Blockchain For ESG And Financial Inclusion
In the latest episode of his YouTube Podcast series, Dinis Guarda interviewed Hirander Misra, Chairman and CEO of GMEX Group. The two discuss key challenges in the current financial markets and the sustainable strategies to meet the ESG goals. Dinis Guarda YouTube channel, a certified, Silver channel, was created to share ideas and people, and help bring in innovative projects and insights for a better future.
Hirander Misra comes from a family of entrepreneurs. As he mentioned to Dinis early in the interview, his interest in financial markets was aroused early in his life, during his school. It was during this time when he started getting to the bottom of the processes, did he “realise that everything behind the scenes was powered by technology”, and that “the real opportunity arises when they both meet.”
Relating his journey of establishing GMEX Group, a company that offers innovative solutions for the creation and operation of electronic exchanges, and security infrastructure, Hirander said that there is a need to balance traditional finance with the latest financial models available. He calls this balance HyFi: Hybrid Finance. “The old and the new need to exist, and need to be interoperable,” he emphasises.
He highlighted that GMEX partnered with Amazon Web services to come up with the microservices version as an adaptive layer to connect this traditional infrastructure with APIs and multiple blockchains.
Blockchain Technology for Finance
As the interview progressed, Dinis provoked Hirander to comment on the evolution of financial markets and the dynamics that exist there. An expert, Hirander said that downturns and upturns are a part of any new technological revolution. Referring to the current crypto winter situations, he explained:
“After a period, things reset. This cyclical trend exists in equity classes and asset classes, and crypto is no exception to that. But I think one of the things that has been through these cycles is that most of the things that happen are when that bubble bursts or there is a reset because it’s the good time without the hype. People really start to look at innovation, and build something meaningful that reaps or rewards in certain years to come.”
He insists that these cycles of downturns are necessary for a sustainable project to thrive. Governance and collaborative efforts, according to him, play a vital role in making technology a tool for the betterment of society. Citing an example, he said:
“The technology, when used wisely, could be a game changer and can help leapfrog with the existing constraints like limited access to banking both on the retail and wholesale side.”
He emphasised the importance of the convergence of technologies, he said financial institutions need an equal degree of access to public blockchains and private ledger-based projects. Citing various use cases from across the globe, he presented a valid case of how blockchain-based smart contracts and other technologies are creating an atmosphere of better financial models.
ESG and carbon neutrality with blockchain
Highlighting the present status of carbon markets, Dinis asked Hirander to explain the efforts that GMEX is making in the area. Hirander expressed his concern over the absence or little automation in carbon markets and carbon registries. He further brought to light the other major concern that exists in the space: no real validation of data.
Speaking about the essence of collaborative efforts, he said:
“If we put our heads together, we can create a multi-hub that’ll benefit 65% of the digital companies. Different cultures and languages on the platform will help reach the maximum percentage of people across the globe. That orchestration and translation are important.”
Concluding the interview, he said:
“With AI and other technologies, businesses and markets become seamless: more like a push than a pull.”
Hirander Misra
CEO – GMEX Group and ZERO13
