A case for the slow and yet the transformation of the global financial system

Yesterday, August 31st, the Federal Reserve lowered the interest rate for the first time since 2008. This measure is usually undertaken in order to help boost the economy, as it stimulates the purchasing power. This leads to more spendings/ investments by individuals as well as companies that use this opportunity to grow their businesses.

Could this be a sign of a weakening economy? Currently, we are seeing the economic slowdown in many countries.

And if so — could this slowdown serve as a nurturing platform for transforming the traditional monetary system and expanding the power of the digital financial system that is not controlled by governments?

Amidst the relative quietness and recent influence of some of the central authorities, the digital/crypto industry has been tirelessly working on new frameworks and developments.

Among those are payment solutions such as Fold that offers payment-back rewards and Flexa — that lets shoppers spend digital money at 15 major US retailers. These developments also include institution-backed bitcoin futures platforms such as Bakkt, and lightning-centric bitcoin wallets with increased transaction speed such as Zap, Bluewallet, and Lightening Labs Wallet that works closely with a fintech startup Square — backed by Sequoia Capital, Citi Ventures, and Goldman Sachs, among others, and with $3.3bn in total assets.

Disruption usually comes semi noticed. These can be regarded as small and slow steps towards something we won’t be able to grasp just now. But the train got on the rails.

#globaleconomy
#globalfinance
#digitalfinancialsystem

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This article does not constitute investment guidance or legal opinion of the author or any entity associated with the author.