Hyun-Song Shin, head of research at the Bank for International Settlements (BIS), issued a news release last week, stating that a shift in the monetary and financial system is imminent, carrying profound implications for the economy and society as a whole.
Shin emphasizes the magnitude of this impending transformation, which is expected to permeate across industries and institutions.
"We are at the cusp of another major leap in the monetary and financial system, which will have far-reaching consequences for the economy and society at large," Shin said.
According to a report issued June 20 by the Bank for International Settlements, the global financial system could experience significant improvements through the adoption of a groundbreaking financial infrastructure.
This innovative system would leverage "tokenised money" and assets on a programmable platform, expanding the range of economic arrangements and bolstering the capabilities of monetary and financial infrastructures.
"Bringing together central bank money, commercial money, and different assets on the same platform, all tokenised and interacting, opens up a whole new range of possibilities," Shin said. "This would be a game-changer in how we think about money and how transactions take place."
"The benefits would be limited only by the ingenuity of the public and private partners who innovate on the platform," he added. "The gains are not just incremental improvements. They address, in a more fundamental way, the incentive and informational problems that have stood in the way of better economic arrangements."