International Monetary Fund: Tokenization Improves Financial Efficiency but Introduces New Risks and May Weaken Emerging Market Monetary Sovereignty

Odaily reported that the IMF released a 23-page report on Thursday stating that tokenization has the potential to eliminate financial frictions and enhance transparency, but its net effect on financial stability remains uncertain. The report noted that atomic settlement and increased transparency reduce certain traditional risks, but speed and automation introduce new risks. Stress events in tokenized markets may unfold more rapidly than in traditional systems, leaving less time for human intervention.

The IMF also stated that tokenization provides emerging markets with opportunities to accelerate cross-border payments and financial inclusion, but it also brings risks such as increased volatility of capital flows, rapid currency substitution, and weakened monetary sovereignty. In addition, the report pointed out that if there is a lack of legal clarity on ownership records and settlement finality, tokenized markets may face fragmentation and marginalization.

Currently, the total value of on-chain tokenized real-world assets (excluding stablecoins) exceeds $27.6 billion. Boston Consulting Group estimated in 2022 that the tokenization market could reach $16 trillion by 2030, while McKinsey provided a more conservative forecast of $2 trillion in 2024.