How the Global Recession Will be Overcome
To no one is it a secret that the world is going through one of the harshest economic recessions in recent history. According to the International Monetary Fund, just in April, the world’s advanced economies were suffering a -6.1% shrinkage in their GPD, a number that has presumably gotten even worse in the last couple of months. Although the current economic situation is most often attributed to the global COVID-19 pandemic, many believe that a recession was already ensuing even before the health crisis, which only contributed to making it worse. Governments around the world are struggling to find ways to control the spread of the virus while keeping the economy afloat by injecting liquidity into banks and stock markets.
The solution to the global recession, however, has not and will not come from governments. Nobody knows when and if things are going to come back to normal, but we do know that the economies cannot just keep stagnating forever. That is why, in order to overcome the current crisis, we all need to adopt an entirely new mindset and change the way in which we do business and manage out money. These changes have implications for investors, business owners and customers alike.
Business owners need to find ways to adapt their products and services to the current situation, not just by making them more accessible to customers while reducing their need to move, but also by adapting the workplace so that, if possible, their employees can work at a distance. Investors need to develop a keen eye for innovation, by thinking outside the box and daring to leave behind the investments that were commonly believed to be safe and instead look for those that lead to innovation and disruption in the markets. Meanwhile, customers are going to be demanding products and services that allows them to remain at home and make this stay an easier and more pleasant experience.
For all of this to be possible, technology must play a key role. Perhaps the most important requirement for the world to adapt to and eventually overcome the current economic crisis is for frictions in the mobility of capitals to be reduced, and for people to have a higher control on the ways in which they manage, spend and invest their money. As these frictions are reduced, it will become easier for businesses to create innovative products and services that correspond the current demands, and to adapt their models to the current situation. It will be much easier for investors to find and fund innovative ideas, and for emerging entrepreneurs to get their projects funded. Finally, customers will have a higher access to services and products, and consequentially better prices and more avenues to spend. As a result, the economy will be more dynamic, and wealth will be more accessible.
Although it is not hard to think about how a higher mobility of capitals will benefit the global economy, the technologies that will allow this higher mobility do not just appear overnight. Luckily, there is a company that is working and a technological framework that is intended to make it all possible. Konzortia Capital aims to increase the options for customers, investors and traders to manage and employ their money in an unprecedented manner. Being the holding company of three highly innovative financial technology (FinTech) companies, Konzortia Capital is developing a technological framework for the whole financial industry to operate, that will include all actors, from small businesses and individuals to big time financial institutions.
The companies in the Konzortia Capital holding include Novabank, an online banking solution that will bank the unbanked and allow multi-currency accounts and real time global transactions, and InveStart, a platform for small businesses to raise capital without borders. Finally, Capitalista, will be the platform for users to issue and trade a new type of financial assets in a new global market index called the NAO (New Asset Offering). These services will be seamlessly integrated in a DLT environment using a new type of digital currency called Koura, which will be exchanged on a one to one relationship with any fiat currency. This will result in a wider and more interconnected global market for services, products and financial assets, which will be faster, more secure and more transparent.
Not only will Konzortia Capital provide a platform that will grant investors more avenues to find innovative projects and invest on them, but the holding is in itself an incredible investment opportunity. 13% of Konzortia Capital’s equity is represented in a Special Purpose Vehicle (SPV), as a digital New Asset Class called Kor, which is expected to be able to be traded in Capitalista’s platform as the New Asset Offering emerges. This allows investors to gain not just a potentially high return, with exponential growth and the ability to gain dividends, but also allows them to develop a clear exit strategy.
The innovations being developed by the companies in the Konzortia Capital consortium are not just going to disrupt the financial services market in an unprecedented manner but might become a worldwide technological solution to many of the economic problems opposed by the global recession. These technologies could be the way for the world to overcome the current economic situation, as well as for potential investors who see such a situation as an opportunity rather than a problem, and will take this opportunity to grow their portfolios rather than letting them be dragged by a stagnant economy.