Businesses are increasingly using blockchain to create digital assets for use in transactions and payments, and it’s about time they start to think about their customers too.
In a new report, the World Economic Forum is calling for governments to embrace blockchain technology as a new means of transferring assets and transferring value, and the World Bank is also pushing governments to implement its own version of the technology.
Businesses and the governments that they serve, says the WEEF’s report titled Blockchain: The Next Generation of Financial Services, are starting to see the benefits of this new technology.
“Blockchain technology is the next generation of financial services, and businesses, governments and the private sector alike are excited to harness the potential of blockchain technology,” says WEEI’s chief economist, Stephen Krasner.
The technology can enable businesses to streamline the process of creating new business assets, like stock, bonds and even real estate, and for governments, to digitize the process and streamline payments and settlement.
But it’s not all good news.
Business owners and governments should start thinking about how to leverage blockchain technology for their own purposes.
Blockchain technology is already being used to help governments and businesses reduce costs and improve the efficiency of their financial operations.
And there’s still a lot of room for improvement.
According to the World Development Indicators, the global average cost of government services has increased from $13 billion in 2013 to $26.7 billion in 2017.
And according to the Bank of America Merrill Lynch report, government spending on blockchain technology will reach $40 billion by 2020.
But, Krasne said, businesses need to think carefully about how they can use blockchain technology to benefit their own businesses.
“Businesses need to start to take advantage of blockchain technologies to their benefit,” he said.
“As governments begin to use blockchain to digitizing the financial system, they will have a real opportunity to benefit from the benefits that blockchain technology can bring to them.”
In this week’s WEEIF, the WIIF is highlighting blockchain technology’s potential to help businesses make money, improve their operational efficiency and improve their efficiency in the delivery of financial and other services.
This week, WEEFI also is recommending that governments embrace blockchain to simplify and speed up their process of settling payments, in order to reduce fraud and increase transparency.
And in a new development, the WSJ reports that the World Trade Organization is pushing for the U.S. to adopt blockchain as a way to streamlines its trade and other economic relations.
“If we can use the blockchain to accelerate trade and trade processes, we can bring billions of dollars into the global economy,” said World Trade Secretary-General Luis Videgaray.
“The fact is, it’s going to be a big challenge to build a sustainable economic system, to have a global economy, because we’re going to have to go through a lot more of the same steps and the same mistakes that we’ve had in the past.”
In an accompanying editorial, the New York Times writes that “Blockchains offer a way of building trust without having to trust a third party.”
But for the world’s businesses and governments, blockchain is just the beginning.
“When you think about it, blockchain isn’t just a new technology,” Krasnauskas said.
It’s also about how you use it.
“I think what’s going on now is, we’ve gone from a time where we didn’t trust one another, where we couldn’t communicate or coordinate in a safe way, to a time when we’re starting to trust each other,” he added.
“We’re looking at these new technologies as tools to be used as a tool, not a tool to be relied upon, not trusted, to be respected.
The WSJ article also discusses some of the challenges that blockchain has posed for banks. “
But you have to look beyond the tools themselves,” Kvasner added.
The WSJ article also discusses some of the challenges that blockchain has posed for banks.
For one, it has allowed a handful of big institutions, like UBS, JP Morgan Chase and Credit Suisse, to get their hands on the ledger.
But this doesn’t mean they’re fully embracing blockchain.
“There are a lot people who don’t like what it has done,” said Krasns.
“They’re not using it at all.”
Krasners pointed to the fact that some of these big banks have been accused of manipulating their records for political reasons.
“You can’t use a blockchain without doing politics,” he explained.
But there are some other risks to the technology, too.
For example, many banks don’t want to be in the business of making money for themselves.
And that means they don’t trust