Financial Digitization

Definition ∞ Financial digitization refers to the ongoing transformation of traditional financial services and processes into digital formats and platforms. This involves moving from physical transactions and paper-based records to electronic systems, online banking, and digital payment solutions. It enhances efficiency, accessibility, and speed within the financial sector, laying the groundwork for digital assets.
Context ∞ Financial digitization is a pervasive trend that underpins the expansion of digital assets and blockchain technology. Discussions frequently concern the integration of traditional finance with decentralized finance, the development of central bank digital currencies, and the regulatory challenges of overseeing an increasingly digital financial landscape. The future of financial services is expected to be largely digital, with blockchain playing a significant role in infrastructure for asset issuance, trading, and settlement.