapid proliferation of cryptocurrencies has presented significant challenges to tax authorities and financial regulators worldwide. This study critically examines the legal, institutional, and regulatory frameworks governing cryptocurrency taxation across jurisdictions, focusing on the inconsistencies, loopholes, and enforcement difficulties that hinder effective compliance and oversight. The decentralized nature of blockchain-based financial systems, alongside the anonymity of cryptocurrency transactions, complicates traditional taxation and regulatory models. The primary objective is to identify and analyse the key regulatory challenges, evaluate legal frameworks in selected jurisdictions, and provide recommendations for policy harmonization and improved compliance mechanisms. Using a systematic literature review of 40 peer-reviewed articles from 2013 to 2024, this study synthesizes academic insights across legal, financial, and technological domains. Inclusion criteria focused on papers discussing cryptocurrency taxation, DeFi, AML, and regulatory policy analysis. The review reveals fragmented tax treatment, limited enforcement capacity, growing use of DeFi tools to evade compliance, and the lack of international regulatory alignment. Current regulatory models are outdated and jurisdiction-specific, making them ineffective against borderless crypto activity. The study recommends global regulatory harmonization, adoption of risk-based frameworks, public-private cooperation, and investment in regulatory technology and capacity building.
Equitable education systems contribute to fostering thriving societies. However, decentralization reforms in school finance pose challenges to equity and social justice. Using longitudinal multilevel models, we examined the trends in equity of local education funding distribution in 250 Israeli local authorities from 2014 to 2020. Our findings revealed a consistently inequitable allocation: high-SES and majority-populated areas allocated double the resources compared with low-SES and minority-populated areas, with funding disparities increasing over time. These findings suggest the need for regulations governing local funding, particularly in diverse societies, to promote equity in education finance.
Fran Brahimi, Mariel Frroku, Skënder Uku, Emiljan Mustaqe
A significant part of the literature on fiscal decentralization confirms that the greater the ability of decentralized governments to adapt policies to local preferences and to be innovative in providing public services, the greater the potential for investments and economic growth. This paper examines the dynamic effects and relationship between own source revenues, unconditional transfers, and local public investments. Over the past decades, fiscal and financial decentralization in Albania has made steady progress. However, the increasing responsibilities of local governments have intensified the need to raise the share of local revenues and expenditures relative to GDP and increase revenue from unconditional transfers. Following the administrative-territorial reform, fiscal decentralization has dynamically evolved, boosting local public revenues and granting greater discretion in their use to meet community needs. The specific law on local self-government finances led to increases in both own revenue and revenue from unconditional transfers. Further reforms have improved local public finance management, including local budgeting reforms, enhanced transparency of tax collection and expenditure, and self-assessment and monitoring of local government's financial status. These modernization efforts related to local finances have yielded positive results regarding macroeconomic stability, fund predictability, and transparent use of public funds. Consequently, central and local governments prioritize public investments in infrastructure and sector revitalization in their budgets. Local public investments have risen annually, driven by increased local income from taxes and government transfers. This growth reflects the focus of local and central development policies on addressing infrastructure and logistical challenges. The consolidation of decentralization and stable central budget transfers have created favorable conditions for local governments to implement new policies enhancing service quality and public investment performance.
Purpose The purpose of this article is to critically analyse the value-added tax (VAT) levied in South Africa in respect of non-fungible token (NFT) transactions.Motivation NFTs represent a novel category of tradable digital assets that use blockchain technology. The South African Revenue Service (SARS) has not issued any guidelines on the VAT treatment of NFTs and therefore the VAT treatment is uncertain.Design/Methodology/Approach A doctrinal research methodology, which included a comparative study with other jurisdictions, was employed to critically analyse the VAT levied in respect of NFT transactions.Main findings This article found that an NFT transaction constitutes a “taxable supply” and that it can constitute the “supply” of “goods” or “services”. Although the VAT consequences of NFT transactions that constitute “goods” are easily established, the VAT consequences of NFT transactions that constitute “services” remain uncertain. The classification of whether the services qualify as financial services, electronic services or imported services remain uncertain.Practical implications The findings of this article accordingly suggest that legislative amendments be made to the VAT Act or that guidance be issued by SARS to clarify the VAT consequences of NFT transactions.Novelty/Contribution Academic research on the VAT treatment of NFTs is also limited. This was the first study in South Africa to critically analyse the VAT treatment of NFT transactions.
