During the UAE, World Government Summit (WGS) Dialogues session titled ‘Decentralising Finance for an Inclusive Economy’, Jutta Steiner, CEO and founder of Parity Technologies, noted that the COVID-19 pandemic has affected multiple sectors. This has driven people to look for flexible alternatives to financial operations to enable them to continue their work in changed circumstances instead of relying on traditional banking institutions. This is evident in how cloud and blockchain technologies have enormous potential to fast-track the adoption of innovations in developing decentralised financial models and direct financing, and empower individuals and entrepreneurs to build more sustainable and stronger future digital economies.
Steiner said that the concept of decentralised financing has developed based on cryptocurrency models and blockchain technologies, which allow people and investors to communicate directly when transferring funds and assets in an open online financial system that boosts credibility and transparency among users. The assets of companies operating in the field of digital currency have reached US$40 billion.
Steiner explained that the digital financial system is being developed under a long-term vision, providing new mechanisms, tools, and solutions that facilitate access to loans and direct financing via smartphones and through advanced digital applications managed by individuals, which drives technological excellence and contributes to preparing for various global challenges.
She added: “The world is witnessing a rapid adoption of decentralized financial systems, and we hope that governments will play a vital role by organizing this shift towards innovative models that are successful alternatives to giant financial institutions in order to enhance the efficiency and reliability of the financial system, and improve access to the financial infrastructure.”
She pointed out that the digital currency space requires updating current systems and amending financial legislation to suit future developments and strengthen the security of these platforms. In addition, innovative institutions should be able to deliver a unique customer experience within common digital financial markets that offer financing, facilitate transactions, provide key information, and enable societies and entrepreneurs to invest and engage positively with governments to develop an inclusive economy.