According to TechFlow, on October 21, The Block reported that the Bank for International Settlements (BIS) released a report titled "Concepts in the context of currency and other asset tokenization and their impact on central banks." The report explores how tokenization reshapes the financial landscape and affects the role of central banks, while emphasizing the risks and challenges brought about by tokenization.

The report states that tokenization can reduce transaction costs and increase transaction speed, attracting the interest of institutional investors. However, BIS warns that these advantages come with inherent risks, including challenges in governance, legal framework, credit, liquidity, custody and operations. BIS General Manager Agustín Carstens said that tokenization can improve the security and efficiency of the financial system, but it also brings economic, legal and technical challenges.