Former eminent governor of Reserve Bank of India, Dr. Raghuram Rajan, at Swell 2019, emphasized that technology such as blockchain and digital assets can play a significant role in boosting economic growth, raising financial inclusion, and transforming businesses in emerging economies all across the globe.
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The former governor, who is a renowned professor at the University of Chicago said, blockchain provides vast prospects to address the fluctuating attitudes about the global financial system in tokenization within central banking, cross –border payments, and much more.
Raghuram Rajan made a crucial statement as well and said,
We are at the beginning of another wave of globalization.
Technology has emerged as a significant tool for enhancing productivity and introducing the latest business models. Raghuram Rajan added,
We are due for stronger productivity. Tech innovation doesn’t always translate to actual productivity growth. For corporations to really learn how to use emerging technology, they need to reinvent the system. Once this is managed, we will see the pace of growth increase—not the moderate growth we see today.
Rajan believes that banking systems must secure the faith of underbanked and unbanked customers all over the globe. Collaborations with organizations that use decentralized technologies at an optimum level is one way to accomplish this as they enhance better transparency and reduce the cost of sending money to their relatives back home.
There is a sense of increased fear and anger prevailing at centralized banks. There has been a break down in globalization all over the world and concerns from business about sticking to rules set by another country. Decentralized solutions can offer an answer to all these problems. And, blockchain technology is one of the most effective decentralized solutions that have secured the faith of people, added Rajan.
Dr. Rajan played a key role in India’s early adoption of extensive mobile banking. The Unified Payments Interface or UPI is the brainchild of Raghuram Rajan that came into existence in the year 2016. UPI played a crucial role in transforming peer-to-peer payments.