Global Finance Layer

Definition ∞ The global finance layer refers to the interconnected network of financial institutions, markets, and infrastructure that facilitates the movement of capital and assets across international borders. This layer comprises traditional banking systems, payment networks, securities exchanges, and regulatory bodies that collectively enable global economic activity. It provides the framework for cross-border transactions, investments, and capital allocation. This complex system underpins the worldwide flow of money and financial services.
Context ∞ Digital assets and blockchain technology are increasingly discussed as potential enhancements or disruptors to the existing global finance layer. Debates center on how decentralized finance (DeFi) protocols could offer more efficient and accessible financial services, challenging traditional intermediaries. Regulatory bodies worldwide are working to establish frameworks that integrate digital assets without compromising financial stability or anti-money laundering efforts. The ongoing evolution of this layer will shape the future of international commerce and investment.