Publication Details
Abstract
Treasury digitalization has emerged as a key driver of modernization in public financial management, enabling automation, transparency, and efficiency. Despite its benefits, the process faces significant obstacles such as cyber threats, legal barriers, social consequences, and financial costs, which require careful consideration. Existing literature has extensively discussed the technological potential of digital platforms but has not sufficiently addressed the comprehensive risks and socio-economic implications that accompany treasury digitalization. This study seeks to systematize and analyze the main advantages and threats of treasury digitalization, focusing on balancing innovation with security while assessing the long-term sustainability of financial systems. Findings highlight that digital platforms, artificial intelligence, and blockchain enhance efficiency, accuracy, and financial transparency while simultaneously exposing systems to cybersecurity vulnerabilities, labor market disruptions, regulatory gaps, and high implementation costs. Case studies from the UK, Canada, and Estonia illustrate the effectiveness of digitalization in improving monitoring and reducing corruption, while also underscoring challenges of integration and trust. The study offers a synthesized framework that connects technological, legal, economic, and organizational dimensions of treasury digitalization, emphasizing the interplay between efficiency gains and emerging risks. Successful digitalization requires a holistic strategy that ensures robust cybersecurity, adaptive legal frameworks, workforce retraining, and sustainable financing. Balancing these factors is essential for securing public trust and achieving long-term stability in financial governance.