What Will The Future Of Finance On The Blockchain Look Like?Feb 08, 2021
Blockchain and cryptocurrency have the power to massively disrupt the way we manage finance on an individual and society-wide level. But what will this look like in real terms?
The areas of impact are almost endless. Banks, currency swaps, stocks, saving, and lending could all look very different with blockchain technology. Activities could be significantly cheaper and more automated, with less reliance on decades-old technologies that can be frustratingly inefficient and expensive.
More integration with traditional finance
Contrary to some media narratives, blockchain doesn’t have to be threatening or challenging to traditional financial players. In fact, the new technology will likely be integrated into existing systems.
Banking services and apps have been investing in cryptocurrency for some time and will be keen to adopt the technology once it hits the mainstream, working it into their existing services.
A more level playing field
One of the most exciting aspects of blockchain is its ability to lower barriers to entry into financial markets and create a fairer playing field for people from all socioeconomic backgrounds.
Around a quarter of households in the U.S. are unbanked or underbanked. When you look at the world population as a whole, about 1.7 billion adults remain unbanked. This blocks them from all kinds of valuable financial activities, from buying shares to owning a simple savings account.
Crypto allows people to access financial products much more easily — often just by downloading an app. People will be able to start investing, buying partial shares, and save in a more effective way. Hardly any resources or work is required to get started.
Crypto and blockchain have the potential to change the way we all use financial services.
What started out a decade ago as an experimental fringe technology is now the subject of heavy investment by some of the biggest financial institutions in the world.
In the coming years, there will be some challenges and roadblocks standing in the way of widespread blockchain adoption. But as the advantages of the technology become clearer, it will be impossible for big financial institutions and tech companies to ignore it, and ordinary people everywhere will gain an easier route into the world of finance.
To hear more discussions on blockchain, crypto, decentralization, and the impact of all of these on our lives and the wider world, tune into The Unstoppable Podcast. It’s aimed at everyone — from beginners to experts — and everyone is welcome.