Which of the following is an impact of blockchain on the finance function?

• A. Security and traceability of transactions - recording details with 3rd parties
• B. Smart Contracts can be created (self executing agreements - certain obligations are met they are automatically executed on a particular date and time)
• C. Bitcoin/cryptocurrencies are not covered by accounting standards and decisions need to be made on how to record them.
• D. Allow money to cross borders easily and seamlessly by avoiding traditional intermediaries such as banks

Answer: (B)

Smart contracts are where blockchain directly changes how the finance function operates. They are self‑executing agreements that automatically trigger actions when predefined conditions are met, on a specific date and time. This enables automatic payments, settlements, and compliance checks without manual intervention, lowering cycle times, reducing errors, and cutting the workload involved in reconciliation. The immutable, time-stamped on-chain records also provide a clear, auditable trail, strengthening governance and reporting.

While other statements touch on legitimate blockchain benefits, they don’t capture the primary transformation for finance teams. Security and traceability improve with on-chain records, but the standout change is automation through self‑executing contracts. The issue of how cryptocurrencies are treated in accounting is about standards and recognition, not the direct workflow impact. And while blockchain can enable faster cross-border payments, that relates more to payments infrastructure and external business processes than to internal finance functions.