Blockchain Technology Can Help The IMF Continue Its Legacy.
The Covid-19 pandemic has devastated our world, affecting the lives of billions of people. Thousands of people have suffered, countless have died, and countless voices have not been heard. To minimize the suffering of future generations, we need to focus on what can be learned from this global disaster, and how to prepare for future catastrophes.
The paradox of our current situation indicates that we need to change the way we think about what change is despite spending considerable time and effort researching and developing effective ways of implementing change. The unexpected has certainly revealed some valuable lessons. Due to the lack of a structured, well-planned change management process, we have developed an alternative method for maintaining efficiency and effectiveness through continuous adaptation and evolution.
Our current situation has resulted from the contradictions we have experienced over the past year. In light of this paradigm shift, we must adopt a mindset of adaptation and evolution, which implies constant adaptation as our new reality. In addition to macroeconomic hurdles, corrupt political naysayers from third world countries, and vaccine distribution barriers, international organizations such as the IMF, World Bank, and UN are facing greater challenges.
The experience I have gained through using blockchains has led me to believe that technology has the potential to transform our economic ecosystem, allowing us to transfer liquidity and commodities, and to track every transaction. Concerning the distribution of funds, corruption in the name of corruption is one of the greatest challenges facing global organizations. In reflecting upon the history of IMF loans in my native country, each political party condemned the former government for corruption by borrowing funds from the IMF, and then went on to become the government and follow the path of corruption and political power. As far as I am concerned, trust can only be broken once. The naysayers are simply speculating, while blockchain technology and distributed ledger technologies may be able to demonstrate generational inequalities in wealth distribution.
It is evident that there is a dysfunctional technological infrastructure within the financial services industry that is fragmented across markets, securities, and functions supported. Operational expenses are high due to inefficiencies, increased risks, and excessive exception processing. Through the use of Blockchain technologies — currencies, securities, and derivatives can be issued, serviced, transacted, lent, and funded on an industrial scale. Blockchain technology allows stakeholders to track the entire lifecycle of a transaction within a bank’s operations, reducing the necessity for costly and time-consuming third-party verifications. By implementing real-time, scalable, and high-capacity blockchain technology for institutional and financial services, industry, governments, and service providers can improve risk mitigation, cost reduction, errors reduction, and data integrity. This can be realized through a transformative digital ecosystem.
In addition, most current workflow solutions for document management require multiple, independent processes. Due to the solutions provided, multiple, redundant copies of the data are required in various systems, requiring repeated reconciliations at each stage. By using distributed technology and blockchain protocols, organizations can ensure that assets are distributed and updated accurately, as well as share them with other companies across a network. If necessary, digital record enhancements, additions, or changes can be handled as transactional updates and cross-referenced off-ledger data. Every Node can be maintained individually as necessary, and the shared data can either be confidential or transparent, depending on the use case. A consistent protocol facilitates the easy sharing or transfer of digital data between networks or between legal entities. By using this protocol, transactions or data updates only need to be created, broadcast, and validated.
Imagining a blockchain protocol that would allow us to track loans, that are provided globally to eliminate poverty and investments to promote international trade as well as the stability of financial markets and economic growth. Take into account the possibility of improving economic surveillance, lending to poor nations, and developing capacity by utilizing blockchain technology and distributed ledger technology.
To conclude, we should consider the challenge of fiscal orthodoxy. Many financial institutions are limited by legacy systems and unable to create the agile environments and instant gratification demanded by today’s fast-paced world.
Global financial institutions like the IMF and World Bank must adopt a bold, technology-driven strategy in order to regain lost ground to fintech. By leveraging new data sets and innovations, financial institutions can improve their loan offerings and eradicate poverty.
You would be inaccurate if you believed that blockchain won’t play a role in future lending markets because it is still a nascent technology with legitimate concerns about scalability and regulation. We should reshape the global lending process. As quickly as we accepted the pandemic, let us adopt the new blockchain technology. Together, let’s challenge the narrative and build a better future.