Global Financial Network

Definition ∞ The global financial network is the interconnected system of institutions, markets, and infrastructure that facilitates money and asset movement worldwide. This term describes the vast, interconnected ecosystem comprising banks, investment firms, exchanges, payment processors, and regulatory bodies that collectively enable cross-border capital flows, trading, and financial services. It includes traditional systems like SWIFT and modern digital payment rails, forming the backbone of international commerce and investment. The network’s efficiency and security are critical for global economic stability.
Context ∞ The emergence of blockchain technology and digital assets presents both opportunities and challenges to the existing global financial network. Discussions often revolve around how decentralized systems can enhance efficiency, reduce costs, and broaden access to financial services, while also addressing regulatory concerns and interoperability issues. The ongoing integration of digital assets into established financial infrastructure marks a significant development.