With many young investors getting into blockchain and cryptocurrencies through various internet advertisements, the importance of education in space is becoming more apparent, according to a panel discussion at CV Summit 2022.
Cointelegraph Editor-in-Chief Kristina Cornèr moderated a panel discussion titled “Tokenized Finance, Security Tokens, and Redefining Value.” Panelists included Massimo Butti, Head of Equities at SDX; Nicola Plain, CEO of Aktionariat; Thomas Eichenberger, head of business units at Sygnum; and Arnab Naskar, the co-founder of STOKR.
During the discussion, several topics were discussed, including how distributed ledger technology (DLT) is forcing traditional finance to rethink its ways and how accessibility and education of the community and regulators are becoming vital.
According to Butti, the change in mindset of traditional financiers like him has been massive. The executive explained that this is because distributed ledger technology is one of the breaking points in the evolution of financial and capital markets. He further stated that:
“This technology is so revolutionary that [it] forced people like me who come from the traditional world of finance to rethink not only the way they work, but also their relationship with their investors and their market.
The executive noted that this new technology allows the democratization of access to financial markets. However, Butti thinks it will take time before the community is able to determine whether this new access is a good thing or not.
Related: Prince Philip of Serbia Suggests Bringing Bitcoin into the Classroom
In terms of accessibility, Plain also joined his thoughts. Contrary to the idea that anyone can access financial markets, Plain believes that participants will be market determined in the future. However, he thinks it’s not for everyone. “If everyone wants it, we will use it. We’ll see. But currently, I think what I’m seeing is mostly people who were already investing,” he said.
Eichenberger also agreed with Plain’s view and stressed the importance of educating investors who will have access to new financial technologies so that they can reap the benefits. The executive said:
“We provide them with the right level of information, the right level of risk disclosure and, ideally, the right level of advice to ensure that they ideally benefit from the upside.”
With education highlighted, Cornèr took the opportunity to ask the panel about the topic and how they would approach this aspect of innovation. In response to the question, Naskar pointed out that outside of the community, it is also important to educate regulators. He explained that:
“The biggest challenge for regulators right now, they don’t know about industry regulators. That’s the biggest problem. They don’t know how financial markets are used and how their operations work technologically.
Naskar stressed that it is very important to resolve this issue before moving on to investors. According to the executive, it is very important to help regulators understand how these new financial instruments work technologically.