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Last week, we discussed the application of blockchain technology and cryptocurrencies in asset tokenization. This week, we&#39;re reviewing an interesting development in which the US Federal Reserve acknowledges the potential of tokenization and smart contracts to improve traditional financial transactions.Federal Reserve Governor Christopher Waller spoke at the Cryptocurrency and the Future of Global Finance event on April 20 about the benefits of smart contracts in enhancing the financial sector&#39;s efficiency.Waller&#39;s <a href="https://www.federalreserve.gov/newsevents/speech/waller20230420a.htm" rel="noopener noreferrer nofollow">speech</a> titled &#34;Innovation and the Future of Finance&#34; highlighted the private sector&#39;s use of blockchain technology and smart contracts in foreign-exchange trades to enhance efficiency.According to Waller, firms have already executed foreign-exchange trades using blockchain technology with smart contracts to improve efficiencies. This technology allows participants in the transaction to have greater flexibility in terms of settlement time and could function as a crucial risk reducer.To explain this better, let&#39;s take the example of real estate. Tokenization of property rights can allow fractional ownership of high-value assets, enabling investors to own a portion of an expensive property without having to purchase it entirely. This democratizes access to investment opportunities, making them accessible to small investors.Smart contracts can also automate the rental process by enabling tenants to pay their rent automatically, without having to involve intermediaries, reducing time and transaction costs. In addition, smart contracts can help in ensuring that rental agreements are adhered to, ensuring that security deposits are returned promptly, and that property maintenance costs are adequately taken care of.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/3b165038fbc84b0f8438a281e1345b3e.png" />Furthermore, in the stock market, smart contracts can enable automatic compliance with regulations, reducing the need for intermediaries such as brokers and custodians. This can lead to faster and more cost-efficient trades, benefiting both the investors and the market participants.It is worth noting that the benefits of tokenization and smart contracts are not limited to the real estate and stock markets alone. They have broad applications in various fields, including supply chain management, insurance, and trade finance.While the benefits of tokenization and smart contracts cannot be overstated, they come with their own risks. The Fed Governor acknowledges that bugs, cyber threats, and settlement risks are a few of the risks that come with adopting smart contracts and tokenization. However, he is optimistic about the technology&#39;s potential to improve the efficiency of traditional financial transactions.Waller also highlighted the potential of tokenization and AI in banking and the economy&#39;s future but didn&#39;t touch upon any monetary policy-related issues.While the adoption of smart contracts and tokenization poses risks, the potential benefits in the financial sector&#39;s efficiency, risk reduction, and settlement times are enormous. It is essential to embrace innovation while also proceeding with caution.Catch up on our published articles for the week!<h4>News</h4><ul><li>Ohio Congressman to Introduce Legislation That Could Remove Gary Gensler As SEC Chair &gt;&gt;&gt; <a href="https://defi-planet.com/2023/04/ohio-congressman-to-introduce-legislation-that-could-remove-gary-gensler-as-sec-chair/" rel="noopener noreferrer nofollow">Read more.</a></li><li>US SEC Considering Legal Action Against Bittrex Over Investor Protection Regulations Violations &gt;&gt;&gt; <a href="https://defi-planet.com/2023/04/us-sec-considering-legal-action-against-bittrex-over-investor-protection-regulations-violations/" rel="noopener noreferrer nofollow">Read more.</a></li><li>Coinbase to Aid UK’s Web3 Hub Plan After Blockchain Task Force Reactivation &gt;&gt;&gt; <a href="https://defi-planet.com/2023/04/coinbase-to-aid-uks-web3-hub-plan-after-blockchain-task-force-reactivation/" rel="noopener noreferrer nofollow">Read more.