Opinion

The Digital Avalanche

By Robin Saban

Welcome to 2021 and I hope all of you had a great holiday season and feel happy to be back in normal daily life.

Let’s make the year 2021 the year of new beginnings and of writing a new chapter in our life.

I believe we need to be ready and must always be prepared for unexpected phenomena like in the past year 2020 with Covid-19 which is still going on.

Therefore, in the first article of 2021, I want to bring your attention to the new world financial system.  

Very soon there will be a big reset in the financial world and in the world economy.

Such as new changes coming along in the IMF (International Money Fund) in other words, a new Bretton Woods moment on the horizon for the world new financial system. Unified rules and policies that provide the framework necessary to create fixed international currency exchange rates calling for the IMF to determine the fixed rate of exchange for currencies around the world.

To ensure a durable recovery and resilient future as countries adapt to structural transformations brought on by climate change and new digital and knowledge economy.

Industry 4.0 is up and running and industry 5.0 is ready to take over the rest of the 21st century.

We should be ready to embrace the new coming of the Bretton Woods expectations, otherwise many nations will perish. So being a relevant nation or an irrelevant nation is up to each nation.

In 2020 I have written an article called “To be or not to be – or To be relevant or irrelevant”. The title of the article says it all. It all depends how we undertake the up-coming Digital Avalanche that is winking at us on the horizon.

We need to understand Blockchain Technology because the future is in BlockChain Technology. Cryptocurrency is now widely exchanged and the IMF will come up with an internationally used digital currency to change the reserve monetary system. This new monetary system will happen sooner or later whether we like it or not.

Many countries are not using hard currencies anymore. Even paying for a cup of coffee is paid with a credit card or debit card or with another digital payment system. Fast forward it means that you can even pay for a cup of coffee with an accepted cryptocurrency.

The reasons for establishing the new system of payment are because printing paper money and coins is very expensive for all countries central banks, and also because it is hard to prevent counterfeit money and money laundering. Each country already has its own national digital currency and has established a digital payment system.

In the blockchain digital financial system there is no room for money laundering so all the financial activities will be tracked by the banks and world financial institutions. Countries will not be able to give fake financial reports to the World Bank or creditors. Financial corruption will be blocked or eliminated, the banks will not accept the hard currencies and all the currencies must be logged and deposited into the digital financial system, thus for reasons of taxation, tax fraud will be eliminated and the source of your income must be declared. 

So, if we are not ready or try not to understand what’s waiting for us in the near future, tomorrow will be too late. We may not be able to catch up with this upcoming giant movement. However, some measures can be taken in order not to be crushed under this new digital avalanche and we need to look into them.  

Therefore there is no room for wasting time unless we do not care for the next generation of our nation. We must keep up with the rest of the world.

Until the next article, please stay safe and sound and God bless you all.

Robin SABAN, UPF Peace Ambassador. 
robinsaban@hotmail.com

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