Consistency and adherence to best practices depend on the work of international standard-setting organizations.
One of the most intriguing technological advancements of our day, blockchain is revolutionizing a wide range of goods and services.
The blockchain market could be valued $1.4 trillion by 2030 and increase the world’s gross domestic product by $1.76 trillion.
The most popular blockchain application is now owned by 300 million people, thanks to cryptocurrencies’ exceptional capacity to solve specific problems. But according to the World Economic Forum, regulation will be crucial in the industry’s future because adoption will be “directly connected with its amount and quality.”
1.7 billion individuals lack bank accounts due to global inequalities, particularly women, people of color, and members of disadvantaged communities. Traditional obstacles like exorbitant fees and close proximity to physical institutions are eliminated by blockchain.
Remittances, which total $589 billion, are a significant contributor to economic growth in underdeveloped nations. The UN’s sustainable development goal of 3% is within reach thanks in large part to the enormous potential that cryptocurrencies hold to reduce expenses from the current worldwide average of 7%. Blockchain-based payments conduct international transactions in minutes as opposed to days as in traditional finance, making them faster and more efficient.
Around the world, small and medium-sized businesses account for 50% of all jobs and 90% of all businesses. The $8.9 trillion funding gap for SMEs can be filled by decentralized financial solutions.
Blockchain has increased the US GDP by $407 billion, Germany’s by $95 billion, the UK’s by $72 billion, and Japan’s by $72 billion. Crypto has shown to stimulate economic growth in emerging nations in tandem with financial literacy. Web 3 startups have attracted top talent and received $89 billion in venture capital funding globally. The significance of blockchain extends far beyond the financial sector.
Regulatory certainty fosters innovation by providing a secure environment that increases consumer confidence, market order, clarity, and effect. The WEF has urged for customized frameworks for cryptocurrencies that take into account macroeconomic effect studies and address concerns like financial stability and crime prevention.
Numerous countries have vacillated between adopting new or outdated frameworks, regulators, or perhaps both. To minimize regulatory arbitrage, the International Monetary Fund believes that the optimum regulatory response should be comprehensive, consistent, and coordinated.
The promotion of consistency and adherence to best practices is greatly aided by international standard-setting organizations. Recent recommendations from the Financial Stability Board, the International Organization of Securities Commissions’ roadmap for crypto-assets, and the Basel Committee’s framework for bank crypto exposures are all positive steps.
The proposals of the FSB emphasize the significance of both domestic and international cooperation. The IMF also emphasizes taxonomies as a useful tool for illustrating how new terminology fits into an existing ecosystem. Education is cited by the Organization for Economic Co-operation and Development as a crucial user protection strategy.Share & like