The viability of tokenised assets as a universal payment method

financialexpress.com:

By Ashish Khandelwal

Picture this – Billion-dollar worth tokenized real world assets to redefine the essence of money.

A forward-looking statement for sure.

But envision a society where everyday transactions, from purchasing groceries to acquiring the latest gadgets, could be conducted using shares in mutual funds or pieces of fine art, sidestepping the conventional reliance on cash or digital fiat currencies.

This isn’t mere speculation; it is a tangible possibility.

The allure of this emerging reality lies not only in its novel approach to transactions but also in the profound implications it holds for regulatory frameworks, economic stability, and global financial integration.

By anchoring the concept of currency to a diverse basket of real-world assets, the model offers a more concrete basis for regulators to monitor and manage monetary policies, potentially enhancing transparency, controlling inflation, and mitigating systemic risks more effectively.

Moreover, this hybrid approach to utilizing tokenized assets as a form of money offers several advantages over the current fiat mechanism. Firstly, it introduces a diversified and tangible backing for currency, reducing the susceptibility to inflationary pressures that fiat currencies often face.

Secondly, by leveraging blockchain technology, transactions can become more transparent, secure, and efficient compared to traditional banking systems. Additionally, the decentralized nature of blockchain reduces reliance on central authorities, potentially mitigating risks associated with government mismanagement or manipulation of currency.

Finally, the global interoperability of tokenized assets can facilitate seamless cross-border transactions, overcoming the