Global Digital Finance: A Step in the Right Direction
Finances all over the world are getting disrupted the digital age. Checkout this guest blog by Aboi Gagan Singla
Technology can be a double-edged sword. In the history of mankind this statement has been vindicated many times. On one hand it has affected some of the greatest changes and improved the lives of millions, while on the other hand it has also accounted for mass devastation. In order to avoid the negative implications of science and technology, necessary precautionary measures are essential.
This is why there is a need to view blockchain technology with relative skepticism.
Pundits unanimously agree that it has tremendous potential to improve almost all the sectors, however, at the same time there is also a need to approach it with caution.
The incidences involving high profile fintech firms like Shapeshift and Ethereum have exposed the insecure facet of this technology. Risks such as robberies and hacks are common in the virtual and copiously uncontrolled world of bitcoins, but the magnitude of cases such as these are so severe that even the most hard-nosed devotee of virtual currencies would feel anxious.
The fact that blockchains make DLT resistant to attacks, but not completely immune is a factor which should be looked into carefully. This is where Global Digital Finance (GDF) could play a critical role in the near future and encourage more people to invest in crypto shares when compared to equity shares, which is a safer option at present.
Global Digital Finance and its Role in the World of Cryptocurrency
Global Digital Finance has the potential to play a crucial role in the sustenance of crypto industries. An increasing number of countries have already reported and raised concerns related to the latest investment avenues in the modern financial markets at the global level.
An all-encompassing code of conduct was, therefore, the need of the hour as it involves global assets. This is exactly why GDF has been launched.
The primary purpose of this body is to create an extensive code of conduct at the global level which can help prevent malpractices using the blockchain technology and in the process enhance the security of the market participants.
Functions of GDF
Stringent universal code of conduct will help induce a shared understanding of the risks, opportunities, and practices which has been induced by crypto currencies. The blockchain technology has the potential to solve some of the most pressing problems of the modern world.
As a result, it is imperative that necessary measures are taken to harness its positives and simultaneously reduce the risk factors associated with the rapidly fluctuating rates of the digital assets. However, this plan and code of conduct can only turn out to be a success if all the major countries unify to adopt it.
Relevance of the Upcoming G20 summit
At present, there is a stark difference in approach among many of the top countries in the world. This is why the G20 summit later this year could turn out to be a line in the sand. The European countries like France and Germany are aggressively trying to make this a major point of discussion in the meet.
The US and Europe are already reportedly working towards making the global code of conduct a reality. On the other hand, Asian giants like South Korea and China have been known to be stricter about cryptocurrencies. They have already banned ICOs and crypto exchanges.
Other Asian countries are slightly lenient as they are aiming to create a regulated and safe environment which is critical for the sustenance of Digital Assets.
The Global Digital Finance with its code of conduct aims to do just that. It intends to provide a guideline for proper handling of digital assets which not only includes bitcoins but also major players like Ethereum and other payment, asset and utility tokens.
OECD has recently put its support behind GDF, stating that the code of conduct and taxonomy initiative is the way forward.
About The Author: Gagan Singla is the CMO of AngelBroking, a leading stock broking and wealth management firm in India. He holds a B.Tech degree (Computer Science) from IIT Delhi and MBA from IIM, Lucknow. All in all, he has over 15 years of experience in analytics, consulting and marketing. He has been instrumental in delivering analytics-driven transformations in multiple industry sectors including banks, insurance, eCommerce, AMCs and public sector across numerous geographies including the US, UK, Europe, Malaysia, India & Canada. In the last couple of years, he has taken up leadership roles in digital marketing to drive business growth in the new digital age.
Image: Pictures of Money via Flickr