Why Finance Veterans Remain Skeptical About Blockchain Blockchain has been a topic in finance for over a decade, yet many seasoned finance, wealth management, and economics professionals remain cautious. They often question how blockchain fits into existing financial practices, reflecting core skepticisms about its practical applications, necessity, and understanding within finance. Uncertainty About Practical Applications Despite blockchain’s promises—faster settlements, enhanced security, and improved transparency—implementing these advantages across banking, accounting, and operations remains complex. A 2021 APQC survey highlighted hurdles such as lack of industry-wide adoption, skill shortages, trust issues, funding constraints, and interoperability problems. Many organizations struggle to turn blockchain ideas into effective solutions. Doubts About Necessity Some finance professionals question blockchain’s necessity. The same APQC survey found trust deficits and limited understanding hinder adoption. Without a clear ROI, it’s difficult to justify replacing existing, functioning systems. Lack of Understanding Perhaps the biggest barrier is limited knowledge. A 2024 study showed only 13. 7% of financial advisers discuss cryptocurrencies with clients despite growing client interest and increasing approval of crypto ETFs between 2021 and 2024. While bodies like the American Institute of Certified Public Accountants (AICPA) work on blockchain compliance frameworks, there is no standard playbook yet. This lack of clarity leaves leadership teams uncertain. Behavioral finance expert Christina Lynn noted in a 2024 Journal of Financial Planning article that many advisers dismiss cryptocurrencies due to biases, fear, and regulatory concerns, even as investor interest grows. She encourages advisers to educate themselves, adopt balanced views, and guide clients effectively to avoid pitfalls. The 2025 Blockchain Landscape: Key Developments Blockchain is moving from experimental to essential due to regulatory shifts, stablecoin growth, and major institutions investing in on-chain infrastructure. Regulatory Shifts In 2025, the U. S. Federal Reserve relaxed its 2022 stance, no longer requiring banks to seek explicit approval to provide crypto services. The FDIC and OCC signal similar openness, treating blockchain as legitimate. SEC Chair Paul Atkins advocates for clearer, innovation-friendly crypto rules with a structured framework rather than vague enforcement. Stablecoin Expansion Stablecoin market capitalization nears $240 billion as of April 2025, nearing all-time highs. Europe's Markets in Crypto-Assets (MiCA) framework is fully operational, enforcing 1:1 reserve requirements and restricting algorithmic stablecoins without real backing. In the U. S. , legislation like the STABLE Act and the GENIUS Act proposes stricter regulation and licensing for stablecoin issuers with banking-level standards. Private sector innovations include Coinbase waiving fees on PayPal’s PYUSD transactions and facilitating seamless USD redemptions, boosting stablecoin adoption in daily finance. Globally, stablecoins aid cross-border remittances in Asia with greater speed and lower costs and serve as hedges against currency collapse in Latin America—comprising over 80% of crypto transactions in Brazil. Blockchain Goes Big Major banks such as JPMorgan and Citigroup develop blockchain platforms focusing on tokenization, digital asset settlement, and infrastructure for global finance. The global blockchain market is projected to increase from $26. 91 billion in 2024 to $162. 84 billion by 2027. Blockchain in Banking Operations By 2025, blockchain streamlines settlements, enhances compliance, and revolutionizes cross-border payments. - Real-time Settlement and Clearing: Blockchain cuts intermediaries, enabling near-instant settlements. JPMorgan’s Kinexys platform processes over $2 billion daily using JPM Coin for payments across banks and currencies in real time. - Enhanced KYC and AML Compliance: Blockchain’s tamper-proof ledger allows secure sharing of verified customer data, speeding audits and reducing compliance burdens.

JPMorgan’s Liink platform validates over 2 billion bank accounts across 3, 500+ institutions, improving KYC efficiency. - Faster, Cheaper Cross-border Payments: Blockchain reduces settlement times from days to minutes and slashes fees. HSBC and Ant Group piloted real-time HKD tokenized transfers under Hong Kong’s Ensemble Sandbox. Wells Fargo implemented HSBC’s blockchain for FX settlements, reducing risk and accelerating transactions. Deloitte estimates blockchain could cut cross-border payment costs by 40–80%, saving $24 billion annually. Visa’s Tokenized Asset Platform enables minting and transfer of fiat-backed tokens like stablecoins. Considerations for Banks Successful adoption requires integrating blockchain with existing systems (avoiding costly rip-and-replace), upskilling teams across compliance, operations, and IT, and ensuring improved client experiences beyond internal efficiencies. Blockchain in Accounting and Auditing Blockchain is quietly transforming financial data management. - Enhanced Security and Fraud Prevention: Immutable ledgers reduce tampering risks, bolstering financial record integrity. - Increased Transparency: Auditors gain a single, real-time, tamper-proof transaction trail, expediting audits. - Streamlined Reconciliation and Reporting: Shared ledgers enable automatic updates, reducing manual efforts. Challenges include lack of standardization—only preliminary guidance exists from AICPA and IASB—integration with legacy ERP systems, and evolving regulations requiring agile controls. Notably, blockchain enables triple-entry accounting, adding a transparent third record that enhances accuracy and trust. Blockchain for CFOs and Treasurers Blockchain tools offer real-time financial reporting, automated compliance via smart contracts, and asset tokenization for capital raising and liquidity. CFOs and treasurers should prioritize robust access controls, audit processes, and contingency plans for network issues while collaborating with legal and regulatory teams to future-proof operations. Best Practices for Blockchain Compliance 1. Establish Robust Internal Controls Implement segregation of duties, role-based access, and strict transaction validations to mitigate risks of fraud and mismanagement. 2. Engage Early with Regulators Proactively build relationships with authorities to adapt to guidance timely — exemplified by Swiss crypto bank SEBA’s early partnership with FINMA, enabling legal operations in crypto and traditional assets. Organizations like the Crypto Valley Association aid in shaping clear policies. 3. Invest in Ongoing Training Regularly update finance and compliance teams on blockchain fundamentals, regulatory changes, and best practices—from junior auditors to senior officers—to remain agile in a dynamic environment. Actionable Steps for Finance Professionals For Bankers Start with focused, practical applications such as speeding settlements, enhancing compliance, or increasing loan servicing transparency. Pilot targeted blockchain initiatives in trade finance or cross-border payments to minimize risk. Partner with fintech blockchain specialists to leverage expertise without overhauling internal systems. For CPAs and Auditors Stay abreast of evolving standards, especially AICPA guidance on blockchain auditing. Develop technical skills to audit blockchain records properly, understanding blockchain data structuring and verification. Advocate for blockchain adoption to increase transparency, reduce risk, and enhance financial reporting credibility. For CFOs and Treasurers Evaluate blockchain projects financially, considering impacts on cash flow, balance sheets through tokenization, and treasury operations via stablecoins or blockchain settlements. Reflect potential blockchain strategies in strategic planning. Engage actively with peers, industry groups, and blockchain events for insights to identify opportunities and avoid common pitfalls. Conclusion Though skepticism persists, blockchain’s advancing regulatory acceptance, technological maturity, and proven use cases across banking, accounting, and treasury functions position it as an integral part of finance in 2025 and beyond. Finance professionals equipped with realistic expectations, practical knowledge, and proactive compliance approaches will be best positioned to harness its potential.