The World Federation of Exchanges (WFE) has published a paper exploring the potential impact of central bank digital currency (CBDC) on the adoption of tokenization. The WFE is an industry body representing the world’s largest stock exchanges and clearing houses, including central counterparties (CCPs). These are amongst the organizations that will be most heavily affected by a shift to tokenization. One of its members, Switzerland’s SIX Digital Exchange (SDX), already supports a pilot wCBDC.
“The Swiss experience demonstrates the utility of efficient CBDCs to the success of tokenisation, due to the enhanced trust, liquidity, financial inclusion and diversification associated with CBDCs,” said Richard Metcalfe, Head of Regulatory Affairs at the World Federation of Exchanges. “Other central banks and policymakers should take heed of this example to generate the economic growth associated with tokenisation.”
A WFE report last year on tokenization seemed less than keen on the topic, although this one is more balanced.
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