The Davos "Tokenization" Debate: Technological Dividends Anticipated, Sovereignty and Regulation More Challenging

Odaily News At a time when AI has almost "dominated the screens" of the entire World Economic Forum 2026 Annual Meeting, virtual currencies, once highly popular in Davos, have also returned to the spotlight. Representatives from traditional banks and regulatory agencies, along with crypto industry leaders, engaged in a head-on, in-depth debate on whether tokenization is on the eve of an explosion, how digital currencies are reshaping sovereign boundaries, and the foundational trust of the financial system:

1. Brian Armstrong, CEO of Coinbase, pointed out that tokenization solves the efficiency challenges of the financial system, enabling real-time settlement and reducing costs, but its most core power lies in the "democratization of investment access."

2. Valérie Urbain, CEO of Euroclear, views tokenization as an "evolution of financial markets and securities" that could allow issuers to shorten issuance cycles, reduce issuance costs, and also help markets "reach a broader range of investors," playing a role in "financial inclusion."

3. François Villeroy de Galhau, Governor of the Banque de France, believes that increasing investment opportunities must be accompanied by a simultaneous improvement in financial literacy; otherwise, tokenization could evolve into a disaster.

4. Bill Winters, Group Chief Executive of Standard Chartered Bank, stated frankly that while achieving tokenization for the vast majority of transactions by 2028 might be slightly optimistic, the direction that "the vast majority of assets will ultimately be settled digitally" is already irreversible.

5. Brad Garlinghouse, CEO of Ripple, quoted former Federal Reserve Chairman Ben Bernanke, saying that governments will not relinquish control over the money supply. Ripple's current strategy leans more towards building bridges between traditional finance and decentralized finance, rather than challenging sovereignty itself. (Caixin)