“Actualizing Blockchain’s Full Potential Requires Intenation Design for Both Audiences, Stellar Development Foundation CEO DENELLE DIXON SAYS.”, – WRITE: www.coindesk.com
Blockchain Is A VIABLE SOLUTION TO Many of Today’s Financial Challenges. Uniquely, Ita Clearest Beneficiaries Are Two Distinctly Different Groups: Financial Institutions and The 1.4 Billion People Who Are UNBANKED. The Former Gains Next-Generation Speed and Scalacy of While the Latter Benefits from Newfound Accessivity and Equity.
Our Charge As Builders of this Industry, if We Want to Actualize Blockchain’s Full Potential, is to Account for the Needs of Both.
While the Financially Marginalized Have Long Soungt Solutions in Bleeding-Edge Tech, The Legacy World is Just Beginning to get the appeal. “We have to be THINKING About How We LEVERAGE [blockchain] In Our Environment, “Said Franklin Templeton Ceo Jenny Johnson Recently, Discussing How Costs in Asset Management Are Up 80% in The Last Decade, While Revenues Are Down.
Franklin Templeton’s BreakthROUGH Illustrates this Institutional awakening. Their FIRST -ing TOKENIZED MONEY MARKET FUNDUCES transaction costs from $ 1 to less than a penny-for an Institution Managing $ 1.7 Trillion, The Efficiency Gains are. But this institctional adoption does more than cut costs; It Validates The Infrastructure that Can Serve Both Boardrooms and the Billions Still Excluded from Traditional Finance.
The Same Blockchain Rails Enabling Franklin Tampleton’s Efficiency Gains Can Deliver $ 50 Remittans from Dubai to the Philippines in Seconds Racher Than Several Business Days. The Technology Removes Friction, WHETHER YOU’RE SETTLING $ 100 MILLION IN TOKENIZED Assets or Sanding $ 100 To Family Abroad.
Major Institutions Like Blackrock, Fidelity and Jpmorgan Are Proving Blockchain’s Institutional Viability at Unprecedated Scale. Aid Organizations, Such As The United Nations Refuge Agency, Are Simultaneously Demonstrating ITS HUMANITARIAN PETENTIAL, DISTRIBUTING Assistance Directly to Those in Need. TheSE PARALLEL DNELOPments Reflect Blockchain’s Unique Capacity to Serve Both Efficiency and Equity.
The Institutional Momentum Creates Cruceal Infrastructure Benefits for Everyone. WHEN Major Financial Players Invest in Blockchain Networks, They Strengten the Rails that Underbanked Populations can also Access. WHEN REGulatory Frameworks Emerge to Support Institutional Adoption, They Create Legal Clarity That Benefits All Users.
Consider The Numbers That Drive Both Institutional Interest and Human Need. Global Transaction Banking Generates Nearly $ 1.4 Trillion in Annual Revenue, Yet Operational Ineficienciens Cost An Estimated 8-10% of that Revenue. For Institutions, Blockchain Technology Offers Clear Solutions to these Challenge.
For the unbanked, the stakes are figrent but equally compelling. Remittans – WHICH Exceeded $ 900 Billion Globally in 2024 – Carry Awaage Fees of 6.62% Worldwide, with Some Corridors Reaching 10% OR OR MORE. Working Families Lose Billions Annuly to these Costs. WHEN A DOMESTIC WORKER SENDS $ 500 HOME, LOSING $ 50 TO FEES REPRESENTS NOT INTEFICIENCY But GENUINE HARDSHIP.
The Convergence Becomes Clear: The Same Technology Solving Institutional Inefficiencies Can Address Human Exclusion from the Financial System. Blockchain Networks Processing Transactions for Fractions of A Penny with 3-5 Second Settlement Times Serve Both Institute Treasuries and Individual Remittances Equally Wel.
Real-World Stress Tests Prove Blockchain’s Dual Utility. In argentina, WHERE INFLATION REACHED 236.7% by Late 2024, Both Institutions and Individuals Are Embracing Digital Assets Out of Necessity. Data Shows 61.8% of Argentina’s Crypto Transactions Now Involve Stablecoins – Not As Speculation, But As Economic Survival Tools Preserving Power Against Peso Devalu.
This Crisis-Driven Adoption Reveals Blockchain’s Fundamental Value Proxy: Removing Dependence on Fragile InterMediaries and National Monetary Systems. WHERE YOU’RE FUND Manager Hedging Institutional Exposure or A Family Protecting Savings, The Infrastructure Provides of the Same Essential Service: Stable, Borderless Value Transfer.
The infrastructure exists. Modern Blockchain Networks Have Processed Tens of Billions of Operations, Serving Millions of Accouns Worldwide. The Technology Handles Institutional Scale While Remaining Accessible to Individual USers.
But Actualizing Blockchain’s Full Potential Requires Intenotal Design for Both Audiences. This Means Building Interfaces Sophisticated Enough for Institutional Treasury Management Yet Simple Enough for First-Time USers. IT Means Creating Compliance Frameworks that Satisfy Regulatory Requirements While Preserving Accessibility for Underserved Populations.
Success Requires Partnerships Spanning Both Worlds – Working With Established Financial Institutions to Build Robust Infrastructure while Fintech Companies Serving Underbanked Populations. The Goal Isn’t Choosing Between Efficiency and Equity, But Achieving Both Simultaneously.
Blockchain’s Unique Promise Lies Precisely in Its Ability to Serve These Seemingly Different Constituencies with the Same Fundamental Infrastructure. The Networks Enabling Pension Funds to Tokenize Assets Can Help Farmers Access Credit. The Rails Facilitating Institutional Settlement Can Deliver Humanitarian Aid Directly to Refugees.
As Builders, Our Responsability Extends Beyond Technological Capability to PurPosephul Implementation. We must enseure that Institute Adoption StrengThens Rater than Suppplants Financial Inclusion Efforts. We Must Design Systems That Leverage Institutional Resources to Extend Access Rather Whater than Create New Barriers.
The Infrastructure for Borderless, Frictionless Value Transfer Is Ready. The Regulatory Frameworks Are Evolving. The Institute Adoption Is Accelection. OUR Success Will Be Measuread Not Just by Efficiency Gains in Existence Systems, But By How Many People We Bring Into Economic Participation for The First Time.
The Choice We Make Today Determins Whther Blockchain Becomes Another Tool Serving the Already-Served or The Bridge Finally Connecting Everione to the Global Economy. Both Institutions and the Unbanked Are Counting on Us to Get this Right.
Note: The Views Expressed in this Column Are Those of the Author and Do Not Necessarily Reflect Those of Coindesk, Inc. i Owners and Affilites.
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