Tokenizing assets on blockchain may elevate systemic risks, warns Bank of England
The Bank of England’s financial stability report highlights the potential risks and increasing interest in asset tokenization within the financial sector, underscoring the need for global regulatory coordination. The report notes an increasing positivity among banks towards leveraging crypto technologies, including programmable ledgers and smart contracts, for the tokenization of money and real-world assets. Sarah Breeden sets out the key findings from our Financial Stability Report, which shows that the outlook for global economic growth remains subdued. However UK banks remain resilient and strong enough to continue supporting households and businesses. https://t.co/oZoGXYozgq pic.twitter.com/vmc8Gv3Qny — Bank of England (@bankofengland) December 6, 2023 You might also like: India-led G20 proposes global crypto regulatory framework Tokenization, defined as issuing a digital asset representation, is rapidly gaining traction in the crypto ecosystem and is pro...