In accordance with the Imperial Constitution of 1871, the German Empire of the late nineteenth and early twentieth centuries was a federal state. The governments of the center (the Reich) and the federal states pursued a fiscal policy that had some features of “proto-competitive” federalism. Over the subsequent fifty years, however, German federalism evolved toward fiscal federalism. This transition was finally consolidated during 1919 and 1920 due to some endogenous factors and even more to exogenous ones. The article is based on statistical material as well as research from various studies, including those available from the library of the Goethe-Institut. The article compares the extent to which there were indications of proto-competitive federalism in the German budgetary system prior to Matthias Erzberger’s (finance minister of the German Empire) financial reforms (1919–1920) and indications of fiscal federalism after them. The transformation in both the distribution of power and responsibility as well as in provision of resources by various levels of the budgetary system to support those changes during the transition from proto-competitive to fiscal federalism is analyzed. The attempt to strike a balance between the fiscal interests of the center, federal states, and municipalities is explored; and equalization is singled out as a new function of the empire’s budget process. The creation of a so-called self-sufficient economy in the empire just before the First World War and its subsequent survival under pressure from sanctions and international isolation demanded a flexible balance between centralization and decentralization of spending powers along with an appropriate allocation of resources. Fiscal federalism through centralization of funds allowed Germany to begin recovery from geopolitical and socio-economic challenges, while maintaining decentralization primarily in non-tax revenues encouraged local governments to continue developing their economies. The logic derived from this historical study of the changing models of German fiscal federalism is also applicable to Russia: the reduction of revenues and growth of expenditures in the Russian Federation’s federal budget in recent years makes centralization of fiscal resources at the federal level more important, and the growth of expenditures in the regions and municipalities necessitates transfers and equalization measures.
Understanding how central and local governments share resources and responsibilities is crucial for analyzing political and economic systems.Decentralization is not a one-size-fits-all solution for enhancing local government efficiency and responsiveness.While it was once believed to lead to better governance and civic engagement, fiscal challenges (such as vertical fiscal imbalances, soft budget constraints, and the flypaper effect) can undermine fiscal discipline and efficiency, potentially causing fiscal crises at the subnational level.This thesis examines fiscal decentralization and public finance in Brazil through three empirical essays.First, I explore the financial impacts of extreme weather events on local public finances in Brazil.The findings show that droughts do not significantly influence intergovernmental transfers, causing financial strain, while floods result in increased government grants.However, this financial boost does not lead to better spending on flood mitigation, indicating a moral hazard associated with reliance on higher-level government resources.Second, I investigate the impact of territorial divisions on local governments.The analysis, using voter turnout and financial data, shows that administrative divisions initially boost electoral engagement, though this effect fades over time.Territorial fragmentation also increases reliance on vertical transfers while raising expenditures without significantly affecting fiscal balance.Third, I evaluate the Program for the Modernization of Tax Administration (PMAT), which was designed to enhance local tax collection.This analysis shows that the program had no significant impact on tax collection, highlighting the ineffectiveness of modernization efforts aimed at reducing municipal reliance on intergovernmental transfers.
