The Evolution of Fintech in The Era of Natural Resource Titans

As more and more people begin to acclimate to pseudo block chain currencies and more governments adopt them–the dominance of both banks and Visa/MasterCard as major payment processing platforms will recede. In 2021 Visa’s net revenue was 7.1 billion dollars according to a Barron’s financial report; while MasterCard nabbed more than 18.8 billion. New tech may make older money wire options like Moneygram and Western Union obsolete or at the very least offer palpable competition. And this is to be expected as the entire world begins to advance in tech, financial savvy and independence.

The truth is that many of these old institutions have had a strangle-hold on the payment processing and fintech market for decades–and for no real purpose other than that they deal in dollars. According to IMF reporting prepandemic world remittances registered at 550 billion dollars a titanic sized industry which saw fluctuating growth between 2017-2019. While remittances have yet to fully recover from the nearly 10 percent drop in the 2020 Pandemic Year, new platforms are emerging to service the needs of an emerging new world. From ApplePay to CashApp in the US, the #fintech economy is growing. This means people can begin to circumvent archaic and less user-friendly money wiring behemoths and platforms for more agile and accessible ones that meet the new needs of a more digital society.

As the old guard continues tightening controls, by necessity they create opportunities for newer and smarter #fintech to emerge. More importantly for more agile players who offer attractive options to users now wary of the status quo. Currently China is already testing its eYuan which gives users discounts at their favorite stores according to a 2022 CGTN report. The adoption of smarter and more magnanimous #fintech will likely drive the new currency pivot happening in the world today. Swift may likely be abandoned altogether for more agile and less restrictive #fintech solutions. Weaponizing SWIFT could not have happened at a worse time in fiscal history.

And this matters, as some of the world’s most resource-rich and manufacturing-heavy economies have begun to look for alternatives. While we’d all like to believe that fist/digital money will lead the transition, it will likely be resources that spur it forward. As currency only has the values assigned to it, resource-rich economies have the leverage to dictate new currency and fintech values. Currently, we see how economies are negotiating currency to obtain resources presently.

And that is how it has always been, a brief history of crude oil pricing clearly illustrates how natural resources dictate fiat. Over the years though, the concept was lost and the world found resource titans in Africa and Latin America among others chasing the mighty dollar for name-brand only. However, the current Eastern European clash is once again teaching us that currency is NOT king. Demonstrating a leverage opportunity lost by many developing economies, forced to pawn off their valuable natural resources for whatever foreign currency they could get, rather than negotiating the value of the resource(s) to the buyers.

The game has changed: currency will be renegotiated and likely with the help of #fintech and money transfer platforms like Flutterwave, M-Pesa, RuPay and many others. It is not clear how or if the value of psuedo-crypto currencies and NFTs will remain, but the technology and concepts they have introduced will likely augment the currency and trade space across regions for years to come.

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