According to experts at the Bank for International Settlements (BIS), tokenization based on CBDCs is the future of the global financial system, and cryptocurrencies have been a misguided offshoot of this process.
In the organization's Annual Economic Report, BIS specialists have emphasized that the previous advancement in the development of monetary relations was due to the appearance of financial instruments in the form of book entries on ledgers. With the advent of the electronic age, they acquired digital form, giving impetus to the "dematerialization" of money.
According to the paper:
"Today, the monetary system stands at the cusp of another major leap. Following dematerialization and digitalization, the key development is tokenization."
According to experts, cryptocurrencies "offered a glimpse of tokenization's promise," but they themselves are a flawed system and cannot assume the role of the money of the future.
They have added:
"Not only is crypto self-referential, with little contact with the real world, it also lacks the anchor of the trust in money provided by the central bank. Stablecoins have mushroomed to fill this vacuum."