Treasury Department Says Bitcoin (BTC) Being Used As ‘Digital Gold,’ Touts Benefits of Tokenization

Recognizing the advantages of asset tokenization, the US Treasury Division compares Bitcoin (BTC) to gold.

In a brand new report, the Treasury Division names the highest cryptocurrency as measured by market capitalization, a retailer of worth boosted by speculators.

“The use case of digital belongings continues to evolve, however curiosity has developed alongside two fundamental strains. The first use case for Bitcoin seems to be as a retailer of worth, also referred to as “digital gold” in a decentralized finance (DeFi) world; speculative curiosity seems to have performed a distinguished position within the development of digital tokens to this point.”

In accordance with the Treasury Division, real-world asset tokenization – which permits buyers to characterize their bodily belongings with tokens – has the potential to alter the monetary panorama and disrupt buying and selling in conventional markets.

“Tokenization has the potential to unlock the advantages of programmable, interoperable ledgers for a broader vary of legacy monetary belongings… The advantages of tokenization lengthen nicely past and are unbiased of native crypto belongings like Bitcoin, in addition to the general public, permissionless blockchain have popularized the expertise of those belongings.”

The report additionally says that among the key advantages of tokenization embody straightforward fractional possession of digitized belongings, streamlined composition of bundled belongings, and automatic executions utilizing good contracts.

Nevertheless, the company notes that lawmakers will ultimately want to determine tips for tokenized belongings.

“The authorized and regulatory panorama might want to evolve alongside progress within the tokenization of legacy belongings.”

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