Optimising blockchain adoption in Malta's financial sector : drivers and inhibitors

Abstract

This study examined the adoption of blockchain in Malta’s financial sector, focusing on the relevant drivers and inhibitors. This research revealed how blockchain promises enhanced security, transparency, and innovation, which will revolutionise financial services to bring them in line with Malta’s evolving regulatory and technological landscape. While Malta is recognised for having one of the most "proactive" regulatory frameworks for innovation, the research also raises complex issues related to compliance, cultural acceptance, and technological integration. A qualitative methodology was adopted, combining a thorough literature analysis with structured interviews involving important stakeholders from government entities, banks, academia, and the private sector. The study investigates real-world blockchain use cases, revealing practical insights into both the drivers and inhibitors to adoption. The findings reflect various viewpoints on blockchain adoption in Malta's financial sector. Some stakeholders believe that blockchain can transform the sector, whereas others remain sceptical. This study suggests more measures for important stakeholders, including regulators, government agencies, educational institutions, blockchain-based firms, and traditional banks. These ideas attempt to eliminate existing challenges and promote greater acceptance of blockchain technology usage. The study indicates that Malta has the potential to enhance its position as a leading hub for blockchain innovation, provided that it tackles the highlighted regulatory, cultural, and technological issues. Malta can go from intention to implementation by capitalising on its proactive regulatory framework and encouraging cross-sector collaboration, establishing a solid model for blockchain adoption in small financial jurisdictions worldwide.