Tokenized Fiat Currencies Are on the Horizon. We believed that the major reserve and trade currencies of the world, would become digital currencies. Today we see sovereign currencies being tokenized, and we realize that global money tokens are on the horizon.
The world is headed toward a system of cheap, instant monetary transactions with traditional, fiat money — regardless of which countries happen to launch digital fiat money. Moreover, this will be a radical change in the way that payment systems, the monetary system and economic interactions at large will work. Global money tokens, backed by baskets of reserve currencies, will emerge and become the preferred monetary model.
There are some detrimental factors preventing immediate progress, including issues such as nationalism and trade conflicts.
Many countries are already on the blockchain bandwagon; however there is no global consensus yet, if any individual project is implemented, it would mark a local tokenized fiat currency and a local blockchain-based payments system.
Our project’s goal, is to create a tokenized blockchain-based solution to global economy, targeting global M0 money supply.
What is “Asset Tokenization”?
Our world is full of untapped real-world assets. From private equity, real estate, gold reserves, fine art to agriculture, tangible items have been difficult to subdivide or physically transfer. Investors have manually traded these assets on paper, often through layers of intermediaries, which is slow, complicated and expensive. These trades are also more difficult to track due to the regulatory nature of paper transactions, especially when it involves cross-border legislation.
Asset tokenization is the process of converting ownership rights in a particular asset into a digital token on a blockchain. These can include unique hash values which represent physical assets, financial instruments, real estate, equity, bonds, fund units, etc…
Tokenization of real-world assets will enable new markets by decreasing barriers and frictions to information exchange and trade.
By switching to a digital token system, asset owners and investors can create new efficiencies like making assets more liquid by automating what was previously a cumbersome, manual process — while retaining the real-world characteristics of the underlying asset itself.
Even in its earliest stages, blockchain technology is disrupting how people are envisioning business and transactions. Cryptographic tokens and blockchain-based economics are leading as the most common models being implemented by the technology. Tokens are digital representations of assets. Native cryptocurrencies, such as Bitcoin or Ether, are tokens.
However, modern blockchain-based applications usually implement their own tokens on top of blockchains, in the form of extended application logic or smart contracts. This higher-level abstraction provides more control over the token’s key parameters and functionalities and allows for additional business logic to be incorporated.