Analysis of blockchain technology adoption in the banking sector of the Republic of Moldova

Abstract

This thesis analyzes blockchain technology adoption potential in Moldova's banking sector, addressing the lack of systematic assessment of implementation readiness, barriers, and practical applications in the local context. Despite global evidence demonstrating blockchain's capacity to reduce operational costs by 15-25% and accelerate transactions from days to minutes, Moldova's banking sector faces specific challenges including high remittance costs (remittances represent 16% of GDP), duplicated KYC processes across 11 licensed banks, and the need for enhanced competitiveness. The research employs a mixed-methods approach combining questionnaire data from 12 banking professionals with insights from 8 semi-structured interviews with National Bank of Moldova representatives, commercial banks, and fintech consultants. Findings reveal moderate blockchain awareness with significant variation between institutions. While 67% of respondents recognize blockchain's relevance, only 18% consider their institutions prepared for implementation. Regulatory uncertainty emerges as the dominant barrier (83%), followed by technical complexity (58%), high costs (50%), and interoperability challenges (42%). Strong consensus identifies remittance optimization (4.8/5 impact score) and shared KYC utilities as priority use cases. The thesis comprises five chapters. Chapter 1 establishes blockchain's technological foundations, evolution from cryptocurrencies to enterprise solutions, global banking applications, and current implementation challenges. Chapter 2 analyzes Moldova's banking sector structure, asset quality, regulatory environment, technological readiness, and specific local challenges. Chapter 3 describes the mixed-methods research design, combining primary data collection through questionnaires and interviews with secondary document analysis and comparative case studies. Chapter 4 presents empirical findings on blockchain awareness, institutional readiness, perceived benefits and barriers, and use case prioritization through impact-feasibility analysis. Chapter 5 proposes conceptual frameworks for regulatory infrastructure, consortium blockchain architecture, remittance optimization models, shared KYC utility design, phased implementation strategies, and risk mitigation approaches. The thesis contributes a systematic evaluation framework adapted to small emerging markets, evidence-based prioritization of blockchain applications, and actionable conceptual models. The research demonstrates that Moldova's small market size creates favorable conditions for coordinated blockchain adoption through consortium models, though success requires regulatory clarity, capacity building, and realistic implementation timelines.