With blockchain and NFTs in travel, we see a move from centralized to decentralized systems. This is happening as more companies begin their transition into this new technology-driven world order. Consider recent airline industry developments and interlining — a relationship between airlines that enables one to sell services to a client provided by another airline. With carriers establishing one-time partnerships with each other is a pretty inefficient method to do things. Blockchain would allow for a trustless network of airlines to join an interlining platform, allowing them all to profit.
NFT technology is another area of opportunity for the travel sector. Today, NFTs are mostly known as digital art, but they’re also tools for containing automated digitized agreements. You can automate agreements linked to an NFT, and you may have NFTs with varying degrees of access to VIP lounges or other perks. It’s a clever way to verify your right to something while also allowing automated smart contracts that can automate what the owner of that NFT is able to do with it.
The travel and transportation sector is fragmented, with many competitors and possibilities for cooperation, but it’s too time-consuming, inconvenient, and there are far too many pitfalls around trust to make this work on a large scale. Blockchain may truly solve the problem by making things transparent and connecting companies from all over the world who wouldn’t otherwise be connected.
Colorado Accepts Tax Payments In Crypto: Was It Just a Matter of Time?
It appears that cryptocurrency is here to stay as US states are starting to show their support for this new technology. The State of Colorado announced that they will be accepting cryptocurrency tax payments as soon as summer 2022.
Colorado residents may pay their taxes in cryptocurrency, with the state converting the money back to fiat as soon as it is received through an unnamed middleman. Within a few months, crypto payments can be made for something as simple as a driver’s or hunting license. It’s only a matter of time before the other US States follow suit!
For instance, California State Senator Sydney Kamlager has proposed an interesting bill that would allow the citizens to pay their taxes with cryptocurrency. The proposal aims at fulfilling one of the many promises made by blockchain technology, which is transparency and efficiency in government services delivery while cutting down on costs associated with cash payments or other intermediaries such as credit card companies who take hefty commissions off each transaction.
The necessity of holding fiat currencies will be significantly affected if cryptocurrencies are used to pay taxes since crypto debit cards are making paying for products and services considerably easier.
The UK, US Regulators Call for ‘High Levels’ of Global Collaboration in Overseeing Defi
The United States and the United Kingdom called for more international cooperation to help them regulate decentralized finance (DeFi) and the cryptocurrency industry. The Federal Reserve is collaborating with other central banks and international partners to advance the Group of 20 (G20) nations’ cross-border roadmap, which has the potential to reduce G20 crossborder payment delays.
Six central banks, including banks from Australia, South Africa, Singapore, and Malaysia, are collaborating at the Bank of International Settlements (BIS) on a research project that focuses solely on Central Bank Digital Currencies (CBDC). The study looked into the whole digital world, including stablecoins, crypto assets, and innovation in finance. One of the major issues this study will try to address is whether these alternative currencies can help ensure that the payment and financial systems develop in a responsible way while also maintaining stability, soundness, and financial integrity.
The researchers concluded that their prototype settlement system for state-backed virtual assets was “technically feasible.”
A lot of progress in unlocking the potential of digital assets and services will rely on a very high level of international collaboration.
Morgan Stanley Sees DeFi Remaining ‘Fairly Small’ as Growth to Slow
The promise of no middleman may be appealing, and DeFi is marketed as a means of upgrading the existing financial system, but Morgan Stanley has found little evidence to suggest that DeFi protocols are more efficient than the current system.
DeFi protocols may appear as a method for protocol operators to earn money by enticing cash flow. It’s hackable, and it’s vulnerable to financial crime given that anonymity is an important feature. According to Morgan Stanley, a lack of know-your-customer (KYC) and anti-money laundering (AML) information will prevent institutional adoption. The need for KYC and AML standards will force DeFi to become more centralized. KYC (Know-Your-Customer) is the procedure of identifying and verifying a customer’s identity, which is used to combat fraud and money laundering.
DeFi will not expand the money supply (for the same cryptocurrency), which means it will be more difficult for DeFi to be perceived as an alternative to fractional reserve banking — that is a system in which only a fraction of bank deposits are backed by actual cash on hand and available for withdrawal. As a result, Morgan Stanley expects that DeFi will remain fairly small in the years ahead.
New $100M Fund To Bolster Blockchain Development in Vietnam
We all know that the West is traditionally where you go for technology and finance, but a recent poll shows people in developing nations have a more favorable perspective on bitcoin than those in richer, more developed countries. As crypto exchanges continue to open around the world, Vietnam is one of the most receptive countries for cryptocurrency trading. Recently a $100 million fund was set aside by AEX -a digital asset platform, to help develop the blockchain sector as locals have shown a high level of interest in cryptocurrencies.
The company’s continued worldwide expansion is dependent on its rapid growth in Vietnam, which is a crucial country within the region. The first $100 million will be dedicated to local space-focused initiatives. The firm’s intentions include providing high-quality DeFi projects with liquidity incentives and ensuring that crypto-financial enterprises comply with regulations.
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