Redesigning Finance with the new modalities of Trust - Networks, China, Blockchain

TL;DR

There is a disconnect between finance and the real economy, even with the innovations in fintech. Holistic innovation is needed to integrate payment processes, supply chains, and logistics.

Transcript

[Applause] is there a disconnect between finance and the real economy even though there is a lot of innovation going on and rebundling in in fintech innovators are not innovating in a holistic way let us look at the payment sector the most if you want advanced and mature sector in financial services in terms of innovation and yes there we are seein... Read More

Key Insights

• 💁 Blockchain technology can address the issue of information capriciousness and corruption, fostering dependable information flows in supply chains.
• 👻 China's adoption of blockchain technology is driven by the need for information dependability, reducing costs, and allowing for self-governance.
• 📜 Examples of blockchain applications in China include integrating blockchain with the Chinese fapiao system, legal document storage, and supply chain management.
• 🐕‍🦺 The creation of a blockchain-enabled services network in China aims to enable interoperability between multiple blockchain networks, enhancing data flow and tracking.
• 🇨🇳 The upcoming book, "China, Trust, and Digital Supply Chains," examines the importance of trust in blockchain, China's adoption of blockchain technology, and its implications for cross-border trade.
• 🌉 Reimagining finance and supply chains requires the integration of advanced technologies, such as blockchain, to bridge the gap between finance and the real economy.

Questions & Answers

Q: Why is there a disconnect between finance and the real economy?

The emergence of financialization led to a disconnection between the real foundations of value and the monetization dynamics. Money became disconnected from value itself, leading to a loss of how money delivers valuable services to societies.

Q: How can we fix this disconnect using advanced technologies?

Advanced technologies, such as blockchain, can help reconnect finance with the real economy by reducing the cost of information collection, storage, and transmission. This allows for the bridging of gaps between information, goods/services, and money flow.

Q: What role does China play in reimagining finance and supply chains?

China has embraced blockchain technology to address the challenges of information dependability and governance in supply chains. They have developed various infrastructure and application cases, including the integration of distributed ledgers with the Chinese fapiao system and the creation of a blockchain-enabled services network.

Q: What is the focus of Professor Varvik Power's upcoming book, "China, Trust, and Digital Supply Chains"?

The book explores the intersection of trust, blockchain, and China's economic transformation. It delves into the dynamics of trust, the paradox of blockchain adoption in China, and the role of advanced technologies in addressing real economy frictions.

Summary & Key Takeaways

• There is a lack of holistic innovation in the payment sector, with innovators focusing on integrating payment with digital marketing but neglecting payment processes, supply chains, and logistics.

• Professor Varvik Power discusses the importance of innovation that connects finance with the real economy.

• He emphasizes the need to bridge the gap between information about things and processes with the flow of money.