Denis Beau noted that currently tokenized assets make up only a small percentage of the total volume of financial assets, but the situation may soon change. If the central bank does not adapt its digital currency to these conditions and does not allow it to be used for settlements with tokenized assets, then market participants may find a convenient alternative, namely stablecoins.
Bo is confident that asset tokenization using distributed ledger technology (DLT) will allow for more transparent tracking of trade transactions. However, the successful implementation of this idea requires the support of central banks and legislators who will create the necessary regulations. Tokenization will simplify and speed up the trading of digitized assets, and will also open up new opportunities, such as fractional ownership of assets.
“We can stimulate the development of innovative projects by creating a system of trust. Tokenization can only be implemented if regulation is constructive and not just reactive to crises. As for state-owned cryptocurrencies, they will improve cross-border payments, and this should be a priority for central banks,” said the Deputy Governor of the French Central Bank.
Recently, the French central bank, together with other central banks and the Bank for International Settlements (BIS), tested wholesale CBDCs for cross-border trade and settlements. Previously, Denis Beau called on legislators to develop clear legal norms regulating the decentralized finance (DeFi) industry.
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