The Digital Economy
Read more about Digital Economy
What is digital economy?
Our global economy has traditionally relied on the exchange of physical assets such as US dollars, gold and property. These exchanges require immense amounts of paperwork and the involvement of many different parties to take place.
Another key part of the global economy, conducting financial transactions, currently requires both the person sending and the person receiving the funds to have a bank account. These transactions can often take days to occur, and are subject to high fees from banks or third-party remittance companies.
A truly global digital economy will completely transform the world as we know it. Physical assets will be replaced with digital assets, and the exchanges of these assets across the globe will be fully digitised. Digital records will replace paper-based records, and digital contracts will facilitate how trade and commerce takes place.
The transition from existing to digital economies will lead to rapid increases in efficiencies, lower costs, reductions in human error, higher levels of trust and greater levels of security.
BAXE has recognised that this transition is inevitable. This is why we are at the forefront of this truly transformative moment in human history, and we want you to be a part of this journey with us.
Don’t be left behind, download the free BAXE App today and be a part of this defining point in time.
The process of moving from the existing economy to a completely digital economy is already underway. But there are many crucial pieces of technology that need to be further developed to complete this process.
Blockchain has the power to positively impact every aspect of human life. From improving health services to allowing property transactions to occur within minutes, blockchain technology possesses limitless possibilities. Whilst the potential of blockchain is universally recognised, the best way to maximise this potential is still a work in progress.
Smart contracts are contracts with coded instructions that execute the terms and conditions that exist between the two parties. These contracts can be used by a café to purchase coffee beans, or by a parent to pay for their children’s school fees. This technology has the potential to automate the provision of goods and services, reduce paperwork, decrease costs and prevent disputes.
There are many different forms of assets that are a part of our economy such as resources, stocks, bonds, property, debts and money. Proof of ownership, and the recording of the exchanges of these assets, are all documented using paper-based methods. This leads to human errors, high levels of distrust and inefficiencies. The transition from relying on the use of physical assets to the use of digital assets will supercharge the global economy.
Regulation & Governance
No society can properly function without proper regulations and governance. Even free market countries have rules and laws that govern how their economies operate. The digital economy will be no different. It will require comprehensive and well thought out laws, as well as appropriate entities to enforce them for it to truly prosper. Both national and international organisations will need to come together to develop frameworks that will prevent crimes and stimulate growth within the global digital economy.