Tokenization of assets worth $5 trillion is expected to occur | Crypto Update HQ

Tokenization of assets worth $5 trillion is expected to occur in the next five years, representing 2% of the global money supply, according to a report by asset management company Bernstein, as reported by CoinDesk.

We anticipate a significant increase in the circulation of stablecoins and central bank digital currencies (CBDCs) due to the Chinese CBDC program, noted Gautam Chhugani, an analyst at the firm.

Chhugani also highlighted that income farming opportunities in decentralized markets will compete with traditional bank deposits as an investment or savings instrument.

However, Chhugani acknowledged the challenge of regulatory uncertainty. He emphasized that the success of the tokenization process relies on policymakers recognizing the advantages of blockchain and understanding the role of crypto tokens in decentralized systems.

Otherwise, "regulatory hurdles will undermine the benefits of tokenization."

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