A Tokenized Financial Ecosystem
14 May 2020 — With the onset of the first CBDC by China, this is definitely a big step forward towards growth of global #tokenized financial ecosystem.
China is currently in pole position for the development of national digital currencies. With recent news of China trialling its digital yuan, its 6 years of hard work has finally paid off. David Pan from CoinDesk, reported that this has huge implications both for China’s economy and perhaps international politics.
Ting Peng from Cointelegraph recently reported that the digital yuan is backed by China’s credit, similar to an electronic version of the renminbi. No need to imagine how this new architecture for money will work. This is the real thing although how it eventually pans out remain to be seen.
According to George Calle and Daniel Eidan from the recent R3 report, the key to any viable CBDC will be in activating the comparative advantages of the diverse payments value chain, and thus central banks will play a critical role in orchestrating this ecosystem.
The emergence of tokens i.e. tokenized bond, equity or fractionalized piece of real estate will allow central banks to provide settlement solutions through CBDC within a #tokenized financial market infrastructure. S: https://lnkd.in/g8xQ-r7