The emerging markets are fast gaining relevance in the revolution of digital finance. With the continued growth of cryptocurrency and decentralized finance (DeFi) technologies, governments in these jurisdictions are confronted by a reality crisis, namely, how they can implement tax regimes that are both revenue-generating and innovation-friendly without toxicizing the regulatory landscape. In the paper, the complex issues of taxation of crypto assets and DeFi activity in emerging economies are discussed, structural, technological, and institutional barriers to the conventional tax framework are presented and complicate the taxation of cryptocurrency and related activities. A mixed methods strategy (applying qualitative stakeholder information to quantitative modelling and comparative policy research) helps to reveal how current tax regimes, in most cases, fall behind market development, which results in loss of revenue, enforcement gaps as well as non-intended incentives to informal economic responses. We suggest that effective policy frameworks should strike the right balance between revenue collection and fairness, enforceability and respect of decentralized spirit of DeFi. We identify practical solutions, including adaptive regulatory sandboxes, blockchain-based reporting solutions, and collaborative international standards that can all help build a resilient but adaptable tax regime by reviewing country case studies and the best practices of other countries. The results of our findings indicate that the emerging markets can use technology and cross sector partnership to make their tax systems engines of compliance and innovation. Finally, the study offers a roadmap to policymakers in an attempt to have fair, efficient, and progressive cryptocurrency taxation of crypto assets and decentralized finance.
Abstract This chapter provides an overview of the complex interplay of taxation and Financial Technology (FinTech). International taxation has become substantially more sophisticated with the evolution of the global digital economy. This development includes the creation of virtual and online new services and activities and the construction of new FinTech and distributed ledger technology (DLT) forms of business activity. Recent efforts to address the issues concerned began with the Base Erosion and Profit Shifting Project (BEPS Project) of the Organization for Economic Cooperation and Development (OECD). The chapter explains how domestic and international taxation rules are attempting to manage the complex matters that arise concerning the digitalization of the economy and the continued rise of cryptoassets and cryptocurrencies.
Enuma Ezeife, Eseoghene Kokogho, Princess Eloho Odio, Mary Oyenike Adeyanju
The rapid evolution of tax regulations in the United States, coupled with increasing digital transformation in financial compliance, necessitates the development of agile, scalable, and efficient tax technology solutions. Traditional tax management systems, often rigid and monolithic, struggle to adapt to dynamic regulatory changes, increasing enterprise demand for flexible, technology-driven approaches. This review explores Agile Tax Technology Development as a conceptual framework that integrates agile methodologies with advanced digital solutions to enhance efficiency, scalability, and compliance in enterprise tax management. Agile methodologies, such as Scrum, Kanban, and SAFe, provide iterative and adaptive software development models that allow tax technology teams to rapidly respond to regulatory updates and evolving business needs. The review examines key components of agile tax technology, including cloud-based infrastructure, API-driven architectures, automation, and artificial intelligence, which collectively enable real-time tax processing, predictive analytics, and seamless integration with financial systems. Additionally, it discusses the role of cross-functional collaboration among tax professionals, software developers, and regulatory experts to ensure compliance and continuous improvement. Scalability is a critical factor in enterprise tax solutions, requiring cloud computing, microservices architecture, and distributed ledger technologies to efficiently process vast amounts of tax data. This study highlights best practices in Agile Tax Technology Development by analyzing case studies from leading enterprises and government initiatives. Furthermore, it addresses challenges such as integrating agile frameworks into legacy tax systems, ensuring cybersecurity in financial data processing, and overcoming organizational resistance to agile adoption. Ultimately, this review provides a forward-looking perspective on the future of tax technology in the U.S., emphasizing the need for continuous innovation, automation, and agility in response to an increasingly complex regulatory landscape. The findings serve as a guideline for enterprises seeking to modernize their tax compliance strategies while maintaining operational efficiency and regulatory adherence. Keywords: Agile Tax Technology, U.S, Efficient Enterprise Conceptual Framework.
