Blockchain technology is closely associated with cryptoeconomics, as it enables the design of electronic currencies and assets, as well as the concept of peer-to-peer (end-to-end) financial transactions, often without the need for intermediation by the institutions.
The question is that this technology is increasingly attracting the financial market as a whole, developing innovative solutions and projects. With this, we are experiencing an important transformation and this technology is one of the main changes that promises to revolutionize the way we understand the financial system today, giving rise to a process called tokenizationIn addition, we will have the distribution of information, which becomes more transparent.
For João Manuel Campanelli Freitas, Director of New Business Development at Travelex, we are already witnessing several innovation opportunities with the use of blockchain and this goes far beyond electronic currencies or financial assets. The application of new concepts and functionalities made possible the emergence of Pix and Open Banking, for example.
“It is in this scenario of innumerable possibilities that the exchange market has also been benefiting from this tool, making its procedures, process optimization and security more efficient, faster and with lower costs. The technology also proves effective in improving traceability, transparency and tamperability, providing significant gains.says the director.
Decentralization is the main feature, guaranteeing more security for users, an extremely important factor for any market segment. The recorded data and the information that is shared within the network becomes immutable, which also helps in the fight against fraud. Given this aspect, financial organizations have been using this technology to ensure that digital transaction records of the most varied types are secure, reducing the risk of leaks and misappropriation of information.
“International transactions are a very clear example of how blockchain allows for greater innovation in the segment. The international payments market, until then, focused on the SWIFT system, whose main function is to allow the exchange of information between the banking system and financial transfers between institutions in different countries, however, this service has a structure limited to its ecosystem and with costs that are often high and, depending on the institution, the payment process can take several days for compensationJoao continues.
Among the most diverse initiatives, today there is a solution called ODL (On-Demand Liquidity) that allows, in the same way that we make a Pix on any day and time, to do the same, however, between different countries, using chain technology of blocks. In addition, if before companies needed to maintain pre-financed capital at the destination -which often made their operation difficult-, with the ODL it is no longer necessary. In other words, any business now has access to the service, with a low cost settlement, allowing you to better grow and scale your business.
The use of the payment process via ODL is recent and little by little it is occupying this important space in the payment tokenization process. The forecast is that in the next 3 years more than half of international payments will be circulating through similar processes.
He believes that the impact of blockchain technology on the financial market is extremely advantageous, whether it is for profit on all sides of the transactions, or for the security of the client, who now has even greater protection with his data and information, in the operations it carries out. Not to mention the countless innovative and personalized services that a financial institution can provide.
“We are living a new stage in the financial market, which over the centuries has been updated and, many times, has been the technological vanguard by enabling the use of technological tools, making them available to the final consumer with transparency, security and traceability.” it states.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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