Opinion Tokenization is the Inevitable Future of the Global Financial System
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Panelists Tim Bailey, Vice President of Global Business & Operations at Red Date Technology, William Quigley, a cryptocurrency and blockchain investor and co-founder of Wax and Tether, and Selva Ozelli, were invited to participate in the Eurasia Blockchain Summit and discuss the “Future of Tokenization.”
Tim Bailey noted that Red Date Technology is at the forefront of a new global digital infrastructure for digital payments and central bank digital currencies (CBDCs). Currently, 134 countries and currency unions, representing 98% of global GDP, are exploring the possibility of a CBDC that will tokenize the global financial and banking systems. The Bahamas, Jamaica, and Nigeria have already fully launched a CBDC.
Red Date Technology is the technical architect of various products, including a blockchain-based service network (BSN) and a universal digital payments network (UDPN), a global messaging network supporting government-regulated digital currency systems. Bailey also mentioned the successful launch of an All-in-One Digital Currency Sandbox by UDPN, which empowers central and commercial banks to test and build innovative use cases with all forms of regulated digital currencies in a real environment.
William Quigley shared his realization of the revolutionary potential of tokenization when he co-founded Tether, the world’s first and most traded stablecoin. He emphasized the transformative impact of tokenization on digital asset trading, including NFTs, as well as its potential to represent a wide range of assets digitally, such as stocks, bonds, and other assets. Quigley also highlighted the growth potential of utility NFTs, collectible NFTs, and web 3 gaming NFTs.
Both Bailey and Quigley agreed that the tokenization of the global financial system is the future of financial markets. They also noted the collaborative efforts of world regulators in designing a legal framework for digital assets.
In the US, the digital asset industry is encouraging House leaders to support The Financial Innovation and Technology (FIT) for the 21st Century Act (HR 4763) legislation, which aims to establish a US regulatory regime for digital assets. The bill includes provisions for the regulation of stablecoins and protection for whistleblowers, as well as an anti-CBDC bill (HR 1122) seeking to prohibit the Federal Reserve from issuing digital currency to consumers.
Additionally, the IRS has issued a draft Form 1099-DA, which will be used by digital asset brokers to report digital asset transactions. The draft Form 1099-DA data includes the digital asset acquisition date, cost basis, transaction date and time, sales proceeds, and gross proceeds of all digital asset transactions.
Overall, the global trend towards tokenization and the regulatory efforts being made to accommodate this shift indicate a significant transformation in the digital asset landscape.
