The Fusion Of The Financial Sector And Crypto Space – It’s Happening

Previous Glitzkoin reports in the Infopedia section, have clearly addressed the issue of the merger between conventional finance and  crypto currency. Glitzkoin CEO Navneet Goenka, has constantly pushed for cryptocurrency regulations that, would enable economies to get the benefits of digital currency – while keeping the negative side of the financial innovation away. 

We ran a post talking about the future of conventional banks. The talk was about the need for banks to change their attitude towards cryptocurrency. It was quite obvious at that time that, the existing financial setup was doing everything possible to prevent the crypto industry from getting formal acceptance. 

Let’s fast forward to today, there has been a total change in official opinions about digital currency. The pandemic highlighted the need to move cash quickly and economically, this to help governments disburse aid money during the severe health crisis. The weaknesses of the existing banking system, were glaring. While discussing those weaknesses is beyond the scope of this report, they were serious enough to change existing attitudes. 

The change in attitude towards cryptocurrency was speeded up during the pandemic. Esteemed organizations like the IMF (International Monetary Fund), now talk about harnessing the benefits of digital currency. The IMF is urging nations to formulate regulations that will weed out the negative aspects of cryptocurrency while, harnessing its benefits. The focus is not on eliminating paper money but on including, cryptocurrency in the financial sector. 

In the current scenario, not talking about CBDC (Central Bank Digital Currency) would be a serious omission. Governments across the globe are seriously debating the pros and cons of issuing, their own crypto currency. This is often referred to as the official crypto or the, official digital currency of the nation. CBDC would have its basics rooted in the concepts applicable to private sector crypto currencies.

Most of the issues related to CBDC are still evolving. China has made a fair amount of progress with its Digital Yuan plans but, much remains to be done. The US and the EU are working on their CBDC projects and Asian countries are not far behind. 

Crypto space in 2020 and beyond would be far more dynamic, the presence of private sector cryptos and government controlled CBDC, would open up interesting options and opportunities. All stakeholders involved should put heads together and develop, a win-win scenario. Neither the state nor the private sector, should attempt to ease or blockade the other. 

 

GLITZKOIN: A quick recap of the Glitzkoin project and the GTN crypto token.  The project was launched to improve the demand for natural diamonds and to enhance, the efficiency and productivity of the multibillion dollar industry. 

The DiaEx diamond trading platform was developed using Stellar blockchain resources. The GTN token was launched as part of the project and is designated, as the mode of payment on DiaEx. Promoted by second generation diamond veteran Navneet Goenka, Glitzkoin assigned a multifaceted role to the GTN token.  

The trading platform was completed in 2019 and was put through rigorous testing in early 2020. A team of diamond dealers subsequently did a pilot run on DiaEx with, actual transactions made on the platform.  This process was largely successful and revealed a few areas for improvement. The Glitzkoin tech team was handling the minor adjustment when, the pandemic and subsequent lockdowns slowed down the process. The management will reschedule the full launch of DiaEx once the health crisis eases. 

Talking about the multifaceted nature of the GTN token, the project is also focused on further increasing usage for the crypto – this aside from crypto exchange trade and the payment usage on the DiaEx platform. The concept is to have operators of various businesses, accept the GTN token as a mode of payment in their operations. Moving this idea forward Glitzkoin has confirmed a partnership with online ticketing giant Myticket.asia, wherein clients of the ticketing portal could use the GTN token as a mode of payment. Technical requirements for the integration of systems on both sides is at an advanced stage, nearing completion. Reviewing the challenges that the entertainment industry has been going through during the COVID pandemic, both managements have decided to set a launch schedule when the situation starts to normalize. The arrangement setup between Glitzkoin and Myticket.asia will form the blueprint, for similar deals to be negotiated with other business operators.  

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Related Resources: [Project Updates]