As this happens, there is, observably, one fundamental aspect that all blockchain products aim to achieve: merging technology and money management using a peer-to-peer approach. In other words, using the tech to benefit all parties involved, thus creating a more stable and balanced economy while opening up a previously enclosed and almost “insiders-only” industry.
Admittedly, blockchain technology is causing a major reorganisation of the traditional financial structures. With just a little knowledge and skills in computing, it has become possible to trade on these Internet-based products in real time from anywhere in the world. Some deeper understanding and technical know-how might be necessary (for procedures such as mining), but blockchain has brought to the world possibilities hitherto unknown and unimagined by mankind.
Think of a person in the rice fields of India with an Internet-enabled smartphone being able to invest in a blockchain product. That is a whole paradigm shift, yet, in reality, it is happening.
One major appeal of cryptocurrency is that it does not depend on one authority like say the Federal Reserve or the Central Bank of “a country for policy formulation and/or regulation. Its rates are completely market dependent, assuring the stability of each cryptocurrency. Its performance is primarily in the hands of adopters/traders rather than a group of boardroom policymakers. The result? More economic stability.
That blockchain will influence the future of the finance industry is indisputable. In realisation of this, governments and organisations - large and small – are joining, adopting and developing cryptocurrencies thus influencing the direction of various economies.
Estonia, a nation known for its ease in tech adoption is at an advanced stage of developing Estcoin, a cryptocurrency token aimed at enhancing its e-residency platform. The platform is used to register and regulate businesses in this small European nation. But how will this affect the nation’s economy given that the official currency is the euro?
Kaspar Korjus, managing director of the e-residency platform offered a lengthy insight saying that instead of being critical of cryptocurrencies, governments should consider the tech’s impact and try to have them used as currencies because “they provide a more efficient means for exchanging value globally".
This approach affirms the fact that it’s just a matter of time before cryptocurrencies influence the conventional economy.
Elsewhere, Dubai is aiming at having all government services delivered through blockchain technology by the year 2020. Where does that leave the dirham, the emirate’s official currency? Well, only time will tell how and at what point this two sync. This notwithstanding, it alludes to the fact that economic shifts will be experienced through blockchain tech.
