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With the advances of DeFi (decentralized finance) and the digitization of various processes from day to day, a new era of the economy is approaching.

For Sven Wagenknecht, editor-in-chief of BTC Echo, the real boom in the adoption of these technologies in the economy, with practical uses, will happen by 2025. However, it is difficult to predict today what exactly this scenario will look like. The statement was made during Wagenknecht’s participation in the CriptoValley Festival 2020

Regarding tokenization, he pointed out that tokens can contain several types of assets. “You can put everything digital in these tokens, like in a container. They can be securities, the right to use a 3D print file, or the digital euro, the ECB (European Central Bank) or Facebook (about the Libra that the social network wants to create)”.

He recalled that all major central banks have plans to tokenize national currencies. And he also cited China as a country in the leadership of this movement. 

More significant control drives the advance of the digital economy

This advance toward virtual money is driven by two factors, in the view of the editor of BTC Echo: government control and advancement of technologies in the day-to-day in general.

 “One (of the factors) is to have more control over financial transactions. And every state wants to have control”, he said. As for the second factor, he stated: “We live in a digital world. In a world of the digital economy, digital money becomes increasingly important. Autonomous machines are getting more important, machines doing business. We have artificial intelligence software doing business. Meanwhile, humans are becoming less important in transactions, not only in information transactions but also in value transactions”. 

Cars with a digital wallet

Among these advances, he cites, for example, the bet of vehicle manufacturers in blockchain and digital wallets. One of them is Germany’s Daimler, which owns Mercedes-Benz and established a partnership in 2019 to develop a blockchain-based digital wallet. The idea is to use it to pay, for example, parking without taking the real wallet in your pocket. 

“At the end of the day, we’re all going to have to live with the token. It doesn’t matter if you like bitcoin or blockchain because we’re all going to use token or token infrastructure this decade, and we’ll have a (digital) wallet, whether you like it or not because it’s a matter of a new standard”. 

In the expert’s assessment, the advancement of the digital economy, especially cryptocurrencies, is not a question of technology but regulation. That is if those operations will have the go-ahead of the authorities. He recalled that Christine Lagarde, for example, president of the ECB, has already said that it will not allow “private” currencies to compete with national currencies. Therefore, it will be necessary to seek agreements to make concessions. 

But he points out that the challenges are interesting since governments cannot destroy either bitcoin or blockchain. “It’s technology. No state can destroy the bitcoin. It can say that you can’t use bitcoin. But it doesn’t have the power to destroy bitcoin, for example.”