The impact of using blockchain technology on the efficiency of internal control performance in Libyan banks to improve the quality of financial reports

Abstract

Blockchain technology is one of the most important technologies, as this technology is an information network that contains a group of devices and nodes. The blockchain is defined as a digital list of records in which transactions are recorded with a high degree of security and greater transparency, making them effectively auditable. The study aimed to find out the effect of using blockchain technology on the efficiency of internal control in Libyan banks. The study sought to test the hypotheses related to the extent of statistical significance regarding the use of blockchain technology in achieving the efficiency of internal control, as well as the extent of statistical significance regarding the use of blockchain technology and raising the quality of financial reports. The study concluded that Libyan commercial banks' senior management must allocate budgets to modernize their digital infrastructure, making it ready to accommodate and implement distributed ledger technologies (blockchain) and smart contracts. It also emphasized the need to build capacity and develop human resources through the design and implementation of specialized training programs and workshops for internal auditors, accountants, and department heads. These initiatives should enhance their professional competence and equip them with the necessary skills to operate within a blockchain-based audit and oversight environment. Furthermore, the study recommended proactive initiatives to issue regulations and legal frameworks that support the secure and reliable use of blockchain technology in the banking sector.