There is this interview published 11 days ago by crypto.news with a certain Xin Yan, sharing the ongoing shift in the minds of politicians and bureaucrats about blockchain technology. We were told that governments all over the world, after seeing the stance of the US concerning cryptocurrency, are now anxious and are willing to follow the lead of the most powerful country, lest they be left behind.
Blockchain is now becoming a priority in the agenda of governments. They are now listening to the need to reform the financial system. Stablecoins and RWA tokenization are increasingly becoming more popular with the passing of days.
“Increasing transparency” is a talk that I find difficult to swallow, for governments thrive in secrecy.
When crypto.news asked Xin Yan what’s driving the interest of governments, the primary influence is due to the changing stance of the US government towards the space. Secondarily, governments now see the benefits of utilizing blockchain, such as speed and efficiency as a payment system compared to what we have now.
Moreover, due to the influence of stablecoins, the sentiment towards the USD is also changing. Before, the narrative of the crashing USD was popular. With the advent of stablecoins, governments are now afraid that the value of their national currencies will decline if they fail to ride the trend. To take advantage of this monetary trend, nations are thinking of launching their own stablecoins.
To achieve RWA tokenization, three foundational infrastructures must be laid down: reform of the monetary system, cross-border payments via the combination of stablecoins with blockchain-based settlements, and digital identity. Once this foundation is completed, governments can start raising capital by tokenizing RWAs like natural resources, gold, electricity, and oil.
As for scalability, Yan confidently states that it is no longer an issue and cited BNB Chain and Solana, plus the utility of layer-2 solutions, as examples.
Yan believes that with the use of blockchain technology, government services will completely transform. Through the use of blockchain, there will be direct interaction between the treasury and the citizens.
If all of these would take place, we will be witnessing the mainstream migrating to the crypto space that will cause the explosion of tokenization. And this will be good news for the early adopters.