This digital currencies trend is believed to be the future of the world by many top investors across the globe. As a start-up, you shouldn’t miss this paper.
1. Equality of living standards: financial inclusivity and anti-corruption
More than 2 billion people are unbanked and without access to financial services, which creates huge inequalities in living standards.
Blockchain technology has the potential to close the poverty gap by, in several ways, increasing financial inclusion, reducing corruption, and creating a formal system of property rights in countries with no traceability record details who owns the assets – thus, the impact on wealth worldwide.
Financial inclusion is the most obvious benefit of blockchain technology, why is that? Because the unbanked population can be paid with bitcoin, there is no longer a need to rely on centralized banks to grant them the right to open bank accounts or gain access to banking services.
The absence of a formal system of property rights leads to a decrease in the value of the property, as well as to owners being denied the ability to use their property as collateral for credit or as a certificate to benefit from public services. Blockchain is here to change that.
2. Decentralized access to value-creating assets
Assets that create value that is only available to those with a high financial capacity can be made available to everyone, as blockchain technology enables large-scale encryption of such assets. For example, to buy a property like a luxury hotel, you need to borrow a large amount of money from a financial institution and take the risk upfront.
For example, Blockchain is providing an opportunity for tokenization at every level, we are seeing major NBA players convert their sports contracts into digital tokens.
3. Universal self-sovereign identity (SSI)
Based on the development of current regulations, people increasingly need to access public services through authentication and digital identification systems.
‘Self-sovereign identity’ is an emerging concept related to how identity is managed in the digital world. Under the Self-Sovereign Identity approach, users can create and control their own identities without relying on any centralized authority.
Regulation (EU) N° 910/2014 on electronic identification and fiduciary services for electronic transactions in the internal market (eIDAS Regulation) provides a predictable regulatory environment to enable secure and seamless electronic interactions between businesses, citizens, and public authorities.
4. Government adoption of virtual currencies
Blockchain will assist governments in implementing virtual currencies.
Given that cryptocurrency adoption is on the rise, governments will need to find a way to create and deploy some form of virtual currency to match current digital trends and be part of economic growth. economic thanks to it.
This means that the national currency is digitized; we had some examples like China which created its digital currency and Venezuela with its digital currency (petromoneda) backed by the country’s oil and mineral reserves.
Price-stable tokens regulated by monetary policies and backed by collateral will begin to gain traction as they become more reliable as a medium of exchange. Governments that fail to create a successful cryptocurrency will turn to stablecoins as their virtual currency of choice.
5. The world economy via blockchain
With its power, blockchain provides a significant business value chain. In its current state, world trade is conducted through a chaotic, distributed set of business relationships between untrusted parties.
Blockchain can help prevent problems like counterfeiting or gray markets of medical equipment, drugs, fashion clothing, auto parts, food supply chains, and more. each year.
Therefore, it is expected that most of the world trade will be conducted based on blockchain technology. However, this will require blockchain technology to become more mature, improving its range of functions, flexibility, performance, and efficiency.
In short, blockchain will expand within the ecosystem to generate economic growth and improve conditions and standards based on trust, immutability, and transparency. Take note of these digital currency trends – the future is in your hand!
If you want to know more about digital currency trends – let SmartOSC experts help you!
Contact us if you have any queries about Blockchain development services.