How do we arrive at a token economy for Europe?

by | Mar 29, 2023 | news, Tokenization | 0 comments

In his new article for BeInCrypto, EBA Senior Policy Fellow, Erwin Voloder discusses the what, how and why of tokenisation. What does tokenisation mean in practice? And why does it matter? Besides explaining the basics like different types of tokens and tokenisation the article dicusses the potential of a tokenized economy and the key take-aways from the Tokenise Europe 2025 Initiative that explored the key drivers of the token economy in Europe.

Blockchain based vs. non-blockchain based tokenisation

Not only are there different types of tokens, but also different types of tokenisation. The article explains the basics of both blockchain based and non-blockchain or vault and vaultless tokenisation, and gives an overview of the most important blockchain based token types and their use cases.

Tokenise Europe: the road ahead

The most important question however discussed in the article is the transformational potential of tokenisation to help create new business models for “industry 4.0” as well as the requirements for a scuccessful token economy. Erwin describes the key takeaways from the Tokenise Europe 2025 initiative which was launchd by the European Commission and Association of German Banks (BdB) that explored the key drivers of the token economy in Europe, and the remaining work that needs to be done both at the private and public level to ensure education, innovation and adoption all develop in lockstep.

Read the full article here: