Blockchain technology has transformed the way financial transaction takes place
Technology has made it possible to conduct business across geographic boundaries. Nevertheless, there are still geographical and economic borders that make it impossible for the financial market to have a broader reach globally.
For instance, some countries that have posted high GDP growth such as Turkmenistan and Ethiopia do not even have stock exchanges. This makes it difficult for investors and commerce players to have access to global capital. Those that are able to gain access are slapped with impossibly high intermediary fees.
Economic imbalance and exclusion are the biggest obstacles to entrepreneurs looking for investment opportunities. Blockchain technology, which is a global force, may provide the solution badly needed to address this problem. Trybe explores the ways blockchain can help bridge the economic gap between high-income economies and emerging ones.
Blockchain presents a decentralized means of doing business which is not only secure but also accessible. This technology could help eradicate economic imbalance and aid in starting a new era of economic inclusivity for developing nations.
If you consider exchanges such as the JSE (Johannesburg Stock Exchange) which is the largest in Africa and the New York Stock Exchange, you will better see the disparity.
JSE has approximately 375 listings to the over 3000 listed on the NYSE. The JSE is worth around $988 billion while the New York Stock Exchange pulls in $28 trillion as of the most recently recorded findings. It shows that access to opportunity is not on the same level.
Additionally, there are at least two billion people who cannot access financial institutions such as banks. Simply put, over two billion people in the world have no access to international investment platforms. This is in spite of demand from growing economies such as Ethiopia, Turkmenistan, and Nauru.
With the current financial models only favoring high-income economies, emerging markets are left with only the non-formal ways of investing such as real estate, farming, and jewelry.
Blockchain technology comes to the rescue in the following ways:
Blockchain can necessarily be the vehicle by which change and economic growth in developing countries will finally be realized by ensuring that emerging economies have access to international investment platforms. Also, it will open more channels for Blockchain access for entrepreneurs to blockchain stock market.