Greater access to information technology and wider use of mobile devices, have allowed a new generation of companies to flourish and deliver a wide array of financial services. These new, resourceful and visionary companies bring alternative but more effective sources of finance to the institutional investor, retailer and consumer.
During the World Blockchain Summit Singapore, Charles Hoskinson explained how our generation is busy shaping the new world financial system! He talked about privacy, decentralization, identity, finance and how the decisions we take could influence the next generation’s life.
Every new technology breakthrough allows entrepreneurs to either build new things or improve old things.
According to the Swiss regulatory body FINMA, tokens on the blockchain can have three functions:
What does the rise of blockchain mean for the traditional financial system?
Greater efficiency, speed and liquidity! The ability to trade equity, debt, real estate, creative art and digital assets all on the same platform! These are things that are only possible through blockchain!
These key factors are driving companies and financial institutions in increasing numbers to use blockchain technology instead of out-dated and traditional financing business models! All three types of tokens have a role to play in this new way of doing business but a security token is undoubtedly the most lucrative type of token. If cryptocurrencies are “programmable money” then security tokens are “programmable ownership.” This means that any asset with ownership can and will be tokenized!
The trend toward digitalization and technological innovation will reshape the global financial sector and the ways in which financial companies interact with their customers. The proliferation of mobile devices, new demographics, and the rise of blockchain technology and especially security tokens are the driving forces in this new development, fuelling the emergence of new solutions and products that better address customer needs by increasing accessibility, speed, transparency and liquidity.
As a result:
The Traditional Financing Business Model has the following characteristic features:
The finance industry has no other choice but to catch on this incredible new blockchain technology that stands to save them enormous amounts of money by streamlining their processes. Whether they like it or not, blockchain technology will force the finance industry to undertake a major shift from traditional computer systems to blockchain based payment gateways in the near future.
The Blockchain Financing Business Model has the following characteristic features:
In Conclusion
Blockchain technology brings a number of improvements to traditional financial products by removing the middleman from investment transactions. The decision for financial institutions not to implement blockchain technology may see them losing their core business and become obsolete. We have reached the crossroads where people’s ultimate desire not to be dominated by financial institutions is becoming a reality…
MOBU is instrumental in the process of allowing a whole new market of money to enter the blockchain environment. Greater efficiency, speed and liquidity — things that are only possible through blockchain. The problem MOBU solves is real, relevant and huge!
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