Why are cryptocurrencies and asset tokenization critical to traditional finance? | Roast Star Selection
LoveCity
2021-01-30 11:55
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Cryptocurrencies and asset tokenization are important to the development of the traditional financial sector.

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What are cryptocurrencies and asset tokenization?

What exactly are cryptocurrencies? As the name suggests, they are encrypted assets, often referred to as cryptocurrencies, a non-physical asset that can be traded as a specific asset. Cryptocurrencies can be traded, stored and accessed, and can be traded on the Internet. Conduct peer-to-peer transactions without going through third-party intermediaries.

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Benefits of a digital token system for financial functions

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Asset tokenization will provide a more liquid secondary market for some large assets

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lower transaction fees

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Relying on the characteristics of the blockchain itself, transaction transparency will be significantly improved

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Cryptocurrencies and asset tokenization still need breakthroughs

Given that the financial industry is strictly regulated, tokenization needs to be regulated before it can be widely accepted in the traditional financial field, and the most important point is that cryptocurrencies will be regulated by the same regulations as the current financial field, because these regulations It exists mostly to protect investors. Therefore, cryptocurrencies and asset tokens will only be widely accepted if they are incorporated under existing financial laws and regulations.

Cryptocurrency and asset tokenization are very important to the development of the traditional financial field. With this technology, on the one hand, enterprises can quickly gain better competition by taking advantage of the transparency, liquidity and availability provided by asset tokenization. On the other hand, investors can trade in a more transparent trading market with lower thresholds and lower transaction fees. It must be a win-win result for both enterprises and investors.

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