According to a panel discussion at CV Summit 2022, with many young investors getting involved in blockchain and cryptocurrencies through various advertisements on the internet, the importance of education in the space has become more apparent.
Cointelegraph Editor-in-Chief Christina Corner moderated a panel discussion titled “Tokenized Finance, Security Tokens and the Redefining of Value.” Panelists included Massimo Butti, Head of Equity at SDX; Nikola Plein, CEO of Actenariate; Thomas Eichenberger, head of business units at Sygnum; and Arnab Naskar, co-founder of STOKR.
During the discussion, a number of topics were brought up, including how distributed ledger technology (DLT) is forcing traditional finance to rethink its methods and how access and education from the community and regulators becomes important.
According to Butti, there has been a massive change in the mindset of traditional finance people like himself. The executive explained that this is because distributed ledger technology is one of the breaking points in the development of financial and capital markets. He further said that:
“This technology is so revolutionary that [it] People like me who come from the traditional world of finance have forced you to rethink not only the way you work but also the way you relate to your investors and your market.”
The executive said this new technology allows for the democratization of access to financial markets. However, Butti believes it will take time for the community to determine whether this new reach is a good thing.
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Plaine also impressed with his ideas in terms of accessibility. Contrary to the belief that everyone can access the financial markets, Plein believes that the participants will be determined by the market in the future. However, he thinks it is not for everyone. “If everyone wants it, we will use it. We will see. But at the moment, I think this is what I see that most people were already investing in,” he said.
Eichenberger also agreed with Plaine’s approach and highlighted the importance of educating investors, who will have access to new financial technologies so that they can take advantage. The executive said:
“We also provide them with the right level of information, the right level of risk disclosure, and ideally the right level of advice to make sure they are optimally profiting.”
Education Highlights, Corner took the opportunity to ask the panel more about this topic and how they would address this aspect of innovation. Responding to the question, Naskar explained that apart from the community, it is also important to educate the regulators. He explained that:
“The biggest challenge for regulators right now, they don’t know the industry regulators. That is the biggest problem. They don’t know how the financial markets are being used and how their operations are technically working.”
Naskar highlighted that it is very important for investors to address this issue before proceeding. According to the executive, it is very important to help regulators understand how these new financial instruments work technically.
