“The recently implemented digital asset laws will grant us access to capital markets that were previously unavailable to us. This access will allow us to develop crucial tourism-related infrastructure, thereby unlocking the potential for growth in the tourism sector. This expansion will ultimately result in economic benefits for every Salvadoran citizen.”
Roberto Laguardia, the president of Inversiones Laguardia
This is an excerpt from the Cryptoslate report “Bitfinex issues tokenized debt for El Salvador’s first hotel funded via blockchain”.
Before we get into details on what the future looks like with tokenization, powered by blockchain, it's worth drawing attention to the fact that the above development in El Salvador is expected to create up to 1,000 jobs during hotel construction and over 5,000 jobs openings is speculated during its operation.
This is as a result of “blockchain technology”.
It isn't common to hear people talk about idle wealth spread across the globe, but it is a thing. We are starting to experience developments that would lead to a more interconnected world where investment can flow from ecosystem to ecosystem, leading to a more healthy global economy where value is maximally utilized.
Tokenization is a power house
An economic power house to be exact.
We are essentially dealing with a technology that will not only unlock new capital flows, create jobs but also serve as a medium for foreign setups to build new reputation.
As though tokenization in this context, happens primarily on a public and decentralized blockchain, individuals, companies and governmental bodies involved are essentially putting out public records as they earn global funding to build or develop one system or the other.
This is an important step in the right direction for the human race, particularly in the field of business. The success of blockchain as a trustless and permissionless network(from a centralized idealogy) paves way for a more trusted society as on-chain data becomes a reason for various establishments to stay true to causes set out to be accomplished.
The economic value of this cannot be overstated; increased financing, increased value flow, increased productivity, this is only a few of many merits that comes with the tokenization of global economies.
El Salvador Is A Start
It is in human nature to seek better place of dwelling at every given turn. This means that in a world powered by an open financial network, it will be more common to see investments flow from ecosystem where it underperforms or is restricted in some form to ecosystems where it is well utilized.
El Salvador appears to be country set out to take full advantage of what is happening.
If we take a second to look the journey of crypto, we'd realize the game bends to profit at every given turn. Whatever is most spoken of, most appreciating, automatically earns industry's value flow.
This is why one minute NFTs are hot, next minute memecoins are hot, and all of this can be happening across different blockchains at different instances. This is evident that the ecosystem is out for “what's generating value” because otherwise, what's your purpose?
To bring it back to the traditional world, what this means is that with world economies becoming largely tokenized, we are bound to see foreign investments flow from one ecosystem to another depending largely on where things are proving to be worth the value being concentrated.
This very reality we are moving into is pivotal for keeping global development thriving to be up to speed rather than being undermanaged. With the case of Bitfinex tokenized debt to build in El Salvador, we are looking at a 10% investment yield over 5 years.
The minimum investment at the time is $1,000, which is reasonable. That said, as more developments phase in, we should be expecting lower investments required and even higher ROIs.
All flowing without limitation through a global network of nodes. The interoperability of international economies via tokenization on blockchain is set to unlock new ways to create, maintain and grow value.