Blockchain in banking: A comparative review of developments in the USA and Nigeria

Samuel Aderemi 1, *, Uchenna Innocent Nnaomah 2, David Olanrewaju Olutimehin 3, Omamode Henry Orieno 4, Babajide Tolulope Familoni 5 and Tolulope Esther Edunjobi 6

1 Independent Researcher, Canada.
2 Independent Consultant, Nigeria.
3 Christfill Global Enterprises, Lagos Nigeria.
4 University of Bedfordshire, UK.
5 Today's Solutions, Yaba, Lagos, Nigeria.
6 Independent Researcher, London Ontario, Canada.
 
 
Review
International Journal of Science and Technology Research Archive, 2024, 06(01), 108–126.
Article DOI: 10.53771/ijstra.2024.6.1.0034
Publication history: 
Received on 13 February 2024; revised on 20 March 2024; accepted on 23 March 2024
 
Abstract: 
This review paper systematically examines the adoption and impact of blockchain technology within the banking sectors of the United States of America (USA) and Nigeria, offering a comparative analysis of developments across these divergent economic and regulatory landscapes. Through an extensive literature review, the paper synthesizes findings from a range of sources, including peer-reviewed journals, industry reports, and case studies, to explore how blockchain technology is being integrated into banking operations, the challenges encountered, and the opportunities it presents in both contexts.
The analysis reveals that in the USA, the integration of blockchain into banking has progressed significantly, supported by a mature technological infrastructure, a clear regulatory environment, and substantial investments in financial technology innovations. This has facilitated enhancements in transaction efficiency, security, and cost reductions. Conversely, Nigeria’s adoption of blockchain technology in banking is at a nascent stage, primarily focused on addressing financial inclusion and improving the efficiency of cross-border payments. Despite this, regulatory uncertainties and infrastructural deficits pose challenges to its broader adoption.
The paper concludes that while blockchain technology offers the potential to transform banking operations globally, its adoption and impact are heavily influenced by specific national contexts. The study underscores the need for adaptive regulatory frameworks and infrastructure development to fully harness the benefits of blockchain in the banking sector. It advocates for further research into blockchain’s practical applications in banking, emphasizing the importance of cross-country studies to understand its global implications.

 

Keywords: 
Blockchain technology; Banking sector; Financial services; Innovation; Financial inclusion; Digital identity verification; Cross-border payments; Asset tokenization; Smart contracts; Supply chain financing; Regulatory compliance; System interoperability; Infrastructure investment; Skill development; Security and privacy; Fraud prevention; Pilot projects; Phased implementation; Operational efficiency; Stakeholder collaboration
 
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