Abstract The integration of Artificial Intelligence (AI) and decentralized economies is redefining wealth distribution by enabling autonomous financial systems, AI-powered smart contracts, and decentralized governance models. AI enhances decentralized finance (DeFi) by optimizing liquidity management, predictive analytics, and risk assessment, making financial services more accessible and inclusive. Through AI-driven tokenized economies, self-sovereign identities (SSIs), and automated economic decision-making, individuals—especially unbanked populations—can participate in global wealth creation without traditional financial barriers. AI-powered Decentralized Autonomous Organizations (DAOs) are further revolutionizing financial governance by ensuring transparent, algorithmic decision-making and equitable wealth allocation. However, challenges such as AI bias, cybersecurity risks, regulatory uncertainties, and scalability limitations must be addressed to build sustainable AI-driven decentralized financial ecosystems. This chapter explores the intersection of AI, blockchain, and decentralized finance, offering insights into how AI is transforming digital trade, financial inclusion, and economic autonomy while shaping a more equitable, decentralized global economy. Keywords AI-driven economies, decentralized finance, DeFi, AI-powered smart contracts, wealth distribution, DAOs, blockchain governance, tokenized economies, financial inclusion, AI in economic decision-making, self-sovereign identities, decentralized marketplaces, economic autonomy, AI-driven wealth redistribution, predictive analytics in finance, AI in decentralized governance.
Abstract Decentralized finance (DeFi) is gaining momentum in the world of banking, finance, and beyond. Yet, there remains a notable lack of scholarly research addressing the foundational principles and concepts underlying DeFi. In response to this gap, this study undertakes an extensive investigation into DeFi, drawing upon existing academic literature and insights from industry experts to develop a taxonomy of DeFi's attributes, operational models, and associated risks. This classification sharpens the definition of DeFi and yields critical insights for scholars and industry professionals keen on advancing DeFi's technological applications. By pinpointing essential characteristics of DeFi, mapping out its diverse business models, and highlighting the risks for DeFi users, this research contributes to the academic dialogue. It lays down a comprehensive framework for understanding DeFi, paving the way for subsequent studies and practical implementations in this dynamic area.
U ovome radu analiziraju se modeli oporezivanja kriptovaluta u Republici Hrvatskoj te se uspoređuju s praksom u odabranim zemljama, a to su: Australija, Slovenija, Sjedinjene Američke Državei Ujedinjeno Kraljevstvo. Hrvatska još uvijek nema poseban zakon o kriptovalutama, već se oporezivanje provodi prema postojećim poreznim propisima, pri čemu se kriptovalute tretiraju kao financijska imovina. Kroz komparativnu analizu u radu se identificiraju prednosti i nedostaci hrvatskog modela s posebnim naglaskom na porezno izuzeće za dugoročne investicije i izuzeće za zamjenu kriptovaluta, ali i na pravnu nesigurnost zbog nedostatka jasnih smjernica. Radom se zaključuje donošenje posebnog zakonodavstva i usklađivanje s europskim regulatornim standardima ključno za osiguranje pravne sigurnosti, učinkovitosti i konkurentnosti hrvatskog poreznog sustava za kriptovalute.
Joseph Mamman, Muhammad Bashir Abdullahi, Oluwaseun Adeniyi Ojerinde
Background/Aim: Tax compliance remains a significant challenge for governments worldwide, as traditional VAT and income tax systems are often inefficient, prone to fraud, and administratively complex. Blockchain technology presents a potential solution by offering transparency, immutability, and decentralization, which can enhance tax compliance processes. This study explores the application of public and private blockchain configurations in tax administration, evaluating their effectiveness in fraud prevention, operational efficiency, and regulatory adaptability. The aim is to determine the comparative advantages and limitations of these blockchain models in VAT and income tax compliance and propose a framework that optimizes their integration into existing tax systems. Methods: A comparative analysis of public and private blockchain configurations was conducted, focusing on key performance metrics such as fraud reduction, cost efficiency, transparency, data privacy, and compliance accuracy. Public blockchains, such as Ethereum with IPFS, were assessed for their role in real-time invoice verification and VAT compliance, while private blockchains, such as Hyperledger Fabric, were evaluated for their secure handling of income tax data. The study also examines regulatory challenges, interoperability issues, and technological constraints affecting blockchain adoption in tax administration. Results: The findings indicate that public blockchains significantly enhance transparency and fraud detection, reducing invoice fraud by 90% and lowering administrative costs by 85%. However, their limited data privacy raises concerns for transactions involving sensitive financial information. In contrast, private blockchains prioritize data security and controlled access, ensuring 95% data privacy and 88% compliance accuracy in income tax reporting. Despite these advantages, private blockchains incur higher operational costs and require robust governance mechanisms for effective implementation. The study also identifies regulatory uncertainty, interoperability with existing tax infrastructures, scalability constraints, and technological complexity as key barriers to blockchain adoption in tax compliance. Conclusion To maximize the benefits of blockchain in tax administration, a hybrid blockchain framework is recommended, combining public blockchain transparency for VAT compliance with private blockchain security for income tax management. Policymakers must establish clear regulatory frameworks, invest in scalable digital infrastructure, and promote system interoperability to facilitate adoption. A phased implementation strategy, incorporating pilot programs, public-private partnerships, and targeted policy incentives, is crucial for a smooth transition to decentralized tax compliance. Future research should explore cross-border blockchain tax models, AI-driven fraud detection, and the economic implications of blockchain-based tax compliance to further enhance the effectiveness of this technology in global tax governance.
