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The Impact of Web3 on Borderless Banking in Southeast Asia

The Bretton Woods Agreement, established in 1944 to govern monetary relations between participating states, laid the foundation for the modern global banking system.

The traditional financial system, rooted in Western ideals, categorizes emerging markets as high-risk, perpetuating neocolonialist beliefs of superiority in Western practices.

Southeast Asia has seen significant growth in banking services, with emerging markets projected to dominate global trade flows by 2035. Legacy banking systems hinder market potential by imposing unnecessary barriers based on geographical biases.

The emergence of Web3 presents an opportunity for a decentralized, unbiased financial system that leverages raw decentralized data to analyze risk factors independently of institutional biases.

In a Web3 environment, permissionless data minimizes the need for trust in onboarding clients, providing a clearer and more objective view of potential customers for financial institutions.

Web3 technologies have the potential to level the playing field for countries in Southeast Asia by improving the quality of KYC/AML procedures, reducing geographical, cultural, and racial biases in financial infrastructure.

Tintra is committed to providing a scalable banking infrastructure with patented machine learning and artificial technology on a full Web3-enabled platform, promoting fiscal inclusion and diversity in banking.

The evolution of Web3 in Southeast Asia signifies a financial revolution that aims to drive unprecedented growth in fiscal inclusion across the region, challenging Singapore’s dominance as the main global banking hub.

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Image credit: Canva Pro

This article was first published on August 9, 2022.

The post How Web3 will revolutionise borderless banking in Southeast Asia appeared first on e27.

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