Core Viewpoint - The central financial work conference emphasizes the importance of technology finance, green finance, inclusive finance, pension finance, and digital finance for promoting high-quality financial development. This sets the direction for the financial industry in the digital age, highlighting the transformative impact of fintech on banking services [1]. Group 1: Strategic Considerations for Banks - Banks should not blindly pursue internationalization nor neglect the importance of deepening their local market presence. Understanding local customer needs and regulatory environments is crucial for building strong customer relationships and brand recognition [2][4]. - The application of digital technology enhances the ability to segment and customize services in the local market, improving customer experience and loyalty [4]. - Internationalization can help banks expand growth opportunities and diversify market risks, especially with the increasing demand for cross-border financial services [4]. Group 2: Technological Innovations Impacting Banking - Key technologies such as blockchain and generative AI are likely to disrupt traditional credit and payment systems. Blockchain enhances transparency and security in payments and credit, while generative AI supports intelligent processes in credit approval and customer service [8][9]. - AI and big data analytics provide capabilities that traditional methods cannot achieve, such as processing vast amounts of data for insights, offering personalized services, and innovating product and business models [6][12]. Group 3: Challenges and Future Directions - The rapid development of digital finance presents significant challenges, including regulatory uncertainties, data governance issues, and the need for talent and cultural transformation within banks [12][16]. - The future of digital finance is expected to be driven by both scenario-based and technology-driven approaches, with an emphasis on addressing real business needs while leveraging emerging technologies for long-term competitive advantages [15][17].

Core Viewpoint - The relationship between Real World Assets (RWA), smart contracts, and tokens is crucial for the implementation and value realization of RWA in the blockchain ecosystem [1]. Group 1: Relationship between RWA and Smart Contracts - Smart contracts play a central role in the realization of RWA by enabling the digitalization and tokenization of assets [3]. - They automate the management and operations of RWA, including transactions, profit distribution, and settlement [4]. - For example, a token representing a rental property can automatically collect rent and distribute profits to token holders [5]. - In supply chain finance, smart contracts can track the payment status of receivables and ensure asset authenticity [6]. - The transparency and immutability of smart contracts address trust issues in traditional finance by verifying off-chain asset authenticity and recording transactions [7]. - Smart contracts can embed compliance rules, such as KYC and AML, ensuring that RWA token transactions adhere to local regulations [8]. Group 2: Relationship between RWA and Tokens - Tokens serve as the digital representation of RWA on the blockchain, acting as the medium for value transfer [10]. - The core concept of tokenization involves converting ownership or profit rights of real-world assets into digital tokens on the blockchain [10]. - Tokenization can be full, where one token corresponds to an entire asset, or partial, where an asset is divided into multiple tokens representing fractional ownership [11]. - RWA tokens derive their value from the underlying real-world assets, with price fluctuations typically linked to the value of these off-chain assets, unlike traditional cryptocurrencies [12]. - Types of tokens include equity tokens (representing ownership), revenue tokens (representing profit rights), and debt tokens (representing debt assets) [13]. - Tokens can be freely traded on the blockchain, enhancing asset liquidity, and can be used for financing, profit distribution, and collateral in lending agreements [13]. Group 3: Synergistic Effect of RWA, Smart Contracts, and Tokens - The implementation of RWA relies on the synergy between smart contracts and tokens, which can be illustrated through a process flow [15]. - The process begins with asset registration and verification off-chain, followed by the generation of corresponding tokens based on asset value [15][16]. - Tokens are traded on the blockchain, with smart contracts automating asset transfer and profit distribution according to predefined rules [17]. - Upon asset maturity or redemption, smart contracts can destroy tokens and return profits to token holders [18]. - The advantages of this synergy include increased efficiency, transparency, and reduced costs in asset management and transactions [22]. Group 4: Applications and Use Cases - RWA, smart contracts, and tokens can be applied in various sectors, such as real estate tokenization, supply chain finance, and art investment [22]. - Real estate can be tokenized into smaller units, allowing investors to purchase fractional tokens [22]. - Companies can tokenize receivables through smart contracts for financing purposes [22]. - Art pieces can also be tokenized, enabling ordinary investors to participate in high-end art investments [22].