Evolution of Blockchain Technology in the Financial Sector: An Empirical Analysis

Abstract

This study investigated the impact of blockchain technology in the financial sector. 20 countries from the Sub SaharanAfrica for a time periodfrom 2011 to 2021 was used. The study employed component analysis to represent the financial development variable, and a Generalized Method of Moments (GMM) was used to evaluate the link between the dependent and independent variables, including blockchain technology and macroeconomic variables. The findings indicatedthat blockchain technology has positive and significant relationship with the financial development. This indicates that the existence of blockchain innovation promotes financial growth. The findings also specified that macroeconomic factors such as lagged financial development, GDP, GDP per capita, FDI, trade openness and Rule of Law have significant and positive relationship with financial development. The institutional variable, government effectiveness has an insignificant relationship.