The Ambition of the Bank for International Settlements: Building a Global “Finternet”
The Bank for International Settlements (BIS) has recently released a fascinating proposal to establish a global financial network called “Finternet” using distributed ledger technology (DLT).
The realization of this vision could potentially change the foundational infrastructure of global financial transactions, further promoting the digitization and globalization of financial services, allowing financial institutions from different countries to seamlessly engage in cross-border transactions on a shared platform.
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Objective: Facilitating Unified Cross-Border Tokenized Asset Trading
The BIS’s new proposal aims to facilitate cross-border transactions, particularly in the realm of tokenized assets. Through a unified distributed ledger, countries can conveniently exchange various types of assets, including digital versions of stocks, bonds, and other financial instruments.
This not only improves the efficiency and transparency of transactions but also reduces operational costs and the complexity of cross-border trades. This platform will support the flow of various currencies and assets, thus initiating a more vibrant and diverse international financial market.
Embracing Tokenization! SWIFT Searches for Its Future Position
In the wave of this transformation, the global financial communication network, SWIFT, is also seeking its own position. SWIFT proposes that in the future tokenized financial world, it can serve as a hub connecting various distributed ledgers to ensure secure and efficient transactions.
This role for SWIFT will provide it with a strategic position in its future development in the global financial market, especially in handling cross-border payments and asset transfers.
IMF: Facilitating Economic Cooperation Among Countries
The International Monetary Fund (IMF) has also expressed great interest in this innovation. The IMF believes that by establishing a single distributed ledger, a new category of cross-border payment platform can be created. Such a platform will greatly enhance the efficiency of the global payment system, reduce transaction costs, and increase the speed of fund transfers. It emphasizes that such a system will contribute to strengthening global economic connectivity, promoting economic cooperation and development among countries.
Does Finternet Represent the Future of the Global Economy?
The concept of “Finternet” proposed by the Bank for International Settlements could reshape the global financial landscape in the coming years. This innovation is not only a technological breakthrough, but also a significant challenge and opportunity for the existing financial market structure.
If this plan can be successfully implemented, it is expected to bring about a faster, more secure, and transparent global financial transaction environment. However, this also requires extensive international cooperation and adjustment, as well as profound reform of the current regulatory framework. The future path is worth the attention and anticipation of all participants in the financial market.
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Crypto City
Proofreading Editor: Gao Jingyuan