Blockchain Technology in Financial Accounting: Emerging Regulatory Issues

Abstract

The aim of this paper is to analyze the impact of blockchain technology on the traditional financial ac-counting system both in the short-run and long-run. It is argued that blockchain technology can potentially disrupt the existing accounting system and practices. The decentralized nature of blockchain means that there is no need for a central authority to manage transactions or keep records. This could potentially make financial accounting more ef-ficient and transparent, as well as reduce the risk of fraud. The findings of this study will have implications for the policy-makers, regulators and interested parties to develop an understanding about how blockchain technology can be integrated in the existing financial reporting framework. The paper argues that though blockchain has potential to bring significant changes in the field of accounting and au-diting, there are still a number of challenges which need to be addressed before its widespread adoption. These chal-lenges include lack of standardization, scalability problems and privacy concerns.