Blockchain Technology and its Potential Impact on Capital Market. “A new trend in Financial Market”
Dr. Shaista Anwar, Dr. Majdi Khaleeli, Dr. Suja Pradeep
In few years Blockchain technology is gaining more importance in financial market. The objective of this research paper is to examine the impact of Blockchain Technology on capital markets.To do as such, this paper recognizes potential application fields of the technology in capital market as well as to evaluate the strategies and challenges in application of blockchain technology in capital market. The research methodology is based on in depth literature review, which identifies the application of blockchain technology and their challenges in capital market. Capital market is based on long term Debt and equity- backed securities. The implication of Blockchain technology in Debt and equity market results in risk reduction, fraud reduction, and misinterpretation of fact reduction as well as increase the competiveness into the market with good relationship to the regulators. The use of this technology gives more benefits to the regulators as well as the investors into the market. Investors can feel secure in this highly volatile market. The whole capital market turnover will increase if the blockchain technology widely spread. However there are many major challenges have to overcome for blockchain technology to become widely accepted in capital markets. These are technological, regulatory, legal, cultural and governance. The first and the foremost objective of the blockchain technology in capital market to create a strong regulatory framework and to develop standards, which benefits the investors into the investment market.