The last couple of years the term ‘fintech’ was very popular but now from startups to investors onwards to government programs, fintech has been in usage. Off late “regtech” and “govtech” have also joined the conversation. But the question that arises in one’s mind, do these terms have anything in common?
They all describe transaction technologies that do enable the secure transfer of value online – whether it be monetary or for that matter non-monetary value. The focus is upon alternative financial technological applications, the usage of modern computing, and technology also means the of building trust and all such tools that are indeed required by every respective government.
It is not surprising then that applications are also popping up in many areas and the regulators and supervisors that are making use of DLT or cognitive computing that governments are providing electronic payments for several public services or even social security. In Poland, much progress has been made to be able to harness the emerging technology for digital identity. In this manner, much can be provided by the state along with other banks and various institutions of trust.
Another important development is the national scheme of electronic identification that is based on the federated model, which also means citizen’s identity that is not only served by the state i.e. banks, insurers and telecom providers who are also able to contribute.
Transaction technologies are indeed defined by the use of a special type of data, data that has documents which are an exchange, agreement or even value transfer between parties.
Transactions are with whom?
- Administrations do transact with citizens to be able to provide them with trusted public services. They also transact with businesses and governments, too.
- Citizens also transact with government through business. Within strategic sectors, like energy or utility business, transacting is the key.
- In this digitalized data-focused economy, transacting data can also even be referred to a special type of various virtualized critical infrastructures.
- Blockchains, as well as distributed ledgers, can also be treated as tools for ensuring data integrity, immutability cum trust.
- Also, it is often observed that the role of distributed ledgers within digital state infrastructure tends to go off unrecognized.
- Ledgers can be tools for licenses, rights and entitlements management.
Digital trust cannot be negated.