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[BIS Report Highlights The Risks Of Traditional Finance Shifting To Tokenization] According To The Block, The Bank For International Settlements (BIS) Released A Report On Monday Titled "Tokenization In The Context Of Currency And Other Assets: Concepts And Their Impact On Central Banks", Exploring How Tokenization Reshapes The Financial Landscape And Affects The Role Of Central Banks. The Report Emphasizes That Tokenization Can Bring Significant Benefits, Such As Reducing Transaction Costs And Increasing Transaction Speed, Which Has Attracted The Interest Of Institutional Investors; However, These Advantages Are Also Accompanied By Inherent Risks And Challenges. The Report Points Out Several Risks Associated With Tokenization, Including Potential Governance And Legal Framework Issues As Well As Credit, Liquidity, Custody And Operational Risks. These Challenges May Be Different From Those Faced By Traditional Market Infrastructure, So A Comprehensive Assessment By The Central Bank Is Required. The Report Stated: "Central Banks Need To Assess The Trade-offs And Appropriate Balances Between Different Types Of Settlement Assets In Token Arrangements, And Identify, Monitor And Evaluate Tokenized Arrangements That May Require Sound Supervision And Oversight." The BIS Report Highlights The Potential Impact Of Token Arrangements On The Implementation Of Monetary Policy, Especially The Impact On Changes In The Structure Of Regulated Markets And On The Demand For Central Banks Relative To Other Forms Of Currency. This Changing Situation May Affect How Central Banks Operate In The Future. Agustín Carstens, General Manager Of The Bank For International Settlements, Noted That While Tokenization Can Improve The Security And Efficiency Of The Financial System, It Also Brings Economic, Legal And Technical Challenges That Must Be Addressed. The Report Pointed Out That The Legal Risks Of Tokenization May Arise From Unexpected Or Uncertain Application Of The Law
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