The Impact of Blockchain Technology Adoption on the Security and Efficiency of Financial Transactions
(An Applied Study in the Saudi Financial Sector)
Abstract
Amidst Amid the rapid digital transformation in the Saudi financial sector, this study analyzes the impact of blockchain technology on enhancing the security and operational efficiency of financial transactions, while exploring its short-term economic returns. The study adopts both inductive and deductive methodologies, utilizing a scientifically validated questionnaire distributed to a sample of professionals and technology enthusiasts in Saudi financial institutions. The findings reveal that blockchain serves as a robust foundation for securing transactions through its immutable nature, real-time traceability, and encrypted distributed verification, significantly reducing fraud and cyber threats while fostering internal institutional trust. Additionally, blockchain accelerates transaction processes, minimizes reliance on intermediaries, lowers structural costs, and optimizes resource allocation. The study highlights blockchain’s potential to establish a new institutional framework that redefines the relationship between security, efficiency, and returns, provided its adoption follows a gradual, well-planned approach supported by a flexible regulatory structure and qualified operational capabilities. The study recommends creating a flexible experimental environment within financial institutions to test blockchain applications in a controlled, limited scope, temporarily easing certain regulatory requirements to allow practical experience and a deeper understanding of the technology’s capabilities and limitations. It also advocates for practical training programs targeting financial professionals to enable hands-on interaction with blockchain tools, fostering a deeper understanding beyond theoretical concepts through realistic simulation environments. Furthermore, the study suggests transforming stalled experimental technical initiatives into long-term strategic public-private partnerships, built on a clear institutional vision and translated into actionable implementation plans, ensuring sustainable innovation, scalability, and measurable economic impact across the financial sector.
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