Why finance veterans are nonetheless skeptical about blockchain
Blockchain has been a part of the finance dialog for over a decade now. But many professionals stay cautious.
Many seasoned professionals in finance, wealth administration and economics typically query blockchain’s relevance, asking, How precisely is blockchain supposed to suit into what we already do?
This query displays a number of key ongoing skepticisms about blockchain inside finance.
Uncertainty about sensible functions
Blockchain affords some huge guarantees: sooner settlements, stronger safety and higher transparency. However truly making use of these guarantees throughout banking, accounting and operations remains to be difficult.
A 2021 APQC survey recognized the principle hurdles: a scarcity of industry-wide adoption, ability gaps, belief points, monetary constraints and issues with interoperability. Even organizations that need to embrace blockchain typically battle to show concepts into working options.
Doubts about necessity
Some finance professionals aren’t satisfied blockchain is critical in any respect.
The identical APQC survey confirmed belief points and a lack of know-how as main causes for the sluggish adoption. With no clear and compelling return on funding (ROI), it’s powerful to justify tearing up present programs that, frankly, nonetheless work.
Lack of knowledge
Possibly the most important impediment? A lack of know-how.
A 2024 research revealed that solely 13.7% of monetary advisers interact with purchasers about cryptocurrencies regardless of growing consumer curiosity and the approval of crypto exchange-traded funds (ETFs) between 2021 and 2024.
Furthermore, whereas teams just like the American Institute of Licensed Public Accountants (AICPA) are attempting to construct frameworks for blockchain compliance and auditing, there’s no customary playbook but. And with out readability, management groups are caught.
This text will intention to deal with every of those skepticisms, finally offering a solution to how blockchain suits into finance in 2025.
Do you know? Christina Lynn, a behavioral finance researcher and authorized monetary planner, highlighted in her 2024 Journal of Monetary Planning article that many monetary advisers dismiss cryptocurrency as a consequence of biases, concern and regulatory issues regardless of rising investor curiosity. She urges advisers to teach themselves, undertake a balanced method, and supply steering to keep away from consumer errors.
The 2025 blockchain panorama: Key developments
Unbeknownst to many, because of regulatory shifts, stablecoins gaining floor and main establishments constructing on-chain infrastructure, blockchain is transferring from experimental to important inside finance. Beneath are the developments serving as key contributors in 2025.
Regulatory shifts
The US Federal Reserve has relaxed its 2022 stance, now not requiring banks to get express approval to supply crypto companies. Comparable alerts from the Federal Deposit Insurance coverage Company and the Workplace of the Comptroller of the Forex present that regulators are beginning to deal with blockchain as a professional instrument.
On the similar time, SEC Chair Paul Atkins is pushing for clearer, innovation-friendly crypto guidelines, transferring away from obscure enforcement techniques and towards a extra structured regulatory framework.
Stablecoin stampede
The stablecoin market capitalization has climbed to just about $240 billion as of late April 2025, brushing up towards an all-time excessive.
Regulators are additionally stepping up. In Europe, the Markets in Crypto-Property (MiCA) framework is now totally stay, laying down clear floor guidelines for crypto belongings. For stablecoins, which means strict 1:1 reserve necessities and a crackdown on something resembling an algorithmic mannequin with out actual backing.
In the meantime, within the US, lawmakers are making strikes, too. The STABLE Act, reintroduced in March, proposes tighter oversight over stablecoin issuers and even suggests a two-year freeze on new algorithmic cash. Alongside it, the GENIUS Act goals to arrange a complete new licensing system for stablecoins, making issuers meet banking-level requirements for reserves, redemption rights and compliance.
The personal sector isn’t sitting nonetheless both. Coinbase just lately waived charges on PayPal’s PYUSD (PYUSD) transactions and now affords seamless USD redemptions. It’s a sensible play to make stablecoins extra seen in day-to-day finance.
And the uptake isn’t simply occurring within the US. In Asia, stablecoins have gotten a go-to for cross-border remittances as a result of they’re sooner and cheaper than conventional strategies. In Latin America, they’re getting used to hedge towards native forex collapses; in Brazil, for instance, stablecoins now make up over 80% of crypto transactions.
In numerous corners of the world, stablecoins are fixing very actual issues.
Blockchain goes huge
Initiatives like JPMorgan’s Kinexys and Citigroup’s permissioned blockchain platform present that main banks are actively investing in tokenization, digital asset settlement and blockchain infrastructure for world finance.
