Financial Digitalization

Definition ∞ Financial digitalization refers to the widespread adoption of digital technologies to transform traditional financial services and processes. This transition includes digital payments, online banking, and the use of blockchain for asset management. It aims to improve efficiency, accessibility, and speed in financial transactions. This process restructures how financial services are delivered and consumed.
Context ∞ The concept of financial digitalization is consistently present in economic and crypto news, marking a fundamental shift in global finance. Discussions often center on the benefits of increased inclusion, reduced transaction costs, and enhanced data security through new technologies. However, it also presents challenges related to cybersecurity, regulatory adaptation, and the digital divide. The expansion of central bank digital currencies and decentralized finance protocols are key aspects of this ongoing transformation.