World Economic Forum: markets with a turnover of $867 trillion are open for blockchain
Sooner or later, all the assets we see today, such as stocks, commodities, and bonds, will go through tokenization. Many blockchain industry experts predict that the future of modern finance will be entirely focused on digital platforms.
The path to large-scale digitalization is indicated
The annual meeting of the World Economic Forum in Davos, Switzerland, was one of the important centers of the financial and regulatory establishment around the world.
The World Economic Forum’s report on blockchain predicts a future in which the boundaries between tokenized shares of private companies and ordinary public shares are blurred.
Currently, the blockchain market has a long way to go to ensure that the boundaries between tokenized assets and traditional assets disappear faster than ever. The report also indicates that there is partial friction between existing financial institutions and industry regulators seeking to change the resistance.
According to the World Economic Forum’s blockchain report, large-scale digitalization is inevitable. In addition, serious problems can also affect decision-making based on distributed ledger technologies. Some of the notable challenges associated with implementing blockchain-based solutions are related to uncertainty in business use cases, along with limited management involvement.
The highlight of the report, however, is an indication of the extent to which researchers have assessed the possibility of the size of traditional markets. The report provides a clear picture of the value of the various traditional markets that may be undergoing transformation. The total value of the markets open for transformation with the help of blockchain is $ 866.9 trillion, which is a positive indicator for the entire blockchain market.
The impact of blockchain, according to the World Economic Forum’s Blockchain 2021 report, will provide comprehensive benefits. The $866.9 trillion opportunity could be a huge boost for the blockchain industry, which is experiencing rapid growth. At the same time, the value advantage can significantly benefit from the existing market capitalization of almost $2.3 trillion.
On the other hand, the World Economic Forum also suggests that the blockchain industry will need some time before taking advantage of the newly opened opportunity. The report focuses on the most notable setback that could deter the industry from taking advantage of such an exceptional opportunity. In addition, market participants are also not ready for the large-scale implementation of the blockchain, which creates obstacles to its expansion.
The WEF also presented new perspectives on long-term changes in the capital markets. First, the introduction of distributed ledger technology can gain the support of market forces, along with the support of regulatory and technical developments, pushing participants towards digitalization in the capital markets.
Notable trends that will promote the use of DLT:
- Expanding the capabilities of central bank digital currencies (CBDCs) in different jurisdictions
- Commercial dynamics, such as customer service expectations and price pressures
- Institutional and regulatory issues in Blockchain technology
In conclusion, the WEF report demonstrates the existing potential of the blockchain market for 2021. It also demonstrates how financial institutions can maximize opportunities with blockchain-based applications. In addition, the report also opens up opportunities for creating a roadmap based on the examples of the first followers. Institutions around the world will see this report as a tool to test the potential of blockchain.
The findings of a recent World Economic Forum report clearly highlight the promising prospects for the blockchain market. According to the WEF blockchain forecast, the most sensible thing to do is to place the existing global financial infrastructure on the blockchain.