Digital technology advancements have revolutionized people's lives over the last several decades. However, huge parts of the financial system remain locked in the past. Many transactions still take days to complete and are based on time-consuming clearing, messaging, and settlement processes, as well as physical paper trails. Improving the operation of the financial system is thus a critical public policy goal. However, in order to create a financial system appropriate for the future, we must first define our goals.

The "Finternet" concept is introduced as a vision for the future financial system: various financial ecosystems interconnected in the same way as the internet is. The Finternet would be meant to empower individuals and companies by placing them in the center.

The Finternet would be meant to empower people and companies by putting them in control of their finances. Unified ledgers are a potential way to make this vision a reality. Unified ledgers, based on a digital-first strategy and utilizing tokenization, would enhance existing financial activities while also enabling whole new financial products and transactions. We outline the Finternet's economic justification as well as the necessary technical, regulatory, and legal building components. In addition, we present eight essential design principles that we believe should be a key component of the future financial system.

There are three key components: an efficient economic and financial architecture, the use of cutting-edge digital technology, and a strong legal and governance framework. Unified ledgers show promise in meeting all three requirements. In instance, by consolidating diverse financial assets in a single location, they might significantly minimize the need for long communications and clearing processes, resulting in more efficient and dependable services for consumers.

A Vision for the Finternet

Multiple financial ecosystems are interconnected, much like the internet, and are intended to empower individuals and organizations by putting them at the center of their financial life. It advocates for a user-centric strategy that reduces obstacles to financial services and systems, hence increasing access for all. The proposed system uses novel technologies like as tokenization and unified ledgers, supported by a strong economic and legal framework, to significantly extend the breadth and quality of financial services. This integration intends to increase engagement, provide more personalized services, and enhance speed and reliability, all while saving money for end customers. The majority of the technology required to fulfill this goal already exists and is rapidly advancing as a result of global initiatives.

To make this goal a reality, public and private sector organizations must work together proactively; a call to action for these organizations to build a solid foundation. This will pave the path for a digitally inclusive, inventive, participative, accessible, and inexpensive financial environment that leaves no one behind.