Digital Dollars

Blockchain’s adoption is being driven by evolving regulation and a growing emphasis on transparency and accountability. This GPS report focuses on two key areas: enabling new financial instruments – such as stablecoins – and modernizing legacy systems.

With the tailwind of regulatory support and factors such as the increased integration of digital assets into incumbent financial institutions and favorable macroeconomics, we expect increased demand for stablecoins ahead. 

Blockchain introduces a decentralized, trust-based approach to managing public sector data. Unlike traditional systems, where trust is established through a central authority – such as a government verifying its own records – blockchain relies on cryptographic proof. 

Globally, government processes broadly remain a series of discrete, siloed steps, which are still dependent on large amounts of paper and manual work. Blockchain offers significant potential to replace existing centralized systems with streamlined operational efficiency, better data protection and reduced fraud. 

Of course substantial risks and challenges remain. These include vulnerability to potential fraud, confidentiality concerns and secure access to digital assets.