A new democratized economic system

Global economic circumstances are unfavorable for the majority of the world. With a recession looms on the horizon, governments, particularly emerging nations, will need to find new solutions to address a crucial facet of their economy: debt settlement.

Mark said that blockchain technology stands out as a feasible solution for financial organizations. Although crypto is seen as a dangerous investment, its underlying infrastructure, the blockchain, offers long-term benefits for the world.

He stated that new financial systems and models have been developed to assist countries in settling their obligations in a perilous circumstance such as the one that exists now. The CEO referenced the recent debt settlement between Zambia and China as an example.

The Bill and Melinda Gates Foundation official continued the conversation on how financial institutions innovate under pressure, moderated by Steve Sedgwick, by stating, “The world needs a decentralized, interoperable payment system.” This new system, which is digitally created, will increase global wealth, with a particular emphasis on developing countries.

Mark referenced the mechanism used to provide palliative income to residents during the COVID-19 epidemic as an example of how altering a nation’s financial system may make citizens’ lives easier. Therefore, there is a need for a national and worldwide interoperable payment system that provides access to global financial services for both large and small players.

Scalability issues with digital solutions

Mark, who favors the reform of the present financial system, disclosed that size is a key implementation difficulty. It is not as difficult to design these solutions as it is to scale them to billions of people worldwide owing to a lack of basic infrastructures.

Mark said that investments are made at the Bill and Melinda Gates Foundation to assist create and grow such financial solutions. The CEO also said that digital identification should be included into DLT-based solutions. This will provide people the protection they require while interacting with digital payment systems and other relevant services.

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