European initiative calls for the tokenization of Europe
20 January 2023
A European consortium including stakeholders from Liechtenstein has presented its plan to achieve a tokenized European economy by 2025. Digital assets with transferable digital rights have the potential to create new business models across the entire economy.
Europe should become a tokenized economy. The path to achieving this by 2025 has now been outlined by a consortium of leading European experts under the leadership of the Association of German Banks, the European Commission and Roland Berger in a first progress report. The consortium includes 20 member organizations from France, Germany, Portugal, Italy, Sweden and Spain. Moreover, several stakeholders from Liechtenstein, namely the Governmental Office for Financial Innovation and Digitalization, the Liechtenstein Bankers Association, the National Road Office, VP Bank and the Blockchain Founders Group, are also active within the consortium.
As the Liechtenstein Bankers Association (LBA) writes in a press release, this initiative is of particular importance to Liechtenstein, as the principality assumed a “pioneering role” following the adoption of the Liechtenstein Blockchain Law which entered into force January 1, 2020. The tokenization of the economy has the potential to revolutionize industries and generate brand-new business models across the economy as a whole. This was also highlighted by the Governmental Office for Financial Innovation and Digitalization in a press release of its own.
The significance of tokenisation for Europe – i.e. the issuance of a digital representation of a real asset in the form of a digital, transferable token on a decentralized distributed ledger infrastructure – is “generally underestimated”, according to the official explanation published by the consortium.
As such, this gives rise to the need to understand how the new technology creates potential for new services and business models across Europe. On account of the fact that awareness of this is not yet widespread, knowledge and expertise must be improved in both the public and private sectors.