Please tell us about your fintech journey so far.
Prior to pivoting to fintech and blockchain, I worked in health care. I was introduced to Blockchain by my son, in 2010 when he told me to buy Bitcoin. I ignored that advice, and I was wrong! In 2016, he asked if I had bought Bitcoin (of course the prices had gone up!) and went on to tell me about Blockchain and that I should learn about it. I realised that Blockchain if deployed and scaled could help solve some of the global problems of our time like financial inclusion, supply chain, identity, and climate change. Since realising the transformative potential of Blockchain for social impact in 2016, I set about to use my experience, networks and influence to envision the world on the power of digital transformation, and to be part of the movement to make it happen at scale. My focus has been on blockchain emerging economies and social impact, and this grew to incorporate DeFi, NFTs, Web3 and Metaverse.
Can you talk about some of the most innovative financial products that will be game-changers for the industry?
DeFi will reinvent finance. The advantage of DeFi is that it enables anyone to interact directly with peers without intermediaries and no need for costly buildings. This improves efficiency, transparency, and access because a mobile phone is required for access.
DeFi offers an alternative to the current closed financial system, one based on open protocols. Composability has been one of the factors that have enabled rapid growth. Because DeFi code is open source, it has been possible for programmers and innovators to build on existing code rather than develop platforms and products from scratch. It has attracted the term “Lego” as assembling DeFi can occur in multiple combinations based on existing code blocks. DeFi decentralizes traditional financial services, including:
- Issuance: Stablecoins, Borrowing and Lending, Insurances, and NFTs.
- Trading: Decentralized Exchanges, Derivatives, SWAPs, Prediction Markets
- Ownership: Wallets, Fund Management, and Payment Networks.
Also Read: Global Fintech Interview with Jim Stickley, Chief Executive Officer at Mahalo Banking
What are some of the top Crypto trends you’re seeing get more attention in 2023?
2023 has been a continuation of the bear market from 2022. The big focus has been around the collapse of Terra Luna, FTX and now Binance is under scrutiny from the US regulator. Increasing regulatory scrutiny is the strongest trend in 2023. Metaverse is a growing opportunity projected by Citi to be a $13 trillion opportunity. The market is maturing, we will see improved user experience, more innovation and more regulation. Gaming will be a continued path to wider adoption of Blockchain.
The number of unique DeFi users has increased by nearly 700% over the last couple of years. What is driving change in fintech?
According to Chainalysis (2021), DeFi represents one of crypto’s fastest-growing and most innovative sectors. The top 10 countries that use DeFi are the United States, Vietnam, Thailand, China, the United Kingdom, India, the Netherlands, Canada, Ukraine, and Poland. However, adoption patterns are changing as other geographies learn about DeFi.
Chainalysis also reported that initially (from April 2019 to June 2020), most traffic to DeFi protocols came from North America and Western Europe. However, since June 2020, they have seen more traffic from other regions, especially Central and Southern Asia. Chainalysis (2021) reports that large transactions account for more than 60% of DeFi activity, compared to under 50% for all cryptocurrency transactions. This is suggestive of an increase in institutional investment in DeFi.
The two main aspects of DeFi that have accelerated its rapid adoption are inclusive and peer-to-peer. Anyone with a digital wallet and internet connection can access it, and it is composable, meaning anyone can access the open-source code and modify it to launch a new idea. It means that DeFi projects are launchable incredibly quickly.
Also Read: Global Fintech Interview with Stefania Di Bartolomeo, Founder and CEO at Physis Investment
What is one piece of advice that you would like to give to our readers for their financial security?
Do thorough due diligence. If it looks too good to be true – it probably is. DeFi is in an exciting experimental phase, but investors need to look into the project’s tokenomics, team experience, partnerships and roadmap, market sentiment, and remember that smart contracts can be attacked. Even if they are audited, it does not give you a guarantee that it will be exploit-free.
What is one domain you would like to explore shortly to create more equitable systems?
The Play-to-Earn business model embraces the concept of an open economy and provides financial benefits to all players who add value by contributing to the game world. It’s likely to introduce new game concepts and retention models not yet seen. By participating in the in-game economy, players are creating value for other players and the developers. In turn they are rewarded with in-game assets. These digital assets can be anything ranging from cryptocurrencies to in-game resources that are tokenized on the blockchain. That’s why the play-to-earn business model goes very well together with blockchain games. The powerful networking effect this tokenization will bring to the financial world, combined with the good incentives of a gamified environment, can create a boom of new businesses and new digital economies, where every citizen in the world with a phone or digital device can participate.
The metaverse is a network of always-on virtual environments in which many people can interact with one another and digital objects, while operating virtual avatars of themselves. Games have become persistent social platforms. They are places where people go to pass time, meet friends, and spend money. There are in-game economies, virtual marketplaces, and unique currencies. Games continue to evolve into persistent online services and virtual worlds for millions of people. Moving to the METAVERSE economy where play is work and work is play. Fun is the on-ramp to the virtual world. Games are evolving into persistent social platforms. We will inhabit them and buy, sell, exchange and earn tokens. “Play to earn” the dawning of a new era.
Is there a webinar or live conference you are most excited about attending and why?
I am heading to the gaming festival in Manila https://sigma.world/asia. I am very interested in the application of gamification to other industries like finance, health and education. Gaming is also creating new economic opportunities in the digital economy. The Philippines is a leader in Asia and I am looking forward to learning from the innovators there.
Tag (mention/write about) the one person in the fintech industry whose answers to these questions you would love to read!
Efi Pylarinou
Also Read: Global Fintech Interview with Brian Halpin, SVP, SS&C Blue Prism Internal Automation
Before we wrap up, a few biggest learning and tips you’d like to share with fintech innovators and leaders.
- Fear can be overcome! You can do it. You just need to want it enough.
- I learn something new every single day and on most days more than just one thing
- You are building for GenZ and Gen Alpha – their expectations are different.
Thank you, Jane! That was fun and we hope to see you back on Global Fintech Series.
[To share your insights with us, please write to sghosh@martechseries.com]
Dr. Jane Thomason is the Inaugural Chair of the World Metaverse Council and a globally recognized thought leader on Metaverse. She holds distinguished roles on the editorial boards of “The Journal of Metaverse” and “Frontiers in Blockchain” and is an Industry Associate at University College London, Centre for Blockchain. She is the author of “Blockchain for Global Social Change,” “Applied Ethics in a Digital World,” and “Advancements in the New World of Web 3: A Look Toward the Decentralized Future” in press (2023). Dr. Jane is frequently invited to deconstruct the Metaverse and explain how this growing industry will impact the future. Dr. Jane was named as one of “8 Metaverse experts to follow,” “top 100 women in Web 3 and Metaverse,” and “Top 25 Women in Fintech and Blockchain, MENA” and was featured by CNN in their series on the Metaverse “Decoding the Secrets of the Metaverse.” She was recently honored by AIBC Eurasia as “Web 3 Leader of the Year.”
The World Metaverse Council is a platform leading the dialogue for an equitable and inclusive life in the metaverse. The World Metaverse Council is open and decentralized. We promote collaboration to create an equitable, inclusive, and truly decentralized Metaverse and maximize the incredible economic and social possibilities and minimize harms.
The World Metaverse Council launched at World Future Verse Conference, Lake Bled Slovenia, 1 October 2022. The Council seeks to bring metaverse developers and creators together globally to collaborate in the creation of worlds where human beings and their avatars shall enjoy freedom of speech and belief and freedom from fear and want. The World Metaverse Council, seeks to promote the development of friendly relations between Metaverses and to form a common standard for Metaverses everywhere.
