- What things will lead to the mass adoption of blockchain technology transactions?
- Why is there even a need for a Central bank digital currency?
Central Bank Digital Currency (CBDC) is one of the most significant improvements in the finance world. The development of new technologies and the reign of the pandemic caused people to shift from physical to digital transactions over the last few years.
And due to these digital disruptions, the emergence of cryptocurrencies and blockchain technology has entered the financial sector. And the adoption of such currencies which run on blockchain technology will be done through gaming and payments made on social media.
The Need for CBDC Adoption
The advancement of technology is reaching its inflection point. Experts have predicted that there will come a time when there will be millions and billions of such transactions in near future. And the central banks believe that the adoption will be successful. When people will use blockchain without even realizing it in their day-to-day lives.
It is a technology that aids both consumers and providers with fast and effective transactions on the go. The UAE government even claims that if they adopted blockchain technology soon they will be able to save 77 million work hours annually.
And it will also save up to $2.99 billion in the transaction. The technology will also help them save the environment as they also expect to save 398 million printed documents annually. Apparently, this is the future of finance and it will be molded by blockchain technology.
How Will The Adoption Happen
According to the US banking giant Citigroup, the mass adoption of blockchain technology will be driven by Central bank digital currencies. And it will be done by tokenizing day-to-day consumer usage like financial services, gaming, and then later on real-world assets.
The government decided to enter digital currency to help in regulation and maintaining security over the transaction. And now they will become the torchbearers as many countries have already jumped into the CBDC.
There are more than 20 central banks across the world. That have already launched their own digital currencies in their country. This allows more than 2 billion people to interact and have access to digital currencies. And since it is done by the government the transactions are safer and more secure for other people to use.
Social Media Payments and Gaming As A Passage For Adoption
Apart from the tokenization of real-world assets, social media payments and gaming will play a vital role in increasing the adoption of digital currency. Social media is the pioneer to help the adoption as everyone in the modern world has a smartphone and a social media presence.
Moreover, gaming is an industry that consists of over 3 billion gamers around the world. Reports even suggest that even if the whole gaming community does not adopt it. Even a fraction of 3 billion gamers would mean a significant improvement for digital currency.
But the only problem here is that there are not many Web3 games that will enable blockchain transactions. However, the solution to this problem is easy. Increasing the flow of good quality Web3 games in the market.