The tech world is native to digital: but will it embrace the new currencies?

Digital currencies are coming out of anonymity. In some sectors, like ecommerce, they are becoming a part of the new normal for the foreseeable future. This is why we have decided to do a deep dive on how digital currencies are disrupting industries, and how adoption within them is fairing.

Since digital currencies are a technological product, and tech savvy entrepreneurs were always the first to acknowledge the transformative potential of blockchain technology (a certain pizza provider notwithstanding), we have decided to start this new series with a nod to the tech sector.

Tech is global, or is it?

We’d be forgiven to think of tech companies as limited to land borders. Google, Facebook, Amazon seem to be ubiquitous cultural figures nowadays, used and understood by everyone. Regardless of where our friends and family are, odds are they are using these companies’ tools.

However, from a legal standpoint, this isn’t the case. When examining adoption rates for digital currencies, one should always keep in mind that legal frameworks are still a key aspect. We have written about digital currencies in the US and Europe. These articles do a better job of explaining the situation, but the underlying reality is simple: even though some business sectors are extremely globalized, and tech is certainly an example of this, regulatory systems aren’t.

One of the major stories for digital currencies and the tech sector is, of course, Facebook-backed Libra, a massive undertaking that can shape the future for digital currencies and blockchain in general. A great success for Libra can pave the way for adoption, and an important failure can hamstring the whole industry. So why is Libra such a hard project to get off the ground? You guessed it. Regulatory frameworks.

What IS up with Libra?

Since Facebook announced the project, in June 2019, Libra has been one of the most eagerly awaited developments in digital currencies. It showed that the tech sector was starting to understand the potential of blockchain technology not just to serve quirky startups, but also the biggest businesses in the world. There have been many hindrances since.

So, where do we stand?

Well, the good news is Libra has brought on a true specialist in international finance regulations to steer the ship. The new CEO is Stuart Levey, HSBC’s Chief Legal Officer. Not just that, but one of the largest financial behemoths in the market has also backed the project. Temasek’s portfolio is worth $219 billion, so this is very heartening news.

Libra is still figuring out what it is, though. They have decided, as late as this April, to embrace multiple single-currency coins, a big departure from the original project, which indicates that there is still plenty about this that isn’t final.

The other big names of tech are also making moves

This doesn’t mean, sadly, these are necessarily impressive moves. It’s not like Amazon has started accepting Bitcoin (They should! With Utrust! Jeff Bezos, if you’re reading this, head here). But they did patent a blockchain-based product authenticator, which shows that the technology’s potential is being experimented with.

Google and Apple have also taken cautious approaches, and are actually quite harsh on decentralized applications that run on their systems. Google has provided support for Blockchain.com, and Apple has indeed developed the Cryptokit, but these aren’t particularly world-changing developments (regardless of media fanfare).

Which doesn’t mean that none of the big players are heavily invested in blockchain. Microsoft has definitely been a leader in these early stages of adoption, with the Azure Blockchain Service providing one of the largest and most successful use cases on the market right now. It allows users to develop on top of existing networks and software. This includes automatic ledger deployment, network construction and pre-built blockchain commands. Huge companies like Starbucks are already using it.

And, of course, IBM and Samsung have their own solutions in this market, competing directly.

It’s predictable that this will change very swiftly. States have been touting the idea of state-sponsored digital currencies. China’s will be a reality very soon. This will force businesses’ hands. It could happen sooner rather than later.

Smaller companies are leading the charge

Libra isn’t even off the ground, and it’s already facing competition. Celo is one of the several smaller companies that are making waves in the digital currency market, and its Alliance for Prosperity (of which we are a part), has an ambitious and creative project that could make the Celo Dollar a force for good in the blockchain space.

Tech companies are using digital currencies for many different reasons, and one of the most uplifting is crypto-philanthropy. Tech companies are using these resources to help people around the world, which is growing the ecosystem and making it richer. Not that the ecosystem is lacking in growth. There are hundreds of new companies popping up, and the bear market has ensured that a lot of weaker or dishonest projects have been culled.

Academia is shining a light on the future

Of course the tech sector isn’t strictly limited to businesses. Academics are a big part of advancing knowledge and building the future. It is known that a lot of the best tech universities in the world are teaching blockchain to their students, or are heavily invested in investigating and documenting progress in the field.

It would do us good to listen.

Industry and academia are pointing us toward the future, and we are part of this ecosystem. We have been invested in adoption since our founding, and we are walking the walk.

All signs are pointing up for digital currencies, and the tech sector is both an actor and a beneficiary of this.

We are a part of that, and we are committed. You should be too.

Now is the time for your business to empower itself and join the future. Adoption waits for no one, and this untapped market won’t remain that way for long.

Head here and join us now — Make sure you don’t miss this opportunity!