Financial democratization and the future world

In today's world, in the financial field, developed countries are already exploring the application and extension of financial technology. However, people in many undeveloped countries cannot even do such a seemingly simple thing as remittance. In progressive countries, many people often have a negative view of finance, believing that finance is the worst evil. But looking back at the history of human development, finance has always played a very important role in society, promoting communication and improving operational efficiency. It is one of the great inventions created by mankind.

In the financial sense, trust and credit are very important concepts. Taking lending as an example, for a mortgage loan through collateral, for the lender, the residual value of the collateral is more trusted, so the borrower is usually loaned an amount that is lower than the residual value of the collateral. This is a show of trust. Compared with collateral loans, credit loans are a kind of amount calculated by the lender based on the credit rating as a reference benchmark, and lending to the borrower based on the benchmark. This is a performance of credit. What matters for trust is the sense of security that the object of trust provides, as governments do for their people. And this trust also extends to the currency issued by the government, which is used by the local people for circulation. Banks, brokerages, insurance and other financial institutions provide services while promoting circulation. At this stage, the concept of credit is extended. For example, through rating agencies, banks can evaluate the credit rating of each person and decide how much loan service can be given to the individual with this credit rating. Such services can even be extended to so-called legal entities. This is a form of debt, including person-to-person, legal person-to-legal person, and even country-to-country. The application and circulation of debt has occupied an indispensable position in modern society. And it all stems from the concept of credit.

For example, a closer concept currently emphasized by digital assets

such as Bitcoin is trust. On the contrary, we believe that its concept of extending from trust to credit will be a very important link in the next development of digital assets and even financial technology. Many Defis that have been very popular in the cryptocurrency field in recent years are carried out through borrowing and lending. However, the current approach favors the form of collateralized loans. Because in the world of cryptocurrency, all data and values can be queried through the blockchain network, which really reduces the link in the past collateral escrow appraisal, and can immediately know the value held by the borrower to evaluate the value of the loan. How much is the value of the asset with the other party. For users who originally hold cryptocurrencies, this is a convenient, simple and secure service, but for users who do not own cryptocurrencies, this is a barrier to entry. Just like the banking industry is often said to be a blood-sucking industry, because it is easy for rich people to borrow money, but poor people can't borrow money at all (meaning that people who really need it can't get services).

When someone needs it, it is not very fair and beneficial to use a service that must have a certain threshold. One part of financial democratization is fairness.

In the process of democratization, equality and equity are very important things. Equality means treating everyone equally, and equity is the most suitable way for everyone. In the process of financial democratization, it is especially important to bridge the existing high threshold and provide suitable financial services to more people in need. In developed countries, ordinary people can use various tools (mobile phones, Internet, cash, loans, banking services, etc.) to conduct investment, financial management, business, consumption, etc., to achieve the effect of increasing income or improving convenience. However, in less developed places, basic facilities such as electricity and devices may not be widely available. People living there may need some simple and practical financial services more than others, but they have no way to obtain them. Financial tools and financial systems can bring many benefits to human business and life, and promote social development, and these benefits should not only be conceivable by people in developed countries. The same service is likely to benefit more people in smog-developed countries. Therefore, in the process of financial democratization, in addition to some cases in advanced countries (including the story of gamestop, robinhoood and other small shrimps confronting big whales), it is very necessary to face up to the provision of more extensive and effective financial services so that more people can benefit from it. topic. The bank for the poor promoted by the Nobel laureate Yunus provides credit loans to the poor and has so far helped more than 100 million people around the world to escape poverty. In this way, the more ways to help the society in a financial way, the more negative perceptions many people have about financial-related things will be reduced. In recent years, there have been more and more forms of combining technology and finance, and proper terms such as financial technology have also evolved. In addition to using technology to allow the existing financial system to operate in a convenient, low-cost, and fast manner, perhaps using the power of technology can also bring financial innovation and development to many poor areas.

