Blockchain, DeFi, tokens, Bitcoin, PoS, DApp are the words that are on everyone’s lips, thanks to the hype around cryptocurrency and related technologies.
Although the topic of blockchain is much discussed in many cryptocurrency news and articles, there is always a necessity to find out what experts think about it.
Jane Thomason, Founder at Supernova Data and expert in blockchain, DeFi, and frontier technology for social impact, has discussed the influence of blockchain on various verticals as well as the future of cryptocurrency.
How is blockchain transforming the payments sector nowadays?
Blockchain technology is challenging payments by addressing gaps including access, speed, transparency and transaction costs. Its perceived potential to disintermediate banks is considered game-changing for cross-border transactions.
COVID-19 is exposing the urgent need for more progress in low-cost, direct digital transfers. Blockchain has the potential to be a catalyst for digital financial services as governments need to look to the digitalization of payments and other services to minimize the devastating impact of the crisis on those most vulnerable, as well as to keep its economy afloat. Using blockchain technology to transform payment systems and reduce the cost of remittances will positively impact investment, economic growth, education, health, financial inclusion, and promote economic development and welfare as countries recover from the economic consequences of the pandemic. Many of these solutions are already being used across the developing world.
The positive potential value of stablecoins is being seen in emerging economies and for populations under threat. Think of people who are watching the value of their hard-earned savings erode, and citizens of countries like Venezuela and Lebanon watching their currencies nose-dive. Think of how COVID-19 has exposed the urgent need for low-cost, direct digital transfers.
Stablecoins carry the potential to facilitate secure and convenient transactions without volatility, at a lower cost than mobile money, held in a wide variety of non-bank wallets. This is badly needed as global remittances, a critical development finance flow, have fallen during the pandemic due to job losses for migrant workers. Remittances are expected to see the sharpest decline in recent history, falling by 19.7 percent to around US$445 billion in 2020, compared to US$554 billion in 2019.
Developing countries are already embracing crypto. The 10 top countries with users of cryptocurrency globally, include Kenya, Nigeria and South Africa, Venezuela, Colombia, and Vietnam. Chainanalysis also reports a trend of consumers in Latin America, Africa, and East Asia turning to crypto in order to preserve savings they may otherwise lose to economic turbulence.