</a></li><li>EU Legislators Call for Safe and Human-centric AI &gt;&gt;&gt; <a href="https://defi-planet.com/2023/04/eu-legislators-call-for-safe-and-human-centric-ai/" rel="noopener noreferrer nofollow">Read more.</a></li><li>SEC Chair Gensler’s Prior Endorsement of Algorand Contradicts Recent Unregistered Security Claim &gt;&gt;&gt; <a href="https://defi-planet.com/2023/04/sec-chair-genslers-prior-endorsement-of-algorand-contradicts-recent-unregistered-security-claim/" rel="noopener noreferrer nofollow">Read more.</a></li><li>UAE’s SCA To Accept License Applications for Virtual Asset Services &gt;&gt;&gt; <a href="https://defi-planet.com/2023/04/uaes-sca-to-accept-license-applications-for-virtual-asset-services/" rel="noopener noreferrer nofollow">Read more.</a></li><li>Bitget and MEXC Partner With Core DAO to Launch $200M Ecosystem Fund &gt;&gt;&gt; <a href="https://defi-planet.com/2023/04/bitget-and-mexc-partner-with-core-dao-to-launch-200m-ecosystem-fund/" rel="noopener noreferrer nofollow">Read more.</a></li><li>Babel Finance Gets Creditor Protection Extension in Singapore &gt;&gt;&gt; <a href="https://defi-planet.com/2023/04/babel-finance-gets-creditor-protection-extension-in-singapore/" rel="noopener noreferrer nofollow">Read more.</a></li><li>MetaMask Denies $10M Wallet Exploit Claims &gt;&gt;&gt; <a href="https://defi-planet.com/2023/04/metamask-denies-10m-wallet-exploit-claims/" rel="noopener noreferrer nofollow">Read more.</a></li><li>Gate Pay Partners With Georgian Platform for Crypto Payment Options &gt;&gt;&gt; <a href="https://defi-planet.com/2023/04/gate-pay-partners-with-georgian-platform-for-crypto-payment-options/" rel="noopener noreferrer nofollow">Read more.</a></li><li>EU Commission Launches Research Hub to Audit AI Algorithms of Big Tech Firms &gt;&gt;&gt; <a href="https://defi-planet.com/2023/04/eu-commission-launches-research-hub-to-audit-ai-algorithms-of-big-tech-firms/" rel="noopener noreferrer nofollow">Read more.</a></li><li>BIS and Bank of England Test Distributed Ledger Based Project, Project Meridian &gt;&gt;&gt; <a href="https://defi-planet.com/2023/04/bis-and-bank-of-england-test-distributed-ledger-based-project-project-meridian/" rel="noopener noreferrer nofollow">Read more.</a></li><li>Elon Musk Threatens Lawsuit Against Microsoft &gt;&gt;&gt; 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<a href="https://defi-planet.com/2023/04/thodex-ceo-extradited-to-turkey-on-fraud-charges-62-others-arrested-in-cryptocurrency-scandal/" rel="noopener noreferrer nofollow">Read more.</a></li><li>Bankrupt Crypto Lender, Voyager Digital, to Sell Assets to Binance.US After Resolution With US Government &gt;&gt;&gt; <a href="https://defi-planet.com/2023/04/bankrupt-crypto-lender-voyager-digital-to-sell-assets-to-binance-us-after-resolution-with-us-government/" rel="noopener noreferrer nofollow">Read more.</a></li><li>European Parliament Passes MiCA Legislation for Cryptocurrency Regulation &gt;&gt;&gt; <a href="https://defi-planet.com/2023/04/european-parliament-passes-mica-legislation-for-cryptocurrency-regulation/" rel="noopener noreferrer nofollow">Read more.</a></li><li>XRP Healthcare Africa Partners With Forbes-Rated Investor, Hesham Zreik’s FasterCapital &gt;&gt;&gt; <a href="https://defi-planet.com/2023/04/xrp-healthcare-africa-partners-with-forbes-rated-investor-hesham-zreiks-fastercapital/" rel="noopener noreferrer nofollow">Read more.</a></li><li>Paradigm Criticizes US SEC’s Disclosure Framework for Cryptocurrencies &gt;&gt;&gt; <a href="https://defi-planet.com/2023/04/paradigm-criticizes-us-secs-disclosure-framework-for-cryptocurrencies/" rel="noopener noreferrer nofollow">Read more.</a></li><li>Ontario Teachers’ Pension Plan Shuns Crypto Investments After Losing $95M to FTX Crash &gt;&gt;&gt; <a href="https://defi-planet.com/2023/04/ontario-teachers-pension-plan-shuns-crypto-investments-after-losing-95m-to-ftx-crash/" rel="noopener noreferrer nofollow">Read more.</a></li><li>Binance CSO Accuses SBF of Spreading False Rumours Before FTX Collapse &gt;&gt;&gt; <a href="https://defi-planet.com/2023/04/binance-cso-accuses-sbf-of-spreading-false-rumours-before-ftx-collapse-2/" rel="noopener noreferrer nofollow">Read more.</a></li><li>Ukraine Likely to be Among First Countries to Integrate MiCA Provisions into National Law &gt;&gt;&gt; <a href="https://defi-planet.com/2023/04/ukraine-likely-to-be-among-first-countries-to-integrate-mica-provisions-into-national-law/" rel="noopener noreferrer nofollow">Read more.