Over the years, the rise of blockchain and its penetration into the financial sector has created everything useful for humanity. This includes streamlining payment systems to enable easier and cheaper cross-border transactions, and the rise of popular and controversial cryptocurrencies.
Every industry around the world is experiencing the most radical, exciting and challenging innovations due to the digitalization and unstoppable technological advances of the modern world. These changes are also being experienced in the financial sector.
Blockchain is an unstoppable force that continues to disrupt the entire financial industry and the way commerce will be conducted in the future. Many investors are sacrificing their high-interest savings account funds to trade cryptocurrencies because of the huge profits they can make. With the endless possibilities of blockchain technology in finance, here’s what we’re looking forward to in 2024.
Tokenization of real-world assets
Boston Consulting Group predicts that within 10 years from now, by 2030, 10% of global GDP will be held in tokenized illiquid assets worth over USD 16 trillion in a best-case scenario. I think it will be. This value could reach USD 68 trillion.
Illiquid assets such as real estate, land, commodities, natural resources, art, and private equity pose challenges to investors such as limited affordability, indivisibility, exclusivity, and regulatory issues. cause Once tokenized, illiquid assets can be fractionally owned, making them more affordable to small investors and more liquid.
said Jim Pendergast, senior vice president at altLINE Sobanco. “This allows these rather ‘non-tradable’ assets, created through specially defined smart contracts using the assets, to be made available worldwide, without the ability to actually touch or see the assets. will be made available to all interested parties. Or a token trading platform. ”
As an example, four works by Andy Warhol are being traded in limited tokenized lots of 1,000 pieces each.
“We are thrilled to be partnering with Clario,” said Volodymyr Shchegel, vice president of engineering at Clario. “Buying, selling, and trading tokenized assets is similar to stock exchanges. However, the challenge in dealing with asset token trading globally is that this activity is highly regulated and can vary from jurisdiction to jurisdiction. “There is a need to fully understand the legal requirements.”
stable coin
Although cryptocurrencies are the most popular area for blockchain in the financial sector, the instability and volatility of most cryptocurrencies discourage many from participating fully (or at all) in the crypto world. I’m still hesitant. This is where stablecoins come into play.
Stablecoins are non-volatile cryptocurrencies, unlike most types of cryptocurrencies. cryptocurrency This is because they are often tied to assets such as currencies or goods, whose value is more “stable” than others.
Government agencies are reluctant and passive when it comes to regulating crypto assets. However, in 2024, the AICPA issued a reporting framework for stablecoins. This shows how stablecoins are gaining acceptance in the financial sector.
“Stablecoin reporting frameworks improve transparency and protection for token issuers, holders, regulators, and the financial industry as a whole,” said Jerry Han, CMO of PriceRebel. .
In addition to that, stablecoin issuers in the EU will greatly benefit from the recently passed comprehensive crypto regulation called MiCA or Crypto Asset Market Regulation. This regulation is the first major jurisdiction to introduce comprehensive rules regarding crypto assets. MiCA outlines stablecoins as electronic money tokens tied to fiat currencies, and stablecoins not tied to EU currencies will be completely banned from exceeding 1 million transactions per day.
The rise of dApps
We know how DeFi (decentralized finance) operates. With the help of blockchain and secure distributed ledgers, it is challenging traditional centralized banks and financial institutions by eliminating the need for intermediaries and brokers in lending and trading.
Andrew Pierce, CEO of LLC Attorney, said: “When it comes to digital assets, dApps, or decentralized applications, security and safety are most at stake, so from data stored on decentralized networks to advanced networks, enhanced security and privacy “Cryptographic technology.”
sustainable cryptocurrency
It is no secret that cryptocurrencies, especially Bitcoin, have caused irreparable damage to the environment. Although the business and financial sectors benefit from economic growth, blockchain United Nations scientists report that Bitcoin mining has a significant impact on increasing carbon emissions, water and land emissions.
Simply put, if Bitcoin were a country, it would rank 27th in the world in terms of energy consumption. Comparatively, it accounts for half of the UK’s total energy consumption. As digital assets negatively impact the environment, sustainable cryptocurrencies are growing in popularity and will continue to grow in 2024.
Puneet Gogia, Founder of Excel Champs, said: “So many individuals and businesses are finding joy in cryptocurrencies, especially in the financial sector, and we are delighted that cryptocurrencies are making such great strides. “But they don’t know that these are the same things that are destroying our planet.” He added: “We need to be sustainable while keeping up with technological advances.”
Examples of sustainable cryptocurrencies on the rise include:
- Green Bitcoin ($GBTC)
- Solana (SOL)
- iota
- cardano
- e-tuk tuk
- Nano
Looking forward: The future of blockchain in the financial industry
There is no stopping blockchain from changing the way not only the financial industry but entire industries work and operate. With the rise of tokenization of illiquid assets, stablecoins, dApps, and sustainable cryptocurrencies, blockchain is evolving and transforming a new era of finance focused on peer-to-peer transactions.
As the endless possibilities of DeFi in financial blockchain continue to expand, 2024 will be the year when blockchain becomes more widely accepted and regulated, paving the way for more secure and transparent trading and exchange of digital assets. It will be.
