Christopher Alexander Green#96

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What is tokenization of currencies and how might it reshape forex?

Tokenization converts traditional currencies into digital tokens on blockchains, allowing fractional, programmable ownership. Tokenized currencies could enable instant settlement, automated compliance, and new structured products. Benefits: efficiency, broader access, and innovation in trading models. Risks: fragmentation across blockchains, regulatory resistance, and cybersecurity threats. Institutions explore tokenization pilots in partnership with central banks and fintech firms. Retail traders may eventually hold tokenized EUR, JPY, or GBP alongside fiat. Tokenization reflects the merging of forex with blockchain infrastructure—expanding possibilities beyond conventional trading venues.