Do you know? The worldwide blockchain market is projected to succeed in $162.84 billion by 2027, up from $26.91 billion in 2024.
Blockchain in banking operations
As of 2025, blockchain helps streamline settlements, tighten compliance, and rework cross-border funds from a headache right into a clean operation.
Right here’s how:
Actual-time settlement and clearing
Shifting cash between banks — particularly throughout borders — was once a sluggish, messy course of. Layers of intermediaries meant delays, excessive charges and loads of room for errors.
By slicing out intermediaries and verifying transactions straight, blockchain allows near-instant settlement, slashing turnaround occasions dramatically.
In reality, JPMorgan’s Kinexys platform (a part of its Onyx suite) now processes over $2 billion in every day transactions, utilizing JPM Coin to settle funds throughout banks and currencies in actual time.
It’s an instance of a stay system dealing with critical quantity with the assistance of a blockchain.
Enhanced KYC and AML compliance
Know Your Buyer (KYC) and Anti-Cash Laundering (AML) checks have all the time been essential — however painfully sluggish and repetitive.
Blockchain affords a wiser approach to deal with them. A tamper-proof ledger permits banks to securely retailer and share verified buyer data, rushing up audits and decreasing compliance complications.
One other real-world instance from JPMorgan is Liink, which runs a blockchain-inspired service known as Affirm, which helps banks validate over 2 billion financial institution accounts throughout greater than 3,500 monetary establishments, dramatically enhancing effectivity for KYC processes.
Cheaper, sooner cross-border funds
Sending cash internationally used to take days and got here with hefty charges.
With blockchain, transactions can settle in minutes, and charges are considerably decrease.
Actual-world strikes:
Even Deloitte estimates that blockchain might slash cross-border fee prices by 40%-80%, saving the {industry} as much as $24 billion a yr.
This all reveals that banks are betting actual cash and actual infrastructure on blockchain delivering actual worth.
Do you know? Visa’s Tokenized Asset Platform (VTAP) permits banks to mint, burn and switch fiat-backed tokens, similar to tokenized deposits and stablecoins.
Concerns for banks
In fact, blockchain isn’t a panacea. There are some things banks want to remember:
- Integration is essential: Blockchain programs must plug into present core banking infrastructure. Full rip-and-replace tasks aren’t sensible (or low cost).
- Coaching issues: New programs gained’t work if the individuals working them don’t know the way. Banks have to upskill groups throughout compliance, operations and IT.
- Buyer expertise comes first: It’s not nearly making inner processes sooner — purchasers have to really feel the distinction, too.
Behind the scenes, accounting and auditing corporations are additionally discovering that blockchain can repair long-standing ache factors. That’s what shall be explored subsequent.
Blockchain in accounting and auditing
Accounting and auditing may not be flashy headlines, however behind the scenes, blockchain is slowly altering how monetary knowledge is managed, verified and reported.
Higher knowledge safety and fraud prevention
With blockchain, as soon as a transaction is recorded, it might probably’t be altered with out consensus from the community. This built-in immutability drastically reduces the chance of tampering or fraud and strengthens the integrity of monetary information.
Extra transparency = higher audits
Auditors now not have to sew collectively fragmented data from a number of programs. Blockchain supplies a single, real-time, tamper-proof path of transactions, making audits sooner, extra correct and extra dependable.
Streamlined reconciliation and reporting
Blockchain simplifies day-to-day reporting, too. As an alternative of manually reconciling throughout totally different ledgers, approved events all have entry to a shared, routinely updating report.
Adoption challenges
In fact, it’s not all clean crusing.
- Lack of standardization: There’s nonetheless no common rulebook for blockchain accounting. Teams just like the AICPA and the Worldwide Accounting Requirements Board are issuing early steering, however with out world requirements, corporations should tread fastidiously.
- Integration woes: Most corporations nonetheless use legacy enterprise useful resource planning and accounting platforms that weren’t designed for blockchain. Integrating — or deciding when to overtake — poses critical technical and monetary challenges.
- Regulatory uncertainty: Laws round digital belongings and blockchain-based transactions are evolving quick. Companies should maintain their inner controls and reporting practices agile to remain compliant.
Do you know? The idea of triple-entry accounting, enabled by blockchain, provides a 3rd element to conventional double-entry programs.
Blockchain for CFOs and treasurers
In 2025, blockchain is a sensible instrument for chief monetary officers and treasurers seeking to sharpen monetary reporting, enhance operational effectivity, and strengthen danger controls.
Strategic functions
- Actual-time monetary reporting and evaluation: Blockchain’s tamper-proof, real-time knowledge streams give CFOs on the spot entry to monetary efficiency. No extra ready for reconciliations — finance groups can forecast and pivot with stay numbers at their fingertips.
- Sensible contracts for compliance and transactions: Sensible contracts automate routine processes like compliance checks and fee executions, decreasing human error and making certain agreements are enforced precisely as written.
- Tokenization for capital elevating and asset administration: Tokenizing belongings similar to actual property, tools or fairness opens new doorways for elevating capital and enhancing liquidity. Fractional possession fashions additionally make it simpler to entry a broader investor base.
Danger administration concerns
Whereas blockchain enhances safety general, it’s not invulnerable. Sturdy entry controls, common audits and energetic community monitoring are important to guard programs and belongings.
Organizations additionally want contingency plans in place, since blockchain networks can expertise outages or latency points; having off-chain fallback procedures ensures enterprise continuity throughout disruptions.
Lastly, CFOs and treasurers should keep actively engaged, working carefully with authorized groups and regulators to remain forward of compliance dangers and future-proof their operations.
Greatest practices for blockchain compliance
In case you’re working — or planning to function — in blockchain environments, these practices must be on the prime of your guidelines.
Set up sturdy inner controls
Managing digital belongings safely calls for stricter-than-ever inner controls. Which means:
- Segregation of duties
- Function-based entry programs
- Rigorous transaction validation.
With out these safeguards, the chance of fraud or mismanagement climbs shortly.
Have interaction with regulators early
Organizations that look forward to ultimate rulings typically discover themselves scrambling. Proactively constructing relationships with regulatory our bodies helps you keep knowledgeable and adapt to early steering.
For instance, a licensed Swiss crypto financial institution, SEBA, engaged early with the Swiss Monetary Market Supervisory Authority (FINMA) and have become one of many first banks to safe a banking and securities seller license in 2019. Its proactive compliance method allowed it to function each crypto and conventional belongings legally in Switzerland.
As well as, the Crypto Valley Affiliation (based mostly in Zug) collaborates frequently with Swiss regulators to form clear, forward-thinking crypto and blockchain insurance policies. They’ve been instrumental in making Switzerland one of many world’s most crypto-friendly jurisdictions.
Put money into ongoing compliance coaching
Blockchain regulation is in flux. Common coaching ensures your finance and compliance groups are able to adapt.
Everybody from junior auditors to senior compliance officers wants to remain fluent in blockchain fundamentals, regulatory updates and finest practices.
By constructing these habits into your group now, you’ll be higher outfitted in the long run.
Actionable steps for finance professionals
So, blockchain does have actual use circumstances in finance; it’s right here to remain and must be firmly in your radar.
Right here’s how totally different finance professionals can begin making good, manageable strikes at present:
For bankers
Concentrate on sensible wins first.
Search for areas the place blockchain can instantly enhance operations, like rushing up settlements, streamlining compliance processes or making mortgage servicing extra clear.
As an alternative of leaping right into a full blockchain overhaul, pilot small initiatives in focused areas like commerce finance or cross-border funds. This manner, you’ll be able to measure outcomes with minimal danger.
Additionally, partnering with fintechs focusing on blockchain infrastructure can speed up your studying curve and implementation, letting you faucet into blockchain advantages with out rebuilding inner programs from scratch.
For CPAs and auditors
Keep present with evolving requirements — particularly up to date AICPA steering on digital asset accounting and blockchain auditing.
Licensed Public Accountants (CPAs) and auditors additionally have to construct technical experience as a result of auditing blockchain information isn’t the identical as auditing conventional ledgers.
You’ll want to grasp:
- How blockchain buildings knowledge
- How verification works
- What finest practices apply to blockchain audit trails.
Furthermore, don’t be afraid to advocate for blockchain adoption at your agency — particularly when it might probably enhance transparency, decrease danger, and strengthen the credibility of monetary reporting.
For CFOs and treasurers
When evaluating blockchain initiatives, look by means of a monetary lens first. Think about:
- How blockchain impacts money circulation
- How tokenization may have an effect on your steadiness sheet
- How stablecoins or blockchain-based settlements might affect treasury operations.
If tokenization or stablecoin methods are even on the horizon for what you are promoting, they need to already be mirrored in your three- to five-year strategic plans.
Additionally, don’t go it alone: Have interaction with peer networks, {industry} teams and blockchain-focused finance occasions. Actual-world insights from different CFOs and treasurers may help you notice alternatives and keep away from widespread early-adoption pitfalls.
