A detailed perspective on an innovative potential which can circulate beyond anything imaginable.
Historically, the idea of electric bulbs, automobiles and mobile phones took a while to catch on and even accepted. Not completely understood, great ideas are often a case to be dismissed before mass adoption.
Likewise, the birth of the Internet persisted in being much of a curiosity in the 1990s. By and by, the Internet changed the ways which business was conducted to become a universal business tool in modern times.
As the forefront of technology has evolved from the era of the Internet of Information to the Internet of Value, technological corporations heavily reliant and built on the Internet have kept watch for opportunities towards blockchain.
The latest newcomer, Facebook, has publicly disclosed Project Libra, a stable coin-based payment network where digital money is designed for use through its social network.
Also Read: 3 of your most important assets may soon have tokenised counterparts in the Blockchain
With blockchain reimagined as an end-to-end solution across industries, the growth of research and adoption in blockchain has sprawled over a rather short period.
The blockchain start-up ecosystem comprises of a diverse crowd, from payments to real estate to private markets, preparing future decades for cutting-edge service innovation.
Yet, across the globe, there remains the concern of diversity in advancements of blockchain and digital assets.
What contributes to the asymmetric blockchain advancements?
“Regulatory clarity is important,” Managing Director of the blockchain solutions firm Hashstacs Inc, Jay Ng, was quoted at a recent Digital Asset Working Group (DAWG) forum in Singapore.
The confidence in tokenised securities is mostly dependent on the underlying robust governance and assurance at national levels. As we transition from a world often accustomed to management, we find that regulatory framework planning in specific geographies advances more quickly than others.
As a means to drive the digital economy to participate in blockchain applications for financial services, the Monetary Authority of Singapore (MAS) offered US$225 million to develop Fintech projects.
Down south in Australia, advocacy groups such as Blockchain Association of Australia and Australian Digital Commerce Association champion next-stage DLT adoption.
In Mark Carney’s Mansion Speech of 2016, the governor of the Bank of England also emphasised the benefits of blockchain, aspiring them to be among the highest priorities.
Is regulation the only blocking point to industry application?
“No, it’s us (as humans) doing the adoption,” alluded Alex Medana, CEO of FinFabrik, on a panel of the DAWG APAC Readout in May 2019.
As technological advancement outpaces adoption, (studied in an animated film “Slope of the Curve” ) social factors can stall digital transformation.
One of the critical influences holding back blockchain implementation is the right way that traditionalists view it as nascent.
Jay agreed, who came from an investment and trading background, noting that the organisational culture is central to the various levels of willingness and adaptability on blockchain institutional adoption.
While regulatory support undoubtedly plays a role in encouraging DLT innovation further within certain areas, Facebook faces a wave of immense pressure for its recent cryptocurrency announcements.
With a troubled past of privacy scandals and data control concerns, unprecedented scrutiny from regulators weighs down on the tech giant. As all eyes of the media are focused on Zuckerberg, Facebook must navigate the crypto field carefully.
With the greater goal of financial inclusion, can we even out the benefits of blockchain across the globe?
It is still early days for blockchain.
“Of course financial inclusion also needs digital connectivity…making the dream of paperless, cashless, presence-less, and yet safe and secure, transactions possible for all,” addressed the Prime Minister in a keynote speech at the Singapore Fintech Festival on 14 November 2018.
Ironically, where corporations such as Facebook and Hashstacs make agile movements toward progress and technological frontiers, society at large inches a step closer in smoothening inequalities of technological merits across developed and emerging economies.
In short, the holy grail is slowly approaching.
Facebook has conquered Whatsapp, Instagram and now…on its way to Libra. In its extension towards blockchain, Facebook looks to facilitate banking the unbanked.
The tamper-proof record of transactions will reach across 1.7 billion people universally who lack access to the banking system. To further foster financial inclusion, emerging technologies such as the STACS
Blockchain reduce the market asymmetry in participation.
Through in-house developments, the advent of multi-jurisdictional exchanges drives regional participation for capital raisers and issuers. Fundamentally, the amassed cases of technological emergence could potentially draw the market closer toward an equilibrium state.
Collaboration towards greater progress
Collaboration fuels progress.
So, what can we do to sustain the practice of digital assets?
Creating a tech-focused future with social impact needs an agreement of industry standards, across complex business and technology decisions. According to Deloitte’s 2018 Global Blockchain Survey, 45 per cent responded positively to join a consortium.
As blockchain consortia continue to gain traction, market participants including exchanges, banks, depositories, asset managers and funds are welcome to be a part of the growing ecosystems – such as in the case of STACS’s.
A tech-focused future with social impact
The path ahead could be shaped as an inspiring one.
Also Read: Trust : an essential component in the success of investment oriented blockchain projects
With the capability to be adaptive and agile, digital ledgers enable the exchange of value within and across industries.
Be it at the level of transactional value, or a company’s valuation, we see blockchain’s potential to realise and circulate new amount beyond anything imaginable.
Read the latest market insights here at LinkedIn and Journal, while following Isabelle on LinkedIn and Twitter in her journey within the blockchain and fin-tech industry.
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Image Credit: Owen CL
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