Tokenization is poised to revolutionize the digital economy in the years ahead, contingent upon global governments and regulators adapting to this transformative wave.

At the 2024 London Blockchain Conference, Dimitrios Psarrakis, co-founder of ValueVerse digital finance strategy group, curated an esteemed panel titled “Navigating the Digital Horizon – Unveiling Government and Legal Frameworks and Real-World Applications of Digital Assets and Tokenization.” The panel featured notable experts including financial cryptographer Ian Grigg from the Peer For Peer Foundation, Nikhil Vadgama, director at DLT Science Foundation, David Almirol, Undersecretary at the Dept. of Information and Communications Technology (DICT) of the Philippines, and Max Bernt, Managing Director, Europe at TaxBit.

Psarrakis commenced the discussion by reflecting on his involvement in the sector since 2016 and his quest to enhance financial systems’ intelligence. He highlighted his contribution to the European Parliament’s blockchain resolution, addressing queries about the value proposition of tokenization, its economic implications, and potential impacts on business models.

Vadgama underscored that tokenization eliminates intermediaries, facilitates direct connections, enables smart contracts, and ensures immutability, asserting these as critical technological advantages transferred through tokenization.

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Regarding the penetration of tokenization, Vadgama pointed to notable use cases in the legacy financial sector, exemplified by stablecoins like USDT (Tether) and USDC (Circle), which enable seamless value transfers compared to traditional financial systems burdened with numerous frictions.

Grigg expanded on the benefits of tokenization beyond cost reduction, recounting a past venture where he tokenized internal currency to settle significant debts. He emphasized how digital tokens streamlined accounting and gained preference over fiat obligations among creditors, illustrating the intrinsic value of efficient accounting systems.

Discussing government perspectives, Almirol shared insights from the Philippines’ initiatives in blockchain adoption, notably integrating tokenized solutions into the national identity system through the eGov Super App. He stressed the government’s role in supporting such innovations to enhance efficiency and transparency across public services.

Acknowledging bureaucratic challenges, Almirol critiqued governmental inertia towards embracing emerging technologies like AI and blockchain, contrasting it with the private sector’s agility in tech adoption.

Psarrakis echoed concerns about governments’ slow adaptation to blockchain’s potential for enhancing transparency in areas such as digital identity, compliance, taxation, and anti-money laundering efforts, citing the need for a proactive regulatory framework.

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Bernt supported Almirol’s call for showcasing the benefits of tokenization to governments, noting varying regional approaches within Europe but a global trend towards establishing legal frameworks conducive to tokenized assets.

Grigg emphasized the necessity of regulatory clarity and the role of established legal mechanisms in facilitating widespread tokenization, underscoring the importance of contracts and trust structures in securing real-world assets digitally.

Vadgama lamented governmental silos hindering innovation and advocated for streamlined regulatory processes to capitalize on tokenization’s potential across diverse sectors beyond financial instruments.

Looking ahead, Vadgama envisioned future applications of tokenization extending to real estate, intellectual property, and commodities, drawing from decentralized finance (DeFi) models to enhance liquidity provision.

Almirol urged a focused approach to solving specific issues with tokenization, akin to nurturing a child with gradual steps towards broader implementation, emphasizing practicality and tangible benefits as catalysts for sustained growth in the tokenized economy.

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Source: coingeek.com

The post Tokenizing real-world assets: Start small, solve problems, drink milk appeared first on HIPTHER Alerts.

The highly anticipated launch of bitcoin exchange traded funds (ETFs) finally occurred in January, with financial advisors gradually beginning to incorporate them into their strategies, according to Samara Cohen from BlackRock.

Currently, approximately 80% of bitcoin ETF purchases are believed to originate from “self-directed investors who independently allocate funds, often through online brokerage accounts,” Cohen noted during her speech at the Coinbase State of Crypto Summit in New York City. One of the funds introduced earlier this year was the iShares Bitcoin Trust (IBIT).

Cohen, who serves as BlackRock’s chief investment officer for ETF and index investments, highlighted that while hedge funds and brokerages have also shown interest, registered investment advisors have approached the new products with more caution.

Recently, CNBC surveyed its Advisor Council to understand their reservations about these new products. Reasons for caution ranged from bitcoin’s well-known price volatility to its status as a relatively new asset class lacking an established track record. Concerns also included regulatory compliance and the cryptocurrency’s history of fraud and scandals.

“It’s fair to say they are cautious – it’s their responsibility,” Cohen commented on the advisors’ skepticism. “Investment advisors are fiduciaries to their clients,” she added. “With bitcoin’s history of extreme price volatility, advisors are currently engaged in portfolio construction, rigorous risk analysis, and due diligence.”

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Cohen sees bitcoin ETFs as a pivotal link between cryptocurrency and traditional finance, especially appealing to investors looking to allocate funds to bitcoin without navigating separate financial ecosystems. She noted that prior to ETFs, existing avenues into crypto were inadequate for many investors’ needs.

Alesia Haas, CFO of Coinbase, described bitcoin’s adoption as a gradual process, a sentiment echoed throughout the conference sessions. Blue Macellari, head of digital assets strategy at T. Rowe Price, highlighted the cautious yet evolving approach to integrating bitcoin into portfolios, noting that for many, adopting cryptocurrencies represents a significant shift in investment strategy that requires time and careful consideration.

Source: cnbc.com

The post Advisors ‘wary’ of bitcoin ETFs are on a slow adoption journey, says BlackRock exec appeared first on HIPTHER Alerts.

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Transforming Procurement with Blockchain Technology

Procurement, essential to any organization, faces significant challenges with traditional, manual, paper-based systems. These methods are error-prone, slow, and lack transparency, complicating order tracking and inventory management, and increasing fraud risk and costs.

Blockchain technology offers a transformative solution by enhancing supply chain traceability. Every transaction is recorded on an immutable ledger, providing unmatched visibility into the origin, authenticity, and condition of products, thus boosting transparency and accountability.

Smart contracts, powered by blockchain, further optimize procurement by automating processes and reducing manual intervention. They trigger automatic payments upon meeting predefined conditions, accelerating transactions, reducing intermediary reliance, and lowering costs. These contracts also manage complex agreements, ensuring compliance and resolving disputes efficiently.

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Additionally, decentralized marketplaces created by blockchain provide a secure platform for direct buyer-supplier interactions, promoting fair competition, and enabling informed decision-making. Smart contracts automate various tasks like generating purchase orders, verifying supplier credentials, tracking shipments, and initiating payments, thereby minimizing errors and

Enhancing Procurement with Blockchain Technology

Procurement is critical to any organization but often faces challenges due to traditional, manual, and paper-based systems. These methods are prone to errors, delays, and a lack of visibility, complicating order tracking and inventory management, and increasing fraud risk and costs.

Blockchain technology offers a revolutionary approach by enhancing supply chain traceability. Every transaction is recorded on an immutable ledger, providing unmatched visibility into the origin, authenticity, and condition of products, thus boosting transparency and accountability.

Smart contracts, powered by blockchain, further optimize procurement by automating processes and reducing manual intervention. They trigger automatic payments upon meeting predefined conditions, accelerating transactions, reducing intermediary reliance, and lowering costs. These contracts also manage complex agreements, ensuring compliance and resolving disputes efficiently.

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Source: techiexpert.com

The post BLOCKCHAIN Adopting Blockchain and Smart Contracts to Overcome Procurement Challenges appeared first on HIPTHER Alerts.