Daily Crypto, Finance, and Tech News Summary – August 17, 2023

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Welcome, and thank you for being part of the MyZucoins community! Let’s get into an interesting piece of crypto, finance or tech news to stay ahead.

African elephants walking, signifying unlocking new potential for economics

Commodity Tokenization: Putting Commodities On Crypto Tokens Could Boost African Nations

Imagine a treasure chest full of gold, cocoa, and oil. This isn’t a fairytale – it’s the reality for African countries like Ghana. But, even with these riches, they struggle to reach their full potential due to unfair trade conditions and limited global access.

Now, what if Ghana could turn this treasure into digital tokens, like turning a physical gold coin into a digital one, and sell these to the world?

This idea isn’t far-fetched – it’s called commodity tokenization and could be a game-changer for Africa.

Take Ghana, for instance. In 2022, it produced an estimated 3.7 million ounces of gold, valued at $6.7 billion; a record 689,000 tonnes of cocoa, worth about $1.65 billion; and oil at a rate of about 150,000 barrels per day.

If these commodities were tokenized, it could boost trade volumes by billions of dollars, increasing the country’s revenue.

Tokenizing commodities like gold would mean converting physical gold into digital tokens, similar to the stablecoin Dai, which is backed by real-world assets.

These tokens, backed by actual gold, would attract investors and countries looking for a stable digital asset. It’s a way for investors to own gold without physical constraints.

Tokenization would diversify Ghana’s revenue streams and position the country as a pioneer in the digital economy.

However, logistics, trust, and security challenges must be addressed to realize this potential. This could include third-party audits from globally recognized firms to bolster investor confidence.

If Ghana and other African countries embraced commodity tokenization, it could spur job creation, increase investment, and lessen dependency on external financial institutions, paving the way for a self-reliant, prosperous future. Read more here.

Economic Potential Through Smart Assets

Cryptocurrencies like Zucoins, with their Splitchain network, have the power to participate in the transformation of economies, especially in places like Africa, where traditional financial systems have often failed.

One of the key takeaways is the potential for the tokenization of commodities.

As we’ve seen, countries like Ghana have vast reserves of commodities like gold, cocoa, and oil. By tokenizing these assets, they could sell them globally, creating a whole new revenue stream.

Commodity tokenization is an innovative way to digitize physical assets like gold, silver, oil, and more using technology like the Splitchain network.

This process involves creating smart assets backed by the value of real-world commodities.

Unlike traditional methods like futures markets, where investors commit to buying or selling commodities at a future date, tokenization offers a more accessible approach.

It could also extend to previously untapped assets like real estate, dividing ownership into smart assets and broadening the availability to a wider audience.

Interestingly, the concept of transparency in transactions is one of the core values of the Splitchain network and aligns with the benefits of tokenization.

Adopting and using Splitchain’s truth-based network would help to level the playing field when trading commodities, becoming a formidable weapon against corruption and illicit financial flows.

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All the best,
Peter & Rob