The increasing prominence of crypto asset transactions has brought their tax implications into focus. This thesis explores whether returns from Decentralized Finance (DeFi) transactions, particularly staking activities, can be classified as interest for tax purposes under South African law and international tax treaties, specifically the 2017 OECD Model Tax Convention on Income and Capital (OECD Model). A comprehensive legal analysis, supported by an exemplar, is used to determine how these innovative financial transactions align with existing legal frameworks both domestically and internationally. South Africa, consistent with other jurisdictions, does not classify crypto assets as fiat currency or legal tender. Current guidance suggests that income derived from crypto asset transactions is subject to general tax rules, potentially taxed as ordinary income or capital gains. This paper assesses whether the returns from staking crypto assets resemble interest and could trigger the application of South Africa's withholding tax on interest (WTI). Section 24J of the Income Tax Act provides a non-exhaustive list of items considered as interest in relation to financial and lending arrangements, with the underlying principal in common law being that interest is compensation for the advancement of credit. Interestingly, across the definition under section 24J and the common law definition, the mutual understanding is that interest is not confined to arise from money or currency and can take various forms in substance. Under the OECD Model, interest is similarly defined as income from debt claims, with no explicit reference to money or currency. By contrast, the UK acknowledges similarities between DeFi returns and traditional interest but maintains that interest can only arise from money or currency, thus excluding DeFi returns from being considered as interest. This thesis examines whether staking returns from DeFi can be classified as interest under Article 11 of the OECD Model and whether tax treaties can reduce or eliminate South Africa's WTI on such returns. It concludes that staking returns could potentially be taxed as interest under South African law but underlines the need for clearer regulatory guidance at both national and international levels to address the growing complexities posed by DeFi.
The rapid expansion of cryptocurrency markets has fundamentally challenged the architecture of traditional tax systems.As digital asset transactions increasingly bypass institutional oversight, national and international tax frameworks remain fragmented, reactive, and insufficient.This paper critically examines the structural, technological, and policy-driven barriers that inhibit global tax systems from effectively regulating cryptocurrency conversions, particularly the transformation of digital assets into fiat currencies.Drawing upon a comparative analysis of tax regimes across the United States, European Union, United Arab Emirates, and Singapore, this study identifies systemic inconsistencies in the classification of crypto assets, the recognition of taxable events, and the enforcement of cross-border reporting standards.The research highlights the growing prevalence of decentralized finance (DeFi) platforms, peer-to-peer exchanges, and privacy-enhancing technologies, which further complicate tax compliance and erode the ability of authorities to trace digital wealth.Using an interdisciplinary framework grounded in regulatory arbitrage theory and institutional economics, the paper explores the interplay between policy inertia, technological complexity, and jurisdictional competition.It critically assesses the limitations of emerging efforts such as the OECD's Crypto-Asset Reporting Framework (CARF) and FATF's Travel Rule, arguing that without coordinated global standards, crypto tax evasion will persist through legal voids and regulatory arbitrage.The study concludes with a set of policy imperatives for achieving equitable, technologically feasible, and internationally harmonized approaches to digital asset taxation-ensuring tax integrity without stifling innovation or violating digital privacy rights.