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12° Nicosia,
20 July, 2024
 
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How blockchain technology is reshaping financing

Tech-savvy entrepreneurs thrive with alternative financing

By Yiannis Georgoulas

In this age of technology, digital transformation, and the omnipresence of the internet, alternative digital financing is emerging as an innovative and effective solution for both businesses and individuals in need of financial support.

These individuals either do not wish to or cannot, for various reasons, resort to traditional banking institutions. These new financing avenues offer quick and hassle-free approval and disbursement processes.

Crowdfunding stands out as one of the most popular digital alternative financing methods. With this approach, individuals from across the globe can contribute funds towards a product or service that piques their interest. Dedicated platforms showcase these products or ideas, allowing anyone to financially support them and, in return, potentially gain a share in the business or access the product at a discounted rate.

This empowers budding entrepreneurs and creators to nurture their business concepts without the need for conventional bank loans. Additionally, the rise of cryptocurrencies and their underlying blockchain technology has unlocked fresh financing possibilities. Initial Coin Offerings (ICOs) and Security Token Offerings (STOs) enable businesses to raise capital by selling cryptocurrencies or offering investors stakes in the company.

Another emerging funding avenue is peer-to-peer online lending platforms, which grant easy access to finance for both individuals and businesses. These platforms connect borrowers directly with lenders through the internet, bypassing the conventional banking system, resulting in speed and convenience.

The digital future of finance has already ushered in countless opportunities for entrepreneurs and investors alike. With technology continuously evolving, the financial landscape is poised for ongoing transformation and growth. It is imperative for stakeholders, when considering traditional bank loans, to explore these new possibilities and leverage them to foster their projects and ideas.

Yiannis Georgoulas, a seasoned strategy and business consultant, contributes to this perspective.

[This article was translated from its Greek original]

TAGS
Cyprus  |  technology  |  finance  |  digital

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