The COVID-19 lockdown in most countries has revealed the essence of digital financial services for households and SMEs. Financial inclusion for households via digital services has gained visibility over the past few months and small scale businesses have positively impacted the global economy. But it only takes a little more time for government parastatals to begin realizing that digital financial services and financial inclusion for households and small businesses are only reasonable with blockchain technology. Blockchain projects are ready with open arms to present existing solutions to the world.
The International Monetary Fund made and reported research on the effect of the pandemic on digital financial services. The research concluded that digital financial inclusion is linked to high GDP growth:
“During the COVID-19 lockdowns, digital financial services are enabling governments to provide quick and secure financial support to “hard-to-reach” people and businesses, as demonstrated in Namibia, Peru, Zambia, and Uganda. This will help mitigate the economic fallout and potentially strengthen the recovery.”
From a survey IMF conducted with participants from fintech firms, central banks, regulatory bodies, and banks, the results revealed that Fintech firms identified that there is a global “shortage” of coders or software developers and programmers. The Boston Federal Reserve has been ahead in terms of research in this aspect as they are already considering building a hypothetical digital currency suitable for Banks as Central Bank Digital Currency (CBDC) using Distributed Ledger Technology (DLT).
To IMF’s research Atul Khekade, Xinfin Blockchain Co-founder and Tradefinex replied in a tweet:
“Would love to demonstrate how @TradeFinex and @XinFin_Official can tokenize offline origination of MSME loans and provide liquidity through #stablecoins or #CBDC”
Tradefinex has been very active since its creation in this aspect to focus on Small and Medium-Sized Enterprise (SME) that has been ignored by Banks for financing. The use of Blockchain Technology to help in the ceaseless flow of funds in businesses is creative and innovative. Tradefinex connects SMEs and non-bank financiers via the tokenization of assets like electronic Bills of Laden, Bonds, invoices, etc.
Xinfin itself has been forward-thinking in the education of businesses and organizations on the advantages of Blockchain technology in connecting businesses seamlessly to financiers. Xinfin on the 27th of August, 2020 joined the World of Open Account (WOA) to showcase its solutions to fintech and financial institutions. Since the team at Xinfin are developers themselves, they can use the WOA platform to present their solutions to fintech which revealed that there is a shortage of developers and programmers according to the result of IMF’s research. Tradefinex is a simple and easy to use platform for businesses and organizations which need no developers to utilize.
Blockchain technology has gone far to disrupt the financial technology industry. But it needs exposure so its solutions can be used. Xinfin has taken the lead in securing the right exposure.
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