Complex Made Simple

Exclusive: U.N. blockchain expert divulges its pros and cons

Massimo Buonomo, the U.N. expert on blockchain talks about its application in finance and education, and provides a little piece of advice at the end!

"The whole bond issuance process is full of mechanical and physical steps that is against what's happening in the market" "In Singapore, they've done it. Once you've graduated, your title goes into the blockchain. So, this has an immediate impact" "Tokenization is amazing ... general people can subscribe to an issuance and are on the same footing as an accredited investor"

"It is amazing to notice that finance that is supposedly considered one of the most dynamic sectors in the world, really to some extent, has an archaeological approach. The whole bond issuance process is full of mechanical and physical steps that is against what's happening in the market," said Massimo Buonomo, United Nations expert on blockchain, while speaking exclusively to AMEinfo about the potential impact of blockchain, upcoming trends, and challenges facing the implementation of blockchain, on the sidelines of the Arab Luxury World conference 2019 in Dubai.

Massimo Buonomo also provides a sneak-peek into the immense potential that blockchain can have in the education industry. "In Singapore, they've done it. Once you've graduated, your title goes into the blockchain. So, this has an immediate impact because, of course, you can use your titles anywhere in the world. Now, in Europe, there are many companies that are trying to do that – French companies, Italian companies – and that has an impact because, of course, this is a huge market. As soon as the European Commission gives an input to recognize the certification of the deployments of the blockchain, the owner of the company will become a millionaire," he said.

Addressing the issue of tokenization revolutionizing investments, Massimo Buonomo added, "Tokenization is an amazing process. In the old days, there was this monopoly of the accredited investors. If I'm a big player in the market, I go to the company and I can say I subscribe to your issuance and the company gives it to me at a discount before going into the market. As soon as the issuance goes into the market, there is an appreciation and sometimes the bad guys sell. Let's say that the price is 50, but they get it at 20, and then after the issuance goes into the market, the accredited investors sell it at 70. Although they get 50 on the issuance, the price then drops when they sell. Who buys at 70? The small investors, who then make a loss when the price drops. So, this whole dynamic is defined by the traditional way of doing finance because of this definition of accredited investors. Now, with tokenization we don't have that any longer … me and you, as general people, can subscribe to an issuance and we are on the same footing as an accredited investor. So there's no such unequal position."