The new debate about the center comes from technology, from digital transformation. ‘Blockchain’ constitutes the decentralized structure and the new revolution created by it is moving very fast. ‘Blockchain-based software, developments, and systems have started to work in many sectors and fields. We see these organizations as having different names, structures, and applications. However, the structure underneath all of them consists of the ‘Blockchain’ base.
It could be decentralized finance, decentralized commerce, or anything else. Notaries, land registry offices, elections, and customs are just a few of the areas that can be transformed with blockchain technology. Of course, there will be new technologies under blockchain technology that are currently invisible and unspoken, but that can touch many aspects of life, but especially with the introduction of the metaverse, the issue is actually moving towards ‘decentralized life’. I am not in favor of having standards or, more accurately, too many rules in this area. I’m in favor of opening up the system and this development as much as possible. It’s really hard to know how much we can control anyway. Today, it is inevitable that the whole order of the world will take a new direction, and that people will use the blessings of technology for better sharing and better management. As I said, the wave started to come towards us just at this time. It will pass over us and give a new shape to the entire financial system.
Along with the developments in the fintech world, it is necessary to talk about the future of the banking world and the “new role of money” There is a light approaching, it is coming towards us. Is it a train? Or is it a great light that will carry us to a new world? If you ask me, even if it is a train, we can still see the real light because it will change the order. On the path opened by Blockchain and Fintechs, the findings are very clear, decentralized finance is now everywhere in the world. And it is transforming the financial sector at a great pace. We are in a world where we send cash through chat apps and discuss the future position of cryptocurrencies. With every step, we are approaching a new future. Developing countries are likely to take part in this world with the world of cryptocurrencies and many fintech initiatives. Maybe it is one of the areas where we can compete for the most after gaming. However, in finance, both the banking system and the authorities need to pave the way for this development with an innovative approach. Yes, our financial system and banking system are very strong. But in Europe and the US, especially banks are catching up with technology by incorporating fintech. Although there are similar efforts in our country, the more open we are here, the more we will be ahead of the competition.
Decentralized finance, especially in the first wave, maybe a factor that will not challenge the traditional finance sector, but will expand its service area by acting together with the sector. As I said above, paving the way for fintech in this regard will also pave the way for the financial sector, especially in developing countries. The new structures will be able to exist on the loan and deposit side beyond traditional finance companies that provide cards, POS, investments, and commercial services. However, this does not mean the end of the traditional finance sector. Blockchain-based FinTechs in cooperation with traditional experiences can make the pie much bigger.
It is more accurate to look at the concept of decentralized finance not as a new structure that will replace traditional finance, but as two ecosystems that will complement each other and create added value. As a record-keeping technology that is impossible to change, blockchain can exist in every area where records are kept and verification is required. Notaries, land registry offices, elections, and customs are just a few of the areas that can be transformed with blockchain technology. Of course, there will be new technologies under blockchain technology that are currently invisible and unspoken, but that can touch many aspects of life. The metaverse is a separate world in itself. Blockchain can also dominate the metaverse technology. “Blockchain-based technologies do not only consist of cryptocurrencies. Non-Fungible Tokens (NFTs), which allow assets to be uniquely identified, are also one of the important outputs of blockchain technology.
Blockchain technologies are expected to increase the global gross national product by 1.76 trillion dollars by 2030. Cryptocurrencies, one of the first products of this technology, are the most widely used sector of the blockchain world. Another issue that is likely to see significant developments in the field of blockchain is CBDC, the digital currency studies of central banks. A study published by the Bank for International Settlements (BIS) reveals that 90 percent of central banks around the world intend to launch their own digital currency. Traditional finance is undoubtedly one of the most talked-about sectors to transform with blockchain technology. Traditional finance is based on keeping records. Blockchain makes this work cheaper and more efficient. New-generation finance further strengthens Istanbul’s goal of becoming a financial center. There may be an opportunity for developing countries to attract investments in this area. Instead of trying to compete with Frankfurt, London, and New York with traditional finance, developing countries can be the London of this new-generation financial ecosystem.