When the topic of blockchain comes up, most people think of Bitcoin and other cryptocurrencies. Certainly, today’s innovative technology primarily stands for digital currency which can be sent around the globe cross-border and in real time without any additional transfer costs. If politics recognizes the value of the blockchain and no longer resists the comprehensive introduction of innovation, the financial market could be revolutionized and equipped with a vision of the future even today. But this is precisely where banks and politicians see a problem, since the comprehensive application of the blockchain would make banks obsolete and automatically create a second financial market.
BVI sees competitive strength at risk without blockchain technology
Other countries are way ahead of Germany. Whereas here in Germany the conventional financial market is rigorously maintained and the blockchain banished to a niche segment, things are very different in our neighboring countries. Here, financial experts and political decision-makers have come to recognize the vision of the future and deal with the issue more openly. Based on various calculations, it is becoming clear how much money and valuable time could be saved by introducing blockchain technology in the area of investments. This trend alone should be an indicator for new approaches and the primary focus on Germany’s competitiveness. Only with approvals for different areas of application and taking blockchain out of the gray zone, as well as its connection to an alternative financial market, can it be ruled out that Germany will not be left out in the cold when it comes to technical developments. The potential of this innovative technology is diverse and goes well beyond its current use, which primarily relates to trading and transactions in cryptocurrencies. The enormous efficiency of the blockchain makes it appealing for various branches of industry and focuses attention above all on the increase in user confidence. For politicians, blockchain technology is regrettably primarily associated with the loss of their monopoly on state-owned banks. This loss could be fully offset if the technology were transferred from the gray zone to the first financial market.
Decentralization as a core segment of blockchain technology
The decentralized structure of blockchain offers enormous benefits for the individual customer. But it is precisely this advantage for the individual that fiscal policy sees as a major problem that will deprive banks of their power and make their position as an interface redundant. It is a fact that the performance of the blockchain can no longer be stopped or even reversed. If the conventional financial market is to be future-oriented and future-proof, politicians must rethink and accept new structures. However, despite numerous discussions about its advantages, competitiveness and future prospects, German authorities do not see any reason to relax the conditions and allow blockchain technology across the board. But the action cannot be put off for much longer, as trust in state-owned banks has long since ceased to exist and the move to alternative financial markets is growth-oriented. For now, blockchain is primarily used for trading cryptocurrencies, and even today, interest in this technology is virtually unstoppable. In the future, this technology could become more significant, from which both the population and the state itself could reap the benefits.