Will asset tokenization replace money?
The financial system, both national and international, is just an infrastructure that is used to exchange values. The tool for this exchange is money. Within the state, this is the national currency. And if we are talking about the exchange of values between representatives of different states, then the means of exchange are various currencies to which we have already become accustomed.
The emergence of blockchain technology is a new stage in the evolution of the financial system, in which the means of exchanging values has changed. Today, asset tokenization is a way to digitize real-world assets so that exchange in the digital plane occurs quickly, legally and safely.
Will the tokenization process be able to replace traditional payment services and banking operations? At the current stage, this is practically unrealistic. But the mutual integration of tokenization and the traditional financial system is inevitable.
What is the reason for this? The fact is that digital assets will be more transparent, tokenization will open the possibility of exchanging rights to various assets in the legal field without physically transferring it. This will speed up business, there will be no need for unnecessary expenses, trust and reputation will also be digitized and, therefore, investments will become more attractive and safe. This is why the tokenized asset market is developing so rapidly.