Description

Digital assets denote all assets (e.g., documents, images) that can be stored, traded and used digitally. DAs describes assets based on distributed ledger technology (DLT) or blockchain technology. DAs constitute an increasingly important element in the financial industry, with a wide range of applications and business chances. Some of the key areas include Central Bank Digital Currencies (CBDCs), Non-Fungible Tokens (NFTs), blockchain technology, smart contracts, Decentralized Finance (DeFi), and risk management.

CBDCs are digital versions of traditional fiat currencies that are issued and backed by central banks. NFTs are unique, non-interchangeable digital assets that are used to represent ownership of digital art, music, and other types of intellectual property. Blockchain technology is a decentralized, secure and transparent ledger system that is used to record and verify transactions. Smart contracts are self-executing contracts that are programmed to automatically execute the terms of an agreement when certain conditions are met. DeFi refers to financial applications built on blockchain technology that allow for decentralized and automated financial transactions.

Risk management is a critical area of concern when it comes to digital assets, as they can be subject to a variety of risks including market volatility, fraud, and cyber attacks. Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations are important for the digital asset industry. FinTech, options trading, and peer-to-peer lending are other areas where digital assets are having an impact. Finally, the proliferation of digital business models and the increasing trend towards Open Science are further contributing to the growth and development of the digital asset industry.