Financial Networks

Definition ∞ Financial networks are interconnected systems that facilitate the transfer of value, information, and financial instruments among participants. In the context of digital assets, this includes traditional banking systems, payment processors, and emerging blockchain-based infrastructures. These networks enable transactions, settlements, and various financial services across different entities. Their efficiency and security are paramount for global commerce.
Context ∞ The current discussion surrounding financial networks in crypto addresses the ongoing integration of blockchain technology with existing financial infrastructure. Debates frequently involve the regulatory challenges and opportunities presented by decentralized financial systems interacting with traditional centralized ones. A key development to observe is the increasing exploration of central bank digital currencies (CBDCs) and their potential impact on both legacy and decentralized financial networks.