Description
Discover how blockchain, stablecoins, and Web3 are revolutionizing global finance and creating unprecedented investment opportunities
In Towards a Tokenized Economy, leading financial executive Yoshitaka Kitao provides essential insights into the transformation of global finance through technological innovation. Drawing on his extensive experience in financial services and strategic technology investments, Kitao explains how blockchain, cryptocurrency, and tokenization are fundamentally reshaping monetary systems, investment strategies, and the structure of the world economy.
This comprehensive guide takes readers through the emerging landscape of modern finance, from the strategic importance of dollar-pegged stablecoins and Bitcoin's role as a reserve asset to the revolutionary potential of Web3, decentralized finance, and security tokens. Kitao explains complex technological concepts in accessible terms while revealing the geopolitical implications of these developments, including strategies to maintain monetary dominance through cryptographic assets. The book combines technological depth, financial expertise, and strategic foresight, giving you:
- In-depth analysis of stablecoins processing over 500 trillion yen monthly and their impact on global payment systems
- Clear explanations of Bitcoin's blockchain infrastructure, mining operations, and its emergence as institutional reserve holdings
- Comprehensive coverage of Web3 fundamentals including smart contracts, decentralized finance protocols, NFTs, and autonomous organizations
- Strategic insights into RWA tokens, including security tokens, tokenized equities, and the transformation of capital markets and exchanges
- Exclusive perspective on how major financial institutions are entering content and advertising businesses through integrated platforms
Towards a Tokenized Economy is a must-read for investors, financial professionals, executives, and business leaders who need to understand and capitalize on the transformation of modern finance. Whether you're hoping to enhance your investment strategy, evaluate emerging innovations, or position your organization for the tokenized world, Kitao delivers the knowledge you need to navigate a financial world that is changing at its foundations.
Table of Contents
Preface xv
Introduction The Future Landscape of Finance Emerging from Technological Evolution 1
Foresight Can Be Cultivated 3
Time Machine Management and the Internet 4
Importance of Understanding the Substance of Technology 6
Chapter 1 The New Dollar- Based Monetary System Created by the Convergence of Finance and Digital Technology 9
Cashless Society Is Just the Beginning 11
Crypto Assets Are Driving the Convergence of Finance and Digital Technology 11
Stablecoins Now See More Than JPY 500 Trillion in Monthly Transactions 14
Why Stablecoins Matter: Scale, Cost, and Speed 17
Stablecoins as a Safe Store of Value 19
The Strategic Position of U.S. Dollar- Pegged Stablecoins 21
What Makes a Reserve Currency: Credibility and Convenience 23
Background and History of the U.S. Dollar- Based System 24
The U.S. Dollar System Is Showing Signs of Decline 26
De- dollarization: The Challenge to U.S. Dominance 27
Russia’s Invasion of Ukraine Accelerates De- dollarization 29
BRICS Leads the Push for De- dollarization 30
Using Crypto Assets to Preserve the Dollar- Based System 32
Trump Administration’s Serious Approach to Crypto Asset Policies 33
Why the Trump Administration Banned CBDC Issuance 35
U.S. Treasury Secretary Clarifies the Administration’s Stance 36
Key Crypto Legislation Progressing Quietly Behind Trump’s Tariffs 38
Announcement of Project Crypto by the U.S. SEC 39
Stablecoin- Specific Bills to Watch 41
Stablecoins Increase the Value of U.S. Treasury Bonds 42
The Growing Burden of U.S. Debt 44
Elon Musk’s Role and Misunderstood Impact 47
Raising Government Efficiency Through Digital Technology 48
Blockchain Technology: Ensuring Operational Transparency 49
Innovation and the “Kondratiev Wave” 51
The Advent and Spread of Crypto Assets Lead a Historic Shift in the Global Payment System 53
Chapter 2 Why Has the Price of Bitcoin Exceeded JPY 10 million? 57
Understanding the True Value of Bitcoin 59
A Financial Asset Bigger Than Google or Amazon 59
The Launch of Bitcoin ETFs Had a Major Impact 61
U.S. Financial Authorities Call Bitcoin “Digital Gold” 63
