Examining the Barriers to Adoption and Implementation of Blockchain-Based Financial Reporting Systems

Abstract

This study aims to examine the barriers to the adoption and implementation of blockchain-based financial reporting systems in financial organizations. This research was conducted using a qualitative approach with semi-structured interviews. A purposive sampling method was used, and 27 experts in finance, accounting, and information technology from organizations in Tehran participated in the study. Data collection continued until theoretical saturation was reached, and the data were analyzed using NVivo software and the qualitative content analysis method. The results indicated that adopting and implementing blockchain in financial reporting faces multiple organizational, technical, and regulatory barriers. At the organizational level, managerial and employee resistance to change and a lack of technical knowledge were the primary inhibitors. From a technical perspective, scalability limitations, incompatibility with legacy systems, and high implementation costs were identified as key challenges. At the regulatory level, a lack of legal clarity, ambiguity in legal responsibility, and concerns over data security and privacy emerged as significant obstacles. Despite these challenges, organizations recognize blockchain’s potential in enhancing transparency and efficiency in financial systems. To facilitate its adoption, it is recommended that clear legal frameworks be developed, investments in workforce training be increased, and IT infrastructures be improved to integrate blockchain with existing financial systems.