Currently, there are thousands of unique digital currencies circulating worldwide and the number of Blockchain wallets has been growing steadily. Central banks across the world are researching and experimenting with specific use cases for blockchain and DLT, exploring where they can potentially unlock new possibilities with central bank digital currencies (CBDCs) and improve inefficient processes.
The incremental pace at which this area of innovation is evolving brings new possibilities and the potential to improve inefficient processes whilst widening financial inclusion, fulfilling an otherwise unmet demand, rooting out illicit finance, delivering faster, cheaper cross-border transactions and distribution, as well as broadening competition.
These novel and remarkable developments, coupled with the emergence and spread of tokenisation, are ushering in a new wave of opportunities, allowing for the creation of a more inclusive and efficient financial system, as well as a new line of professions and services. Markets based on tokenized assets have the potential for a cheaper, more agile and secure infrastructure compared to traditional markets, higher levels of automation of the asset lifecycle, more transparency and greater accessibility.
This represents a remarkable shift towards decentralisation and the creation of innovative business models. With the traditional market infrastructure now steadily adapting to the new ‘token economy’, engagement and open dialogue will be key to answering critical issues, harnessing change, planning for the future and adapting to the realities that will thrive.
The Digital Currencies Governance Group aims at informing political representatives, European institutions, national parliaments, special interest groups and the general public of the numerous revolutionary innovations that digital currencies bring to the financial world. Against the backdrop of a thriving ecosystem, the broader potential and the secure, reliable, easy-to-use, low-cost borderless nature of digital currencies make it an incredibly attractive prospect.
Innovation in the digital assets space is moving at a fast pace. The growth and use of financial transactions on Distributed Ledger Technology (DLT) are likely to continue accelerating and fundamentally transform the payments industry both domestically and internationally within the coming years. There will be substantial gains for those regulatory systems that adopt and provide the most successful regulatory regimes and infrastructure.