Over the next 5 years, companies and governments will transfer about 2% of the money supply to the blockchain using stablecoins and CBDCs, which is about $3 trillion. This is what Bernstein experts write, who consider digital coins to be a more convenient and modern form of currency circulation.
Bernstein estimates that the volume of tokenization opportunities is $3-5 trillion. This process will affect not only money, but also stocks, real estate, and other assets and liabilities. Although the crypto community and regulators still have questions about this technology, and the incompatibility of networks causes difficulties in using coins, about $1 billion has already been tokenized.
Tokenization is the replacement of real values with coins that reflect them. The cost of the coin will be provided by the existing object. This method of circulation of currency, documents, etc. is considered more secure, since records are stored in a decentralized network.”Over the next five years, we expect an increase in the number of stablecoins and CBDC tokens in circulation, supported by the Chinese CBDC program, “the analysts wrote.” Stablecoins and CBDC tokens, combined with increased profitability in decentralized markets, will compete with bank deposits as an investment or savings tool,” the foreign company added.
However, Bernstein analysts do not yet see enough conditions for mass tokenization, as this process will only become possible after an objective assessment. According to experts, until politicians determine the real value of decentralized networks and do not specify legislation, blockchain technology will not become part of the global economy and public life.