Brazil’s Central Bank Highlights Tokenization Potential to IMF and World Bank

Brazil’s central bank supports tokenization and “open finance” as key elements of the future financial system. In a panel report for the International Monetary Fund and the World Bank, the bank’s president, Roberto Campos Neto, said that people underestimated the intersection between the two and believed that tokenization allows programmable payments and broad open finance to be combined as building blocks, “exploring the ability to build this financial market in a single environment.” Campos Neto emphasized the relevance of tokenization to the concept of bank balance sheets and operational efficiency, and said that banks will gradually move from viewing balance sheets based on accounts to viewing them based on “tokens”, which will greatly improve efficiency and productivity. Tokens are more conducive to banks managing risks, managing collateral and financing. (Bitcoin.com)