CoinDesk, citing a report from Bernstein Asset Management, stated that assets worth $5 trillion could be tokenized within the next five years, including 2% of the global money supply.
According to the company’s analysts, the Chinese CBDC (Central Bank Digital Currency) program will lead to a significant increase in the volume of stablecoins and central bank digital currencies.
According to their claims, the income-generating opportunities in “decentralized markets” will pose serious competition to bank deposits as an investment or savings instrument.
So, what is tokenization? Essentially, it is the “replacement of card data with a unique 16-digit number. In other words, it is a digital fingerprint of the card (token). It can be linked to a mobile phone and used to make purchases with a phone, smartwatch, or even a ring.”