Forbes Says Crypto Is Creating New Digital Financial Institutions, Not Replacing Traditional Ones
Summary
- Forbes said digital-asset technology is creating new forms of digital financial institutions rather than replacing traditional financial institutions.
- The outlet said stablecoins are evolving into financial infrastructure, while the market for real-world asset (RWA) tokenization is growing around traditional financial institutions, with reliance on intermediaries also increasing as institutional investors expand their participation.
- Forbes said technology in the crypto industry changes the role of intermediaries rather than removing them, and that the key issue is whether new digital financial intermediaries can deliver services that are more transparent, efficient and verifiable than the existing system.
Forecast Trend Report by Period
Forbes wrote on July 27 that digital-asset technology is creating new types of digital financial institutions rather than replacing traditional ones.
Stablecoins are evolving from crypto tools into financial infrastructure, the outlet said. It added that the market for real-world asset, or RWA, tokenization is also expanding rapidly around traditional financial institutions rather than decentralized communities. As institutional investors broaden their participation in the crypto market, reliance on intermediaries is increasing as well.
Forbes said this does not signal a failure of the crypto industry, but reflects a natural stage in fintech's development. Technology usually reshapes the role of intermediaries instead of eliminating them. The central question, it said, is not whether intermediaries can be removed, but whether new digital financial intermediaries can provide services that are more transparent, efficient and verifiable than the existing system.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.