Cryptocurrency and blockchain technology are changing the way we think about money as well as access to financial services. They are making ways for more inclusive systems equipped with accessible of financial opportunities to everyone. Lisa Nestor, Research Director at Stanford’s Future of Digital Currency Initiative, has some fascinating insights into how the innovations are driving fintech forward.
The work of Lisa focuses on bridging gaps in financial inclusion. She started her journey with Stellar and the project showed her how open-source financial systems could transform lives. She now has her research centers on stablecoins and the digital dollar.
One standout aspect of cryptocurrency is its ability to bring financial tools to people who have been left out. Many regions even today lack access to banking services, making saving and transacting. Blockchain technology enables digital wallets and stablecoins that people can use. It is not about technology, but it is also about leveling the playing field.
Stablecoins and other such digital currencies if tied to stable assets like the US dollar means they don’t swing wildly in value like Bitcoin. People use them to protect savings and escape uncertainties of local currency.
Blockchain is also making waves in cross-border payments. Sending money across countries has traditionally been expensive as well as slow. Overseas payments using digital currencies are faster, cheaper and more accessible.
Lisa pointed out the way blockchain is opening up global markets through tokenization of real-world assets. Real estate, art and other such assets are typically difficult to sell quickly and now can be converted into digital tokens. The tokens are therefore traded easily and gives people access to markets.
Governments in many countries are also paying attention to the transformation. Central banks are exploring Central Bank Digital Currencies (CBDCs) and trying to figure out ways to introduce them without disrupting the existing financial systems. Progress is slow and cautious, but discussions are happening and this shows how far digital assets have come.