I think a world where your money isn't bound by the borders of nations or converting your wealth isn't a necessity when you travel or move isn't a far-off utopia, because it's the reality being shaped by the advent of Web3, specifically blockchain technology.
In my view, one of the most compelling aspects of the web3 revolution is the ability to be your own bank.
A new financial paradigm, being your own bank means you have the sovereignty over your finances without the need for intermediaries like traditional banks.
And this paradigm enhances our own personal freedom and brings significant advantages in both digital realms and the physical world.
What I mean by that is you gain a level of financial sovereignty previously unattainable, your wealth is no longer subject to the whims of central authorities or the instability of traditional banking systems.
As long as you hold the keys to your own financial kingdom, so to speak, you have the power to transact, save, and invest as you see fit. That said, with great power comes great responsibility.
In the digital world, it opens up avenues for participation in global markets, through decentralized finance (DeFi) and new forms of digital ownership such as NFTs, where one can establish ownership of digital assets that represent real-world items or unique digital creations.
Property Rights
This can include art, music or virtual real estate, providing a new form of property rights that can potentially be recognized on both domains, the digital space and the real world.
Property rights for me, is one of the foundations of civilization, the bedrock upon which a thriving society can be built.
Every time I try to explain this relatively(or upcoming) practical reality to those with minimal exposure to the digital world, they struggle to grasp how digital assets can hold real-world value. I'm still not good yet in giving a short and precise explanation to help them grasp this at a fundamental level.
But the impact of this financial paradigm is equally profound in the real world, arguably more easily able to grasp and make sense of than the intricacies of digital asset ownership.
For one, now we have options to mitigate tangible and re-occuring issues like capital controls, currency devaluation, and the insidious costs associated with currency conversion.
I think one of the main causes of such can be tracked down into two things, lack of mobility and presence of intermediaries.
Essentially, we now have "wealth mobility", which can revolutionize our perception(more abundant) and interaction(less restrictive) with money in several ways:
- Financial Sovereignty: Control over your assets without reliance on any third party.
- Reduced Costs: No need for currency exchange or international transfer fees.
- Inclusion: Access to financial services for the unbanked or underbanked populations worldwide.
- Security: Enhanced security through blockchain's inherent features like immutability and encryption.
Sometimes, it blows my mind to think about the potential for positive impact that this technology can have on people and societies worldwide, just from a financial aspect.
Other times, it feels more like a dream that we bought into which never seems to materialize itself.
Thanks for reading!! Share your thoughts below on the comments.
