Blockchain can be as revolutionary in the emrging-market countries as mobile phones have been. As an expert at the investment bank Exotix Paul Domjan explains, blockchain has way more chances in the emerging markets within the nations which are considered developed.
In the report, delivered to the bank’s customers last week, Domjan, who specifically is the global leader of the research, analytics, and data at Exotix, likens the blockchain trend to the smartphone bonanza, which has been taking place within the past ten years.
According to his words, mobile phones and its ilks in the fullness of time made a much significant difference in developing nations than in developed ones.
“Today, frontier markets may be positioned to leapfrog developed economies once again, but this time the key technology is blockchain and cryptocurrencies,” said Domjan in the letter.
Ledger Tech Trend For Good
The analyst endorses such cryptos’ peculiarities, as registration of estate possessions, contract enforcement, as well as preserving and transferring funds.
Blockchain has as many supporters as skeptics. The first ones will say that it is the technology of the future with its recording and security possibilities. According to Santander InnoVentures 2015 report, it could save banks $20 billion. On the contrary, unbelievers will blame blockchain for merely patterning operations that are already functioning pretty well.
Domjan, in his turn, admits that registering novel assets on this ledger may take a lot of time (from hours to months) due to its distributed nature, whereas in the traditional electronic commerce one day is a maximum. Hence, according to his words, blockchain is not the best replacement for current processes.
Saving Emerging Markets From Stagnation
However, such a statement is only relevant for the developed world. But when it comes to the emerging-market economies, like African, Asian nations and former Soviet republics, which struggle because of amiss and precarious systems of estate possessions registration, blockchain may change everything.
As examples of blockchain adoption, which permits to register anything, the analyst named Estonia and Ukraine. The first one launched the public scrivener services system called BitNation. One of its functions is to admit marriages, registered in it. In Ukraine, on the other hand, developers are working on the blockchain-based election platform.
According to the analyst, it is near all the same for contracts. Individuals may establish orders based on rules thanks to Ethereum’s blockchain. For instance, one can issue a deed to estate once the payment is concluded. This is a novel scenario in developing countries, and it has all the chances to work out.
Not By Property Alone
Additionally, Domjan explains that in the emerging-markets economies blockchain can be helpful for remittance. Directly speaking, developing nations can make use of cyber money, based on this tech.
“We see this advantage across the developing world, from foreign investors in Brazil looking to move money to brokers in Zimbabwe looking for an alternative store of value,” Domjan said.
As he stressed out, cryptos can be profitable for countries, which have extremely unstable public currencies, which suffer from hyperinflation, maladministration, and high remittance fees and so on. Against such a background virtual money, even with all their flaws, might seem manna from heaven.