Dinis Guarda and Jonny Fry, CEO of TeamBlockchain and Influencer of the Year CryptoAM 2022 Awards, discuss the various aspects of digitalisation of assets, including the latest developments on blockchain technology and the current state of global regulations and legislations. Both experts provide all these answers in the latest episode of Dinis Guarda YouTube Podcast, powered by openbusinesscouncil.org and citiesabc.com.
The digitalisation of assets has emerged as a profound and transformative force in today’s global economy. As traditional forms of ownership and access give way to digital counterparts, a wave of possibilities emerges, offering individuals unprecedented control, accessibility, and opportunities.
The potential applications are vast and extend beyond finance to fields like supply chain management, intellectual property protection, and more. As Jonny Fry, CEO and Influencer of the Year at the CryptoAM 2022 Awards, commented in the latest episode of Dinis Guarda Podcast Series:
"Whether you earn a lot of money (or lose a lot of money) in crypto, it will not change society. Whereas, using technology to make it more open, fair, and accessible, and one that cuts costs; that's really what most of the people are interested in".
Furthermore, during the 50 minutes or so that the interview goes on, Jonny shared his vast well of insights in digital assets with Dinis. He told him that cryptocurrencies are just the tip of the iceberg, and the real potential benefits of blockchain technology lies in its application in every other industry, including agriculture, fashion, healthcare, and retail.
Digitalisation of assets: Transitioning from tangible to digital
The digitalisation of assets encapsulates a profound shift from tangible, physical possessions to intangible, digitally encoded representations. It's a shift that transcends industries, encompassing everything from real estate and fine art to commodities and intellectual property.
"Cash is becoming increasingly harder and harder to use and spend. While most of the European economies are restricting the use of cash, people are turning towards the use of digital assets, as it provides real-time raw data and security", explained Jonny.
In essence, it is the process of converting these real-world assets into digital tokens, often through the application of blockchain technology. Jonny also gave an example of a collaborative project between NTT, a Japanese telco, and The Vatican to digitally render and create NFTs for the entire Vatican Treasury.
"Just imagine, some of the artefacts, that haven't seen the light of the day for hundreds of years, will be converted to NFTs and be used to generate revenue.
A digital version of these collections could be a more inclusive solution.", he said.
Blockchain technology enables democratisation of ownership
Historically, ownership of tangible assets like real estate or rare collectibles was confined to a select few due to financial constraints or geographical limitations. However, the advent of blockchain and tokenisation has democratised ownership, enabling fractional ownership that lets individuals invest in assets with even small amounts of capital.
Sharing a recent research study by Goldman Sachs, Jonny highlighted that very high net worth individuals invest about 43% in alternative investments, like antiques, Venture Capital funds, and hedge funds, to name a few.
"By digitalisation of some of these investments, we can provide access for small investors to these typical alternate investments, and enable them to open markets", he told Dinis.
This newfound accessibility levels the playing field, allowing people from diverse backgrounds to participate in investment and wealth creation.
In fact, he also highlighted some examples, like Starbucks Odyssey, where collaborative efforts are actually leading to ultimate wealth creation, while also fostering a healthy competitive spirit.
Regulation of digital assets: Ensuring trust and transparency
In the realm of digital assets, where transactions often occur across borders and without intermediaries, trust and transparency become even more vital. Regulatory frameworks can help establish industry standards, codes of conduct, and compliance measures that build confidence among investors, users, and stakeholders.
By ensuring that market participants adhere to rules and reporting requirements, regulators can create an environment that safeguards against malicious activities and enhances the legitimacy of digital asset markets.
Jonny told Dinis that the British Law Commission has given “some very helpful recommendations” for legal clarity about digital assets, their obligations and responsibilities.
“From that legal clarification, we will get regulatory clarification. We are seeing some regulated exchanges which are allowing digital assets to be traded and exchanged 24/7. This opens huge opportunities.” he said.