The Role of Blockchain-Based Smart Contracts in Enhancing Financial Transparency and Efficiency in the Emerging Market

Abayomi Muiz Tairu, Alabi Oluwatosin Junior, Temitope Emmanuel Akindele and Sanusi Akeem
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Abayomi Muiz Tairu: Concordia University Chicago
Alabi Oluwatosin Junior: University of Arkansas
Temitope Emmanuel Akindele: Concordia University Chicago
Sanusi Akeem: University of Ibadan

International Journal of Research and Innovation in Applied Science, 2025, vol. 10, issue 9, 509-524

Abstract: This study examines the role of blockchain-based smart contracts' influence on financial transparency and effectiveness in the economic activities of the emerging markets. In this study, the researchers utilised a mixed-method approach that includes a systematic literature review, comparative case studies from Africa, Southeast Asia, and Latin America, and expert interviews. The research findings evidence that the adoption of smart contracts can lower transaction costs, eliminate intermediary services, improve trust in financial systems, and serve as alternatives to the current financial systems. The results further demonstrate that smart contracts can improve financial inclusion through low-cost microfinance, insurance, and trade finance solutions, as well as enhance trust and transparency with immutable records and real-time auditing. Nevertheless, weaknesses in infrastructure, digital literacy, and regulatory uncertainty create difficulties for adoption. In addition, the study augments the existing prior research emphasising the impacts of financial technology innovation in emerging markets by offering findings that are beneficial to the market stakeholders including policymakers, financial services institutions, and technology innovators, by effectively positioning blockchain-based solutions implementation as better and viable option that can drive inclusive financial development in the emerging economies.

Date: 2025
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