Are we about to see a green, eco friendly finance revolution underpinned by blockchain data sets?
Hi Trevor,
Cryptocurrencies definitely have the potential to trigger a eco friendly finance revolution. If this is really going to happen, nobody knows. In any case, this is a great opportunity for "action research" from academics.
In this paper we have summarized some ideas on this subject:
Chapter Can Cryptocurrencies Help to Pave the Way to a More Sustaina...
I agree that Cryptocurrencies have a potential to create green finance. This certainly offers scope for Research.
Any cryptocurrency, that is anonymized will not be accepted by most world governments as that will result in unregulated economy and loses in terms of taxes.
However, the cryptocurrencies that are issued by government recognized agencies will be valid in a country but the world is still to reach a point where a global institution with the likes of world bank or IMF is there for cryptocurrencies. Such institute would be a major boost towards legitimizing cryptocurrencies.
For distributed ledger technologies we are already seeing early adoption globally.
While the potential for a green finance revolution underpinned by blockchain is significant, it also faces challenges. These include regulatory compliance, scalability, and the need for industry-wide standards. Moreover, the environmental impact of blockchain technology itself, particularly energy consumption in some consensus mechanisms like Proof of Work (PoW), needs to be addressed.
To realize the full potential of blockchain in sustainable finance, collaboration among governments, financial institutions, blockchain developers, and environmental organizations is crucial. It's an exciting area where technology and finance can work together to address pressing environmental challenges.