Blockchain technology to discourage cash,

while stimulating Amazon conservation and tackling climate change.

Good and efficient infrastructure is the backbone of all economic and social growth. It improves access to basic services, stimulates community development and makes the central government more efficient. Suriname must therefore work more closely together at all levels to promote an inclusive and involved community with an open economy at its core, if we want to broadly promote financial inclusion, stimulate economic activity regionally and internationally, and discourage cash use with a focus on stimulating biodiversity and facilitating the approach to climate change to mitigate the risks.

In order to present a proposal to tackle this properly, the deployment and integration of a broadly supported and efficient technological infrastructure is necessary. Advanced technology that enables materials and goods, human factor, together with the domains of financial assets to come together to provide integral and added value to ecosystems and human capital to take them to the next dimension in terms of trading, stimulating connections and tapping into markets.

An efficient, transparent and disruptive way to achieve this is the use of blockchain-powered systems and/or platforms that enable the digitization, transfer and recording of financial assets, documents and other similar contracts for public domain inspection. For example, through the use of digital currencies, such as the so-called CBDCs (Central Bank Digital Currencies), financial inclusion can be promoted and a cashless society can be created.

Central Banks can, by mining and monetizing CBDCs (Central Bank Digital Currencies), as many Central Banks are already doing through pilot projects, greatly advance their goals and vision of a more financially inclusive and digital financial landscape, while actively stimulating economic activity and biodiversity in the region, and thus combating climate change.

I am convinced that the use of blockchain technology for, for example, remittance services and payment processing, offers a transformative solution to address, among other things, the challenges of the “unbanked and underbanked” populations, while also promoting economic growth through the use of digital transactions and to some extent facilitating the tackling of climate change.

Through blockchain-powered platforms, secure, transparent and cost-effective cross-border transactions are possible, allowing people who have traditionally been excluded from the formal banking system to seamlessly access financial services.

As part of the country’s commitment to achieving the Sustainable Development Goals focused on zero poverty, economic growth, industry, innovation and infrastructure, reduced inequality, climate action and sustainable communities, a blockchain-powered proposal focuses on the following key objectives:

Financial Inclusion: Blockchain-based Financial Technology platforms enable individuals from all socio-economic backgrounds to participate in the global economy, thereby reducing financial inequality and promoting economic growth.

Transparency: Blockchain technology provides an immutable and auditable record of all types of transactions, thereby improving transparency and accountability within the financial system.

Security: Blockchain platforms use state-of-the-art encryption and decentralized architecture, ensuring utmost security and protection of user data and funds.

Cost-Efficiency: By eliminating intermediaries and streamlining the remittance process, Blockchain-powered platforms offer cost-efficient solutions, with benefits passed on to both senders and receivers.

Seamless integration: Blockchain platforms can be seamlessly integrated with existing and traditional (eco)systems, enabling interoperability, reach and collaboration between traditional and established companies and/or systems and other emerging financial technologies within existing or emerging markets.

Discourage the use of cash: By providing efficient and secure digital remittance services, a blockchain-powered platform is able to reduce the reliance on cash transactions. This not only minimizes the risks of handling cash but also increases transparency and combats illicit financial activities.

Stimulate economic activity: Financial remittances based on blockchain technology are aimed at stimulating a vibrant and dynamic economy. By enabling faster cross-border transactions and promoting greater financial flow, more trade and investment opportunities can be expected.

Stimulate biodiversity: The conservation and stimulation of biodiversity, such as the preservation of the Amazon, can benefit from the use of blockchain-related transactions in several ways, such as transparent supply chains, tracking and recording of funding and donations for conservation, creation, tracking and trading of digitized carbon credits and offsets. In short, by using blockchain transactions, efforts to conserve biodiversity and its ecosystems can become more transparent, accountable and efficient.

Mitigating the risks of climate change: Achieving the global emission reduction targets set by international organizations for the transition to a sustainable, resilient and carbon-free future can be facilitated by blockchain transactions in various ways, such as digitizing climate-related assets to create peer-to-peer trading of renewable energy, which will promote clean energy sources and streamline and secure the fast and efficient distribution of especially financial resources during climate-related disasters.

It is therefore crucial that all stakeholders within and outside Suriname work together to realize the above initiatives through the adoption of innovative technology, and subsequently promote digital transactions at all levels. Necessary guidelines and the provision of funds or resources are of the utmost importance to tackle this thoroughly and efficiently. We can make it a collective and international effort to achieve the common goals of financial inclusion, economic growth and the reduction of cash use, while promoting biodiversity and mitigating climate change. Addressing and succeeding in this would be a major milestone for people and society and advancing these shared goals to stimulate digital transformation and economic prosperity and development will have a positive impact on the economy, society and nature in general.

Source: Sun News 14/08/23
Author: Anthony Roy Sporkslede | Founder & CEO Mercury Iconex

Updated on: 14/12/2024