Blockchain

World Economic Forum: blockchain is key to sustainable digital finance

The latest World Economic Forum (WEF) report, praises blockchain technology as a key factor of sustainable digital finance, a concept merging digital technology with business models founded on environmental consciousness.

 

UBS executive Kain Oertli lists digital finance, artificial intelligence, mobile platforms, and IoT (Internet of Things) and social and governance frameworks, as key enablers for governments as well as corporations willing to achieve their sustainable development goals.

 

Oertli believes that this sustainable digital finance will help in creating innovation and growth all whilst supporting a sustainable economy. This builds up on the research by the Organization for Economic Cooperation and Development (OECD), stating that blockchain can open possibilities for new business models with sustainable finance in mind, including carbon reduction.  

 

Bitcoin has been subject to criticism, due to its considerable carbon footprint, and although Bitcoin’s environmental impact assessments differ, a study in 2018 indicated that Bitcoin network consumes a quarter of Australia’s electricity. Nonetheless, OECD believes that blockchain technology will bring about the systemic changes that lead to creating a sustainable infrastructure.

 

In conclusion, WEF says that around of 1,200 start-ups as from 2013, have leveraged blockchain.