Over the years, the rise of blockchain and its penetration into the financial sector has created everything useful for humanity. This includes streamlining payment systems to enable easier and cheaper cross-border transactions, and the rise of popular and controversial cryptocurrencies.
Every industry around the world is experiencing the most radical, exciting and challenging innovations due to the digitalization and unstoppable technological advances of the modern world. These changes are also being experienced in the financial sector.
Blockchain is an unstoppable force that continues to disrupt the entire financial industry and the way commerce will be conducted in the future. Many investors are sacrificing their high-interest savings account funds to trade cryptocurrencies because of the huge profits they can make. With the endless possibilities of blockchain technology in finance, here’s what we’re looking forward to in 2024.
Tokenization of real-world assets
Boston Consulting Group predicts that within 10 years from now, by 2030, 10% of global GDP will be held in tokenized illiquid assets worth over USD 16 trillion in a best-case scenario. I think it will be. This value could reach US$68 trillion.
Illiquid assets such as real estate, land, commodities, natural resources, art, and private equity pose challenges to investors such as limited affordability, indivisibility, exclusivity, and regulatory issues. cause Once tokenized, illiquid assets can be fractionally owned, making them more affordable to small investors and more liquid.
said Jim Pendergast, senior vice president at altLINE Sobanco. “This allows these rather ‘non-tradable’ assets, created through specially defined smart contracts using the assets, to be sold around the world without the ability to actually touch or see the assets. will be made available to all interested parties. Or a token trading platform. ”
As an example, four works by Andy Warhol are being traded in limited tokenized lots of 1,000 pieces each.
“We are thrilled to be partnering with Clario,” said Volodymyr Shchegel, vice president of engineering at Clario. “Buying, selling, and trading tokenized assets is similar to stock exchanges. However, the challenge in dealing with asset token trading globally is that this activity is highly regulated and can vary from jurisdiction to jurisdiction. There is a need to fully understand the legal requirements.”
stable coin
Although cryptocurrencies are the most popular area for blockchain in the financial sector, the instability and volatility of most cryptocurrencies discourage many from participating fully (or at all) in the crypto world. I’m still hesitant. This is where stablecoins come into play.
Stablecoins are non-volatile cryptocurrencies, unlike most types of cryptocurrencies. cryptocurrency This is because they are often tied to assets such as currencies or goods, whose value is more “stable” than others.
Government agencies are reluctant and passive when it comes to regulating crypto assets. However, in 2024, the AICPA issued a reporting framework for stablecoins. This shows how stablecoins are gaining acceptance in the financial sector.
Jerry Han, CMO of PriceRebel, said, “The stablecoin reporting framework increases transparency and protection for token issuers, holders, regulators, and the financial industry as a whole.” .
In addition to that, stablecoin issuers in the EU will greatly benefit from the recently passed comprehensive crypto regulation called MiCA or Crypto Asset Market Regulation. This regulation is the first major jurisdiction to introduce comprehensive rules regarding crypto assets. MiCA outlines stablecoins as electronic money tokens tied to fiat currencies, and stablecoins not tied to EU currencies will be completely banned from exceeding 1 million transactions per day.
The rise of dApps
We know how DeFi (decentralized finance) operates. With the help of blockchain and secure distributed ledgers, it is challenging traditional centralized banks and financial institutions by eliminating the need for intermediaries and brokers in lending and trading.
Andrew Pierce, CEO of LLC Attorney, said: “When it comes to digital assets, dApps, or decentralized applications, security and safety are most at stake, so from data stored on decentralized networks to advanced networks, enhanced security and privacy Provides functionality. Cryptographic technology.”
sustainable cryptocurrency
It is no secret that cryptocurrencies, especially Bitcoin, have caused irreparable damage to the environment. Although the business and financial sectors benefit from economic growth, blockchain United Nations scientists report that Bitcoin mining has a significant impact on increasing carbon emissions, water and land emissions.
Simply put, if Bitcoin were a country, it would rank 27th in the world in terms of energy consumption. Comparatively, it accounts for half of the UK’s total energy consumption. As digital assets negatively impact the environment, sustainable cryptocurrencies are growing in popularity and will continue to grow in 2024.
Puneet Gogia, founder of Excel Champs, said: “So many individuals and businesses are finding joy in cryptocurrencies and how they have made such huge strides, especially in the financial sector. “They don’t know that these are the same things that are destroying our planet.” He added: “We need to be sustainable while keeping up with technological advances.”
Examples of sustainable cryptocurrencies on the rise include:
- Green Bitcoin ($GBTC)
- Solana (SOL)
- iota
- cardano
- e-tuk tuk
- Nano
Looking forward: The future of blockchain in the financial industry
There is no stopping blockchain from changing the way not only the financial industry but entire industries work and operate. With the rise of tokenization of illiquid assets, stablecoins, dApps, and sustainable cryptocurrencies, blockchain is evolving and transforming a new era of finance focused on peer-to-peer transactions.
As the endless possibilities of DeFi in financial blockchain continue to expand, 2024 will be the year when blockchain becomes more widely accepted and regulated, paving the way for more secure and transparent trading and exchange of digital assets. It will probably happen.
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