The General Manager of the Bank for International Settlements proposed the concept of "Finternet" and used tokenization as a tool to solve the shortc

According to a recent paper by Agustin Carstens, General Manager of the Bank for International Settlements (BIS), and Nandan Nilekani, co-founder of Indian company Infosys, the concept of "Financial Internet" (Finternet) has been proposed. This is an interconnected financial system dominated by tokenized assets, aimed at overcoming the shortcomings in current financial asset transactions.

Finternet refers to a series of interconnected systems aimed at integrating many financial functions into one network, reducing the entry barriers for participants. The paper defines Finternet as "multiple interconnected financial ecosystems, like the Internet, designed to place individuals and businesses at the center of their financial lives, enhancing their capabilities."

The core of Finternet is tokenization technology, which allows RWA and financial assets to be represented in a single system managed by smart contracts, enabling operations and transactions that current technology cannot achieve.

The paper points out that tokenization fundamentally reshapes the financial transaction process, as tokens include "value and regulatory information typically recorded in databases." (Bitcoin.com)