The Trump Administration’s “Strategic Bitcoin Reserve” Plan 65
Bitcoin Is a Reserve Asset to Be Stockpiled 66
The Intrinsic Value of Bitcoin Is “Technology” 68
The Fate of “Digital Data” with Both Advantages and Disadvantages 68
How Blockchain Makes Data Alteration Impossible 70
A “Distributed Ledger” Is a Shared Database Across Many Parties 71
Cloud Services Use a Centralized Network 72
Why Blockchain Is Called Decentralized 73
Creating and Linking “Blocks” of Data: Why It’s Called a Blockchain 74
“Hash Functions”: The Encryption Technology That Prevents Tampering 75
Why Blockchain Data Can’t Be Changed 77
“Proof of Work”: The Rule That Keeps Everything in Order 77
Mining: Competing Like Gold Miners 79
Why Individuals Can’t Mine Bitcoin Anymore 80
Blockchains Can Be “Hijacked”! 82
Bitcoin Has Built the World’s Strongest Blockchain 83
Bitcoin’s Value Will Continue to Rise 84
Chapter 3 The Convergence of Finance and Digital Technology Enabled by Web3: What Does It Mean? 85
Web3 (in a Narrow Sense): A Decentralized Internet Based on Blockchain 87
Web3 (in a Broad Sense): A New Era for the Digital Economy 87
The “First Economic Democratization” Brought by the Internet Revolution 89
“Web2” Enabled Two- Way Communication 90
Big Tech’s Monopolization of Information Becomes Clear 91
Individuals Have No “Property Rights” Over Their Data in Web2 92
Stricter Regulations on Big Tech Are Progressing 94
Web3 Brings the Second Economic Democratization 94
“Smart Contracts” Are Key to Web3’s Decentralization 96
Ethereum Created Smart Contracts 97
From Online to On- Chain 98
Layer 2: Addressing the Scalability Problem 99
The Essential Role of Interoperability 100
Decentralized Finance, the Financial System of the Web3 Era 102
The Expanding Market for Decentralized Exchanges 104
NFTs Are the First Web3 Service to Break Through 105
NFT Transaction Records Are Managed on a Blockchain 106
Decentralized Autonomous Organization, the Way Organizations Exist in the Web3 Era 107
Yamakoshi DAO Is a Successful Example in Japan 110
The Essence of Web3 Is Decentralization × Co- creation, Ownership, and Exchange of Value 111
Chapter 4 The Rise of the Token Economy and the Formation of a Digital Ecosystem 113
The Arrival of the Token Economy 115
The Digital Space Ecosystem Is a Concept That Encompasses the Metaverse 116
Manufacturing Production Simulation Is Also Possible in the Metaverse 118
Metaverse + Web3 = Digital Space Ecosystem 120
Security Tokens, the Next- Generation Financial Instruments 122
STO, Capital Raising via Security Tokens 124
SBI Group as a Trailblazer in Security Tokens 125
Growing Momentum Toward Tokenized Equities 127
Digitalization of Exchanges and Capital Markets 130
Boosting Circulation of USD- Pegged Stablecoins in Japan 131
Lending Services Offer Significant Higher Returns Than Foreign Currency Deposits 133
Promoting the Issuance and Circulation of Yen- Pegged Stablecoins 134
Advancing Foreign Currency Transactions Through Tokenized Deposits 135
Chapter 5 The Convergence of Finance and Media in the United States 137
Financial Groups Entering the Media Business 139
Elon Musk’s Ambitious XMoney 140
Easier to Tip Influencers and to Pay for Content 141
A Super App Where Everything Is Done in One App 142
What’s Beyond X’s Super App Plan? 144
The Rise of Social Trading in the United States 145
AI’s Role in Turning Finance into Content 146
Blackstone’s Acquisition of IP Content and Production Companies 147
Expanding into the E- Comic Business with Mecha Comic 150
J.P. Morgan Chase’s Start in the Media Business with a Restaurant Search Service 151
The Latest Ad Platform: Retail Media Network 152
Protecting Customers by Vetting Advertisers 154
Connected Commerce Provides an Optimal Shopping Experience 155
Robinhood, a U.S. Financial Company, Enters the Media Business 156
Digital Finance and AI Technology Act as the Adhesive Between Media and Finance 158
Why SBI Group Is Entering the Media Business 160
Sbi Neo Media Holdings’ Business Areas 162
Reasons Why Financial Groups Haven’t Entered the Media Space in Japan 165
SBI Group’s Strengths in the Media Space 167
Comprehensive Financial Information Platform from the Convergence of Finance and Media 170
The Convergence of Finance and Media Will Also Change Individuals’ Lifestyles 172
Regulations Hinder the Convergence of Media and Finance 173
We Must Be Mindful of a New Digital Divide 176
Afterword 179
About the Author 191
Index 193
