Blockchain seen supporting the fintech sector
More financial institutions are expected to leverage blockchain technology to improve service offerings for customers who have become more digitally savvy amid the transition to online platforms, according to a digital ledger platform.
CEO and co-founder of Tetrix Network, Emman Navalan, said in an interview with the Inquirer that the local financial industry had been following the trends that can make the customer experience more seamless.
“Many large financial institutions abroad have adopted international payments with blockchain technology, which saves time and money,” he said.
“Consumers can also use blockchain money transfers to complete electronic transfers with mobile devices, avoiding the cumbersome process of visiting a money transfer facility, standing in line and paying fees for a transaction,” he added, which is seen increasing financial technology ( fintech) sector.
Navalan compared the blockchain to “distributed copies of physical ledgers or notebooks that contain records of data or transactions that cannot be erased, tracking all changes across all copies at the same time.” He explained that this technology highlights trust among users, as any suspicious changes made to the ledger will be flagged, corrected and validated accordingly.
Aside from money transfers, Navalan cited cryptocurrency offerings as another financial service that could be enabled by blockchain technology.
“The crypto ecosystem has expanded significantly in recent years, and there is now a higher demand to construct high-capacity applications on low-cost blockchains, such as games, NFT (nonfungible tokens) marketplaces and media apps,” he said.
Gain traction
Digital assets traded as stocks – including cryptocurrency and NFTs – have gained traction in the country following the rise of the popular play-to-earn blockchain-based game Axie Infinity.
In fact, Navalan observed fintech players starting to offer cryptocurrency trading on their platform. Another financial institution also previously announced its plan to develop a platform that aims to turn artwork into NFT tiles that can also be traded.
Navalan said the country had stepped up efforts to offer more digital financial services, but more needed to be done.
“Blockchain technology can support and close the gap when used in parallel with existing efforts, but we need to start educating ourselves and consumers, as many people are afraid of any technology they don’t fully understand,” he added. INQ
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