The developing world is awash with massive infrastructure projects that are funded with Chinese loans. However, recent events point to a situation where these loans may not be sustainable. At the moment, close to eight countries are on the blink of bankruptcy, due to the weight of these loans. Clearly, there is need for a paradigm shift in government infrastructure financing. So what’s the future?
There are many possible solutions to government funding, but the most viable of them all is blockchain based crowdfunding. One blockchain platform that is blazing the way on this front is XinFin. The XinFin blockchain enables governments to crowdfund for finances internationally, thereby eliminating the need for costly loans. According to the XinFin website, governments can crowdfund using XinFin smart contracts and the XinFin tokens. If governments begin to use this model of financing, the value of XinFin (XDC) will shoot to the moon.
That’s because, the more governments make use of the XinFin blockchain in raising finances, the more valuable the XinFin (XDC). This value is rooted on the fact that the XinFin (XDC) token will be driving the entire crowdfunding process.
Of course, XinFin (XDC) will also be pushed up by the fact it is way better than most other blockchain platforms in the market. For instance, XinFin has some of the fastest transaction speeds in the market. This adds to its appeal to governments, given that the funds raised can be received fast, to be utilized in the needs that they are meant for.
Chances of governments signing up are quite high too. That’s because expensive loans threaten their very existence. As things stand, several developing countries, especially in Africa are being forced to overtax their citizens, in order to keep up with the loan repayments. Obviously that is not a good thing to the long-term survival of such governments. If presented with a cheaper option that doesn’t come with the risk of falling out of favor with the electorate, many leaders would take it. In essence, all it will take for XinFin to become the standard for government financing is to get adopted by one or two governments and the rest will follow suit.
Besides, XinFin is a hybrid blockchain, which means that it keeps the identity of transacting parties private. This too is guaranteed to drive governments towards blockchain based financing for geopolitical reasons. This is guaranteed to increase the intrinsic value of XinFin and push it up the crypto market cap rankings.
When you put all these factors into consideration, it’s not hard to see why XinFin is headed into the top 50 utility coin list. This is a crypto that beats higher ranking cryptos like Bitcoin and Ethereum on multiple aspects, including speed and scalability. Being adopted by governments for infrastructure financing is icing on the cake!