The intersection of blockchain technology and global finance has become an increasingly common topic in IELTS Writing Task 2 examinations. Based on analysis of past papers and current trends, questions about digital financial innovations appear approximately every 3-4 months in actual tests. Let’s examine some real IELTS questions that have appeared in recent years.
Analysis of Topic and Question Types
The most frequently appearing question type relates to the advantages and disadvantages of blockchain technology in banking and finance. This reflects the growing interest in impact of blockchain on transaction processing across global markets.
Sample Question and Analysis
Some people believe that blockchain technology will completely transform the global financial system, while others think traditional banking will remain dominant. Discuss both views and give your opinion.
Question Analysis
- Topic: Blockchain technology’s impact on banking
- Task: Discussion + Opinion
- Key areas to cover: Both perspectives and personal stance
- Word count requirement: 250-300 words
Sample Essay 1 (Band 8.5)
The debate over whether blockchain technology will revolutionize global finance or remain secondary to conventional banking systems has gained significant attention. While both perspectives have merit, I believe blockchain will substantially transform financial services while coexisting with traditional banking infrastructure.
Proponents of blockchain’s transformative potential highlight several compelling advantages. Firstly, the technology enables near-instantaneous cross-border transactions with minimal fees, addressing a major pain point in how cryptocurrency trading platforms affect markets. Additionally, blockchain’s decentralized nature eliminates intermediaries, reducing costs and increasing efficiency. The technology also provides unprecedented transparency and security through its immutable ledger system.
However, supporters of traditional banking raise valid concerns. Banks have centuries of established trust, robust regulatory frameworks, and extensive physical infrastructure serving billions globally. They also offer essential services like loans and investment products that blockchain platforms currently cannot fully replicate. Moreover, traditional banks provide crucial stability and government backing that many consider indispensable for the financial system.
In my view, the future lies in the integration of both systems. Blockchain will revolutionize specific aspects of finance, particularly in areas like impact of digital currencies on international transactions, while traditional banks will adapt and incorporate this technology into their existing services. This hybrid approach would combine blockchain’s efficiency with banking’s stability and trusted infrastructure.
Analysis of Band 8.5 Essay
- Clear structure with well-developed arguments
- Sophisticated vocabulary and complex sentences
- Balanced discussion with clear personal opinion
- Excellent coherence and cohesion
- Relevant examples and specific details
Digital cryptocurrency trading and blockchain technology analysis dashboard
Sample Essay 2 (Band 6.5)
Many people today talk about how blockchain technology might change banking and finance in the future. Some think it will change everything, but others believe traditional banks will stay important. I will discuss both ideas and share my thoughts.
People who support blockchain say it has many benefits. It makes sending money between countries faster and cheaper. Also, it helps make financial transactions more secure because everything is recorded and cannot be changed. This shows how how cryptocurrency challenges traditional financial systems.
On the other hand, traditional banks have been around for a long time and people trust them. They offer many services like loans and savings accounts that people need. Banks also have many branches where customers can go for help. Moreover, governments support banks which makes them safer.
I think both blockchain and traditional banks will be important in the future. Blockchain will make some things better, like international payments, but banks will still be needed for many services. Maybe banks will start using blockchain technology themselves to improve their services.
Analysis of Band 6.5 Essay
- Basic but clear structure
- Simple vocabulary and grammar
- Limited range of complex sentences
- Basic coherence and cohesion
- General examples without specific details
Key Vocabulary
- Blockchain (n) /ˈblɒktʃeɪn/ – A digital ledger system
- Cryptocurrency (n) /ˌkrɪptəʊˈkʌrənsi/ – Digital currency
- Decentralized (adj) /diːˈsɛntrəlaɪzd/ – Distributed control
- Immutable (adj) /ɪˈmjuːtəbl/ – Unchangeable
- Infrastructure (n) /ˈɪnfrəstrʌktʃə/ – Basic systems and services
- Intermediary (n) /ˌɪntəˈmiːdiəri/ – Middle party
Conclusion
The impact of blockchain on global finance remains a crucial IELTS topic. Practice writing about related themes like impact of digital currencies on savings and financial technology innovation. Share your practice essays in the comments for feedback and improvement.
