World Bank Resorts to FinTech & DLT
The World Bank once again emphasized on the importance of blockchain to provide financial solutions. Due to the current disruption and extreme public panic incurred by COVID19 pandemic, global economy is experiencing the arrival of an absolutely new technology: BLOCKCHAIN
stablecoins and central bank digital currencies (CBDC) are among the crypto and blockchain-related concepts that are mentioned by the World Bank with due capacity for financial inclusion.
The report issued by the World Bank puts emphasis on fintech-based key aspects. distributed ledger technology (DLT), stablecoins, CBDCs, payment tokenization systems, data analytics and cloud computing are key fintech concepts that are mentioned in the report as noteworthy approaches to combat financial recession.
The report indicates that DLT “may spur business model innovation in cross-border payments” and also mentions the significant role of the stablecoins and CBDCs in cross-border transactions. It has been claimed by the World Bank that “no global stablecoin initiative is currently operational.”
Previously in late 2017, the World Bank announced that implementation of DLT for financial inclusion requires interoperability with traditional payment services and effective oversight.