Will Blockchain systems kill banking as we know it?
It is now clear the global economy is stuttering.
Stockmarkets are showing signs of a downturn and investors are nervous.
Central banks are also worried.
Earlier in the month, four countries – Thailand, New Zealand, India and the Philippines – cut their official rates, while the US cut its interest rate at the end of July. It is expected that more nations will soon start cutting their interest rates.
At home, the Reserve Bank of Australia (RBA) has indicated that all options are on the table now to get the Australian economy back on track.
This includes the drastic measures of negative interest rates, a move that aims to force individuals to spend more and banks to lend more.
However, as the European experience shows, it is a move not worth experimenting. Markets in Europe are more distorted than ever: Currencies are weak, unemployment is high and Europe’s largest economy, Germany, has just reported that it is near recession.
So, clearly, central banks are fast running out of options to attempt and prevent yet another global economic meltdown.
Emerging technologies the alternative?
The failure of central banks to keep economies stable is increasingly paving the way for an emerging alternative.
This alternative is known as a decentralised public ledger system.
A decentralised public ledger system is a topic of discussion that has been raging for quite some time.
The dream of a decentralised system is partly to cut down the value of deciding gatekeepers of the economy – central banks.
With central banks showing signs of fatigue in preventing yet another global financial downturn, this dream is fast becoming a reality.
Blockchain is the leading driver of a decentralised system.
To read more about blockchain systems, please click on the link below…
