Financial System Redesign

Definition ∞ Financial system redesign involves a fundamental restructuring of the existing mechanisms, institutions, and regulatory frameworks that facilitate economic transactions and capital allocation. This process seeks to address systemic inefficiencies, enhance stability, and adapt to technological advancements, such as blockchain and digital currencies. The objective is to construct a more resilient, equitable, and efficient global financial infrastructure. This is a long-term, complex undertaking.
Context ∞ The advent of blockchain technology and digital assets is a primary catalyst for discussions surrounding financial system redesign. Central banks worldwide are exploring central bank digital currencies (CBDCs) as a potential element of a modernized financial system. The ongoing dialogue involves balancing innovation with regulatory control, aiming to integrate new technologies while maintaining financial stability and consumer protection. News often covers proposals and pilot programs related to this global initiative.