Authors : Vansh Gupta; Krish Aggarwal; Aarav Bansal

Volume/Issue : Volume 10 - 2025, Issue 1 - January

Google Scholar : https://tinyurl.com/3u92a7h7

Scribd : https://tinyurl.com/3c3r4fez

DOI : https://doi.org/ 10.5281/zenodo.14737706

Abstract : This research looks at how blockchain technology has affected the growth of the American and Chinese banking sectors. Financial markets could be radically altered by blockchain technology, a secure and decentralized digital ledger system, that increases efficiency, decreases transaction costs, and increases transparency. As blockchain adoption grows globally, understanding its implications for financial systems in different economic and institutional settings becomes crucial. This research uses econometric methods, including “Fully Modified Ordinary Least Squares (FM-OLS)” and “Toda-Yamamoto causality tests”, to analyze the relationship between blockchain adoption and financial development indicators such as financial market efficiency, liquidity, and accessibility. By comparing the US, with its well-established financial infrastructure, and China, a leader in blockchain research and development, the study offers valuable insights into the varying effects of blockchain in diverse institutional contexts. It is clear from the results that blockchain can improve financial systems and boost economic growth, but the effect on these two economies has been quite different. Insightful politicians, financial institutions, and tech developers can benefit from this study's practical consequences as it adds to the expanding corpus of literature on blockchain and financial development.

Keywords : Blockchain Technology, Financial Development, United States, China, Econometrics, Financial Market Efficiency, Digital Ledger, Financial Systems.

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