Fintech and Distributed Ledger Technology: Issues and Challenges Beyond Crypto Assets

By Cyn-Young Park and Bo Zhao


The advancement and spread of digital technologies is reshaping the global financial landscape. These technologies could dramatically increase financial efficiency and inclusion by expanding access to financial services and offering a broader range of financial products at lower cost. Despite the potential benefits, significant risks must also be managed. From blockchain development to the use of cryptocurrency, a range of policy and regulatory issues have emerged. This policy brief reviews key policy issues and challenges related to fintech development, in particular digital ledger technology applications. It proposes a functional and proportional approach to these issues that balances the evident challenges—such as in transparency, cybersecurity, and immutability—arising alongside the significant opportunities for innovation.