94Ha Viewpoint
Against the backdrop of the accelerated digital transformation of the global financial system, the construction of digital asset infrastructure has become a key breakthrough in promoting financial innovation. Digital asset infrastructure is not only a technological innovation, but also a fundamental reconstruction of the existing financial system. This reconstruction will bring unprecedented opportunities, but also pose major challenges to the existing regulatory framework and market order, especially the borderless and cross-border nature of digital finance. The demand for interconnection and interoperability in the global financial market is becoming more urgent, and the strategic significance of digital asset infrastructure is becoming more prominent.
The core of digital asset infrastructure lies in building a unified, open, efficient, secure, reliable and interconnected global financial network. This network needs to achieve breakthroughs in three dimensions: technical standardization, regulatory framework and market mechanism. From the perspective of technical standardization, core elements such as encryption algorithms, smart contract specifications, and data exchange protocols must reach a global consensus. This is not a simple issue of technical selection, but a deep game involving the digital sovereignty and financial discourse power of various countries. Especially in the context of the current complex and changing global geopolitical landscape, how to promote global financial integration while safeguarding national interests is a major challenge that requires wisdom and courage. Recently, the concept of Financial Internet (Finternet) proposed by the Bank for International Settlements provides a framework for building a global financial network, opening up exploration and discussion in this regard.
In terms of regulatory framework, regulators of various countries need to establish a coordination mechanism. The traditional territorial regulatory model has been difficult to adapt to the cross-border flow characteristics of digital assets. Establishing a new regulatory framework is necessary to ensure national financial security and promote innovative development. This is a major issue that requires the wisdom of global financial regulators to brainstorm. In particular, in key areas such as anti-money laundering, customer identity identification, and risk management, unified regulatory standards and cooperation mechanisms must be formed. Recently, the exploration and practice of digital asset regulation by major economies around the world have provided valuable experience. In particular, in the field of cross-border payment and settlement, the cooperation between central banks and financial regulators of various countries has demonstrated their determination to promote the development of digital assets.
The interconnection and interoperability of market infrastructure is the material basis for the development of digital assets. This includes the global layout of key links such as trading platforms, clearing systems, and custody services. More importantly, this infrastructure network will support more complex financial product innovations, improve market liquidity, and reduce transaction costs. In this process, how to balance efficiency and risk, and how to ensure that systemic risks are controllable, all require in-depth theoretical research and practical exploration. Especially in the case of intensified market volatility, the resilience and stability of digital asset infrastructure are particularly important. This requires us to fully consider the system’s tolerance under extreme market conditions during the design and construction process.
It is worth noting that the construction of digital asset infrastructure will also provide new possibilities for the development of inclusive finance and green finance. By lowering the entry threshold, disintermediating, and improving service efficiency, digital assets can allow more people to enjoy modern financial services. At the same time, the improvement of infrastructure also provides technical support for the financing of environmentally friendly projects and carbon emission rights trading, and promotes the development of the financial system in a sustainable direction. In the era of digital economy, the digital transformation of financial infrastructure is not only a need for technological progress, but also an important means to promote social equity and sustainable development.
From the perspective of global practice, countries have accumulated rich experience in the construction of digital asset infrastructure. As an international financial center, Singapore is at the forefront in this regard. The Monetary Authority of Singapore recently announced that it would join hands with major international banks and international policymakers to build the “Global Layer One” (GL1), hoping to develop a multi-purpose cross-border shared ledger infrastructure to promote the seamless cross-border issuance, trading, settlement and other functions of digital assets.
Singapore is becoming an important hub for global digital asset innovation, and other major financial centers are also actively exploring and forming their own unique development paths. These practices provide useful reference for the construction of global digital asset infrastructure.
Looking to the future, digital asset infrastructure will undergo a gradual development process. This process requires the coordinated promotion of technological innovation, institutional innovation and market innovation. Governments, financial institutions and market participants must jointly promote this process with an open and inclusive attitude. Only in this way can the important value of digital assets in promoting economic development and improving people’s livelihood be truly realized. Especially at a time when the global economy is facing many uncertainties and deglobalization, it is particularly important to accelerate digital asset infrastructure and build a more open, inclusive and efficient global future digital financial system.
The author Bai Shipan is an advisor to the Nanyang University Alumni Academic Association
Shi Jianzheng is a visiting lecturer at the Singapore University of Social Sciences and a chartered financial technology analyst
