The General Manager of the Bank for International Settlements proposed the concept of "Finternet" and used tokenization as a tool to solve the shortcomings of today's financial system.

In a recent paper, Agustin Carstens, General Manager of the Bank for International Settlements (BIS), and Nandan Nilekani, co-founder of India's Infosys, proposed the concept of the "Financial Internet" (Finternet), an interconnected financial system dominated by tokenized assets that aims to overcome the shortcomings in current financial asset transactions. Finternet refers to a series of interconnected systems that aim to integrate many financial functions into a single network and lower the entry barriers for participants. The paper defines Finternet as "multiple interconnected financial ecosystems, like the Internet, designed to put individuals and businesses at the center of their financial lives, thereby empowering them." The core of Finternet is tokenization technology, which allows RWAs and financial assets to be represented in a single system managed by smart contracts, enabling operations and transactions that are not possible with today's technology. The paper points out that tokenization fundamentally reshapes the financial transaction process because tokens include "value and regulatory information that are usually recorded in a database." (Bitcoin.com)