</a></li><li>Abu Dhabi’s Financial Free Zone Introduces Legal Framework for Decentralized Economy &gt;&gt;&gt; <a href="https://defi-planet.com/2023/04/abu-dhabis-financial-free-zone-introduces-legal-framework-for-decentralized-economy/" rel="noopener noreferrer nofollow">Read more.</a></li></ul>Markets<ul><li>Solana Labs Announces Mobile Phone Launch, But SOL Struggles to Rally: Is $100 Price Target Still Realistic for 2023? &gt;&gt;&gt; <a href="https://defi-planet.com/2023/04/solana-labs-announces-mobile-phone-launch-but-sol-struggles-to-rally-is-100-price-target-still-realistic-for-2023/" rel="noopener noreferrer nofollow">Read more.</a></li><li>Shiba Inu (SHIB) Jumps to 14th Largest Crypto by Market Cap, Outpacing AVAX; Can PEPE Coin Flip It? &gt;&gt;&gt; <a href="https://defi-planet.com/2023/04/shiba-inu-shib-jumps-to-14th-largest-crypto-by-market-cap-outpacing-avax-can-pepe-coin-flip-it/" rel="noopener noreferrer nofollow">Read more.</a></li></ul><h4>In Other News…</h4>Elon Musk Announces TruthGPT: The AI chatbot that seeks to counteract left-wing biasAccording to a recent report from FOX News, Elon Musk, CEO of Twitter and Tesla, has announced his latest creation - a truth-seeking AI chatbot called TruthGPT. The main goal of this new AI is to understand the nature of the universe, which Musk believes could result in safe AI that is unlikely to annihilate humanity.During the interview with Tucker Carlson, Musk reportedly expressed concerns that ChatGPT’s left-wing developers have programmed their chatbots to “lie,” which could have a negative impact on elections. Presumably, TruthGPT could counterbalance AI programs with left-wing bias — though it is likely to be accused of having a right-wing bias.The interview with Tucker Carlson also highlighted that Musk was involved in funding the competing AI chatbot, ChatGPT. Carlson argued that Musk wanted to have control over the project but lost out to Microsoft and Google. (Note that Microsoft and Google are investors in ChatGPT’s parent firm OpenAI, and not owners of the company).While further details on TruthGPT are not yet available, it is interesting to note that Musk registered a new company called X.AI on April 15, which appears to be focused on artificial intelligence products. Whether TruthGPT will be developed by the new company remains to be seen.In a <a href="https://futureoflife.org/open-letter/pause-giant-ai-experiments/" rel="noopener noreferrer nofollow">public letter</a> signed with other experts on March 22, Musk highlighted the importance of slowing down AI development to reduce risk, which is in line with the goals of his latest project.Spotlight on interesting projectsBetDEXThe <a href="https://www.betdex.com/" rel="noopener noreferrer nofollow">BetDEX Exchange</a> is a sports betting exchange built on the Monaco Protocol, allowing for peer-to-peer wagering.The Exchange is licensed and regulated under the jurisdiction of the Isle of Man via the Gambling Supervision Commission. BetDEX is a key contributor to the Monaco Protocol, a permissionless decentralized and open-sourced protocol built on the Solana blockchain, supporting prediction and betting markets.For more information, visit <a href="https://www.betdex.com/" rel="noopener noreferrer nofollow">https://www.betdex.com/</a>.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/8e8b54bbe76a4e6cb998df9e61ab9ad3.png" />If you want more content like this, visit <a href="https://defi-planet.com/" rel="noopener noreferrer nofollow">DeFi Planet</a> and follow us on <a href="https://twitter.com/PlanetDefi" rel="noopener noreferrer nofollow">Twitter</a>, <a href="https://www.linkedin.com/company/defi-planet/" rel="noopener noreferrer nofollow">LinkedIn</a>, <a href="https://www.facebook.com/DeFi-Planet-129907662611402" rel="noopener noreferrer nofollow">Facebook</a>, <a href="https://www.instagram.com/defi.planet/" rel="noopener noreferrer nofollow">Instagram</a>, <a href="https://medium.com/&#64;defi-planet" rel="noopener noreferrer nofollow">Medium</a>. and <a href="https://coinmarketcap.com/community/profile/DeFiPlanet/" rel="noopener noreferrer nofollow">CoinMarketCap Community</a>.

Weekly Round-Up #47 | Federal Reserve Governor Acknowledges the Potential of Tokenization and Smart Contracts

DeFi Planet

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