Blockchain technology has potentially vast implications for countless aspects of the economy and society. Bitcoin and other cryptocurrencies are just one of many possible applications of this technology. Technological developments in this area could completely transform transaction systems as we know them today. After all, the existing financial infrastructure fails to move money and information at the same speed, leading to complexity and inefficiency. The failure points in many financial-transaction systems are broadly relevant across industries. The potential benefits of progress here are enormous as transaction fees represent an estimated 6% of global GDP.1
In this paper, we outline eight exciting impacts and opportunities from blockchain technology.
1 McKinsey, 2020
2 Company meetings, January 2021
3 A stablecoin is a new class of cryptocurrencies that attempts to offer price stability and are backed by a reserve asset.
4 A neobank is a tech company that provides banking services via mobile app or website.
Important Risks: Investing involves risk, including the possible loss of principal.
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