• UK Finance is urging the British government to adopt tokenization as an efficient way to lower costs, reduce risk and offer wider access.
• Singapore’s Project Guardian is a good example of a successful collaboration between the private sector and government.
• UK Finance has suggested a roadmap for the U.K. to position itself as a global tokenization market leader, including elements such as innovation, interoperability and global standards leadership.
Gaining Speed on Tokenization Vital for UK’s Financial Future
UK Finance, an advocacy group in the United Kingdom, is urging the British government to encourage securities tokenization. The market is small now but could have a big impact if the country acts quickly and positions itself as a global leader in this technology. In order for the U.K. to remain competitive with other jurisdictions that have already made progress on this front, it must act fast in order to make up lost ground and stay ahead of its peers.
Project Guardian: A Successful Collaboration
The report co-authored by UK Finance and consulting firm Oliver Wyman stated that not only are there advantages associated with tokenization such as lower costs, lower risk and wider access; but that “it can transform the financial system” which should be centered around Britain. As an example of successful collaboration between the private sector and government, Singapore’s Project Guardian was held up as evidence of how governments can explore ways to develop use cases for tokenized assets while maintaining oversight over them at all times.
Legal Foundation in Place
The report also noted that although some adaptation may be necessary, Britain already has a legal foundation that is “fit for purpose” when it comes to dealing with securities tokenization – meaning it does not need to start from scratch or go through long processes when introducing new regulations or laws related to this technology.
Roadmap for Global Leadership
In order for Britain to remain competitive in terms of being at the forefront of this technology’s development, UK Finance has provided a detailed roadmap outlining steps that need to be taken in order reach global leadership status within five years time – including elements such as innovation, interoperability and global standards leadership initiatives that need implementation sooner rather than later in order for these goals become achievable within their desired timeline.
Conclusion
It is clear from this report that despite some initial delays due other countries taking advantage of their headstart with tokenizing securities; Britain still stands at chance at becoming one of leading nations when it comes this new technology – so long as they take swift action towards implementing their plans outlined by UK Finance during their research study into potential use cases and applications related securities tokens.