The Quantum Financial System | Decentralized Ledger Technology

bycoachgrant

852 followers

1 year ago

A New Financial Paradigm

The transition to digital currencies is inevitable and will bring many advantages to the global economy. Among the various types of digital assets, those that comply with the ISO20022 standard, such as XRP, XLM and XDC, will play a key role in the new financial system. These 'bridge' assets enable fast and secure transactions across borders, as well as instant settlement of remittances. Blockchain technology lies at the heart of these new developments.

Blockchain Technology

Blockchain technology is a system of storing and transferring data that is distributed across a network of computers, rather than centralized on a single server. This makes it more secure, transparent, and efficient than traditional methods of data management. Blockchain technology can be used for various applications, such as cryptocurrencies, smart contracts, supply chain management, digital identity, and more.

Atomic Settlements

Atomic settlement of remittances is a process that ensures the finality and irrevocability of cross-border payments. It involves the use of distributed ledger technology (DLT) to create a shared record of transactions among the participating entities, such as banks, payment service providers, and regulators.

Atomic settlement of remittances can reduce the costs, risks, and delays associated with traditional correspondent banking models, the out-dated Swift system, which rely on multiple intermediaries and reconciliation steps. Atomic settlement of remittances can also enhance the transparency, security, and efficiency of cross-border payments, as well as facilitate financial inclusion and innovation.

Under the current Swift system, it can often take two or three days to transfer remittances cross-border. The system is not entirely secure and, of course, the intermediaries charge significant fees for their roles in the system. The new system will provide on-demand liquidity, is unhackably secure, eliminates the "middlemen" and transactions will take place instantaneously.

Banking the "Unbanked"

Banking the unbanked is a term that refers to the provision of financial services to people who do not have access to formal banking institutions, such as banks, credit unions, or microfinance organizations. The unbanked population may face various barriers to accessing financial services, such as lack of identification, documentation, income, trust, or physical proximity to banking outlets.

Banking the unbanked can have significant benefits for individuals and society, such as increasing financial inclusion, empowerment, security, and economic growth. However, banking the unbanked also poses many challenges and risks, such as regulatory compliance, operational costs, fraud prevention, customer education, and financial literacy. Therefore, banking the unbanked requires innovative and sustainable solutions that leverage technology, partnerships, and social impact. In a word, we are moving toward a truly more egalitarian society in which all participate.

The Greatest Wealth Transfer in Human History

The greatest transfer of wealth in human history is unfolding as we speak, as the C-19 debacle has exposed the deep inequalities and vulnerabilities of the global economic system. Millions of people have lost their jobs, businesses, and livelihoods, while a few billionaires and corporations have amassed unprecedented profits and power.

This is not only unjust, but also unsustainable and dangerous for the future of humanity and the planet. The needed radical reforms that are required to create a more democratic, fair, inclusive and resilient society that works for everyone, not just the elite, is being implemented as we speak. Of course, this exciting, new development is not getting much air-time on mainstream media. The process that will lead to universal acceptance is, nevertheless, underway.

Unprecedented Opportunity

I began digging into the digital assets that are ISO20022 compliant months ago. I have been closely the developments as they unfold. In periods of rapidly rising inflation, the purchasing power of our hard-earned dollars erodes. During such periods, many turned to gold and silver as hedges. However, the digital assets discussed in this article, in my view, represent an unprecedented opportunity. Personally, my wife and I have added XLM and XDC to our portfolio.

This content is intended as educational only and should not be construed as financial advice. I would recommend that you do your own research. Everything is going be tokenized, not just currencies. This development will give those who have not had the opportunity to invest in real estate, precious metals, stocks, bonds and many other commodities will now have that chance. As this becomes reality, those who get in at this early stage will reap the most benefit.