#Nigeria #Lagos #financial innovation #Regulated Blockchain #Obi Emetarom

The Financial Landscape at a Crossroads

The world of finance is currently at a pivotal moment. While the expansion of digital financial services has introduced remarkable convenience, it has simultaneously created a myriad of challenges. Issues like regulatory ambiguity, inefficiencies in cross-border transactions, and mounting risks of fraud remain prevalent and are exacerbated by the high costs that still exclude many individuals from fully participating in the financial system.

In light of these challenges, Obi Emetarom, an influential figure in the fintech sector, has authored a groundbreaking whitepaper titled "Regulated Blockchain Infrastructure for a Regulated DeFi Foundation for a Golden Age in Finance." This document outlines a transformative framework designed to address existing issues and to establish what Emetarom describes as a 'Regulated Internet of Value'. This concept involves creating a blockchain-driven financial ecosystem that seamlessly integrates regulatory compliance with innovative technology.

Traditional Finance vs. Decentralized Finance

Traditional finance (TradFi) continues to be plagued by outdated systems characterized by high costs and unwieldy processes. The World Bank reports that average remittance fees globally hovered around 6.2% in 2023, far exceeding the United Nations Sustainable Development Goals' target of just 3%. This discrepancy renders financial transactions burdensome and expensive for millions around the globe.

On the flip side, decentralized finance (DeFi) has encountered its own set of challenges, predominantly revolving around issues of trust, user adoption, and regulatory oversight. Just in 2023, Chainalysis reported losses exceeding $1.8 billion due to hacking and fraud related to cryptocurrency, spotlighting the urgent need for a pragmatic and secure regulatory approach.

Enter Regulated Blockchain

Emetarom's whitepaper argues persuasively that a Regulated Blockchain Infrastructure could serve as the crucial link that combines the strengths of both TradFi and DeFi. At its core, Regulated Blockchain represents a new paradigm of utilizing blockchain technology to democratize financial service innovations while ensuring strict adherence to regulatory protocols.

This infrastructure brings forward the advantages of speed and security inherent in blockchain technology while incorporating necessary oversight to guarantee compliance and mitigate the risk of fraud. By facilitating a compliant framework, banks, fintech companies, and payment processors can leverage blockchain technology for transactions that are not just faster and cheaper, but also safer. This evolution aims to enable individuals and businesses to manage their finances more effectively, offer a more streamlined service from financial institutions, and facilitate regulators in their duty to minimize illegal activities—all while making essential financial services more reachable.

By embedding regulatory protocols directly into the fabric of blockchain technology, stakeholders including financial institutions, fintech innovators, and regulators can foster an ecosystem characterized by seamless financial services and automated compliance mechanisms as well as heightened levels of transparency.

A Call to Action

"This whitepaper serves as an urgent call to action for policymakers, traditional financial institutions, and innovators in the space," asserts Obi Emetarom, who is also the CEO and co-founder of Zone. "The current global financial architecture is antiquated, and we must pivot towards systems that are secure, inclusive, and impactful on a worldwide scale. The aim here transcends mere efficiency; it is about reshaping finance to be equitable and accessible for all."

Economic Growth and Regulatory Efficiency

The whitepaper lays out the significant advantages that Regulated Blockchain Infrastructure can provide in terms of enhancing economic growth, improving financial inclusion, and boosting regulatory efficiency. For central banks and financial regulators, this framework offers not just a way for seamless oversight but also an avenue for risk mitigation while still championing innovation. Fintech companies, on the other hand, gain a clear pathway to adopting blockchain technologies without excessive regulatory channels.

Investors and global financial institutions stand to gain from a secure and transparent framework, enhancing opportunities for capital allocation and prudent investment decisions. The emergence of Central Bank Digital Currencies (CBDCs), currently being piloted in over 130 countries, indicates a growing acceptance of blockchain-based financial solutions. The Regulated Blockchain takes this momentum further by integrating elements like programmable compliance and automated financial products which can redefine how value is exchanged, stored, and managed.

Emetarom's overarching vision entails the interconnectivity of multiple Regulated Blockchains functioning together as a 'Regulated Internet of Value', ushering in a future where a digital and automated economy can thrive.

The Time for Change is Now

As the speed of technological advancement accelerates, this is the crucial moment to reassess the foundations of the global economy. The insights and roadmaps presented in the Regulated Blockchain whitepaper could serve as guiding principles for policy makers, financial leaders, and technology innovators in their quest to build a more effective, inclusive, and impactful financial ecosystem.

To access the full whitepaper, click here.

About Obi Emetarom

Obi Emetarom is a seasoned fintech entrepreneur and the CEO and co-founder of Zone, recognized as Africa's fastest-growing payment infrastructure company. He has dedicated over 20 years to spearheading financial technology innovations that bridge the gap between traditional and decentralized finance, playing a vital role in reshaping the industry landscape.