Revolutionizing Foreign Exchange Market: A Critical Analysis of Blockchain's Opportunities and Challenges

Abstract

The fast use of blockchain technology, cryptocurrencies, and electronic trading has had a profound influence on the world's foreign exchange market, creating both difficulties and potential for market regulation and exploitation. Blockchain has the capability to completely transform the foreign exchange business by bringing improved transparency, efficiency, and security. Blockchain allows for the construction of transparent, tamper-proof transaction records since it uses distributed ledger technology. Lately, Blockchain technology and Forex trading have experienced tremendous growth in popularity in recent years, but it's important to remember that they also include hazards that investors need to be aware of. The goal of this study is to determine how blockchain technology might be applied to boost the Forex market, highlighting the advantages of decentralization, efficiency, security, and transparency. This study aims to explore the potential contribution of blockchain technology to the foreign exchange market. The research employs a literature review and analysis approach to investigate the relationship between blockchain technology and the foreign exchange market. The findings of the study indicate that blockchain technology has the potential to revolutionize the foreign exchange market. The paper concludes that the use of distributed ledger technology enables the creation of transparent and tamper-proof transaction records, addressing existing challenges of transparency and security in the Forex market.