Just like new technologies such as blockchain technology, cryptocurrency, and digital assets, the birth of these technologies has brought a lot of possibilities. Among them, the form of organizational participation designed through blockchain technology is called a decentralized autonomous organization (DAO), which may be a possibility to play an important role in promoting the development of the world. Try to imagine that there is a DAO of the World Association for the Promotion of Financial Fairness. The participating members come from all over the world to work out a set of mechanisms to leverage the power of decentralized management to promote financial democratization, and provide more people scattered all over the world with effective financial services. Compared with the current international organization type, more people who are interested in participating can provide more power to promote the development of the world in different ways besides donating money.

In the near future, digital assets will definitely bring many changes to human life, and cryptocurrencies will no longer be just something that can be earned in investment speculation. Through the development of finance and technology, coupled with the improvement of infrastructure such as communication networks Popularization, from the perspective of the whole world, more people will have access to fairer and more effective financial services.

The following is by using the recent hot ChatGPT, setting the question as the life of the protagonist on a

certain day in 2050. The protagonist also participated in a meeting on the topic of financial democratization, and added a digital description.

"One day in 2050, the protagonist AL wakes up and learns the weather and the latest news from the smart assistant on his mobile phone. After he wakes up, the smart bracelet on his wrist automatically detects his physiological data and provides him with health advice and exercise plans. He uses a smart home system to adjust lighting and air conditioning to provide a comfortable living environment. When AL arrives at the office, he uses his personal assistant for work tasks, including handling documents, answering calls and scheduling meetings. He conducts virtual meetings through VR technology to communicate face-to-face with colleagues from all over the world. After get off work, AL and friends play games and interact socially through VR technology. In the evening, AL attended a civic meeting to discuss issues related to the democratization of finance. They discussed how blockchain and artificial intelligence technologies can be used to democratize finance, and explored the problems and limitations of the traditional financial system. AL and other participants discussed the meaning and value of financial democratization, and how to promote fair and sustainable development. They discussed how to use data and technological innovations to achieve a more just and transparent financial system and increase the participation and control of ordinary people in financial decision-making.

After the meeting, AL and other participants continued to exchange and discuss these issues. They discussed how to promote social inclusion and equality, and how to achieve a fair and stable development of the global financial system.

Overall, the digital future brings not only more convenience and comfort, but also more challenges and opportunities. Through citizen meetings and discussions, people can come together to explore these issues and seek a more equitable and sustainable future. 』

The above is what was replied by ChatGPT. The final conclusion is worthy of attention. In the era of rapid technological progress, we as human beings must also change the form of citizen participation to further promote fair and sustainable development.

In addition, the following is the future world imagined by the author MICHAEL A. MCCARTHY in an article published on the Internet in April 2022:

『"It’s the year 2043 and you’re running late for a meeting that will shape the future of the place you live.You’re riding Los Angeles’ new electric speed rail instead of driving on congested freeways, because a new democratic process for allocating funds has completely reshaped the city in recent years. You step off the train in the Public Finance District, where the streets were converted into pedestrian zones after huge investments in transportation eliminated the need for cars downtown.

The cleanliness of the sidewalks would have come as a shock even 10 years ago. Gone are the days when people with nowhere else to go lived on them. Instead, the city has allocated finance into public housing and health projects that have gone a long way toward solving the problems of the city’s worst off.Today, you have a chance to participate in the process that helped these changes come to be. You pull out your phone to check the message you received months ago: “Minipublic Duty Notification: You have been selected at random to participate in the citizen assembly for the People’s Bank of Los Angeles in its Green Futures division. The assembly will make decisions about financing that will determine what green public goods our city will invest in in the future. Your voice and judgement are essential.” So you pick up the pace, heading in the direction of the public bank. ... (quoted from https://www.noemamag.com/a-world-where-finance-is-democratic/)』

Compared with the future world that was previously answered by ChatGPT, this imagination brings in more concepts of citizen participation,

As described by the author, the form of civic participation in the future may also be different due to digitization and technological advancement.

At present, it seems that the continuous development and maturity of blockchain technology will very likely bring about changes in the form of participation. A fairer and more democratic, stable and efficient financial world that brings benefits to more people may become the norm in the near future. Perhaps after a while, after the development of different technologies, the future appearance will undergo a major change, but I believe that it will still be very important in the pursuit of financial democratization. After all, a successful financial system has indeed brought benefits to mankind in the past. Unexpected development and well-being.