1 2 3 4 5 6 Digital Identity is a critical enabler to broaden applications to new verticals; Digital Fiat (legal tender), along with other emerging capabilities, has the ability to amplify benefits Digital identity Digital fiat Future innovations Correct identity information is critical to DLT systemsare frequently denominated The adventof the fourth industrial teta ensuring financial transactions are accurate with tokens that are native to the system – revolution is rapidly altering the financial st and compliant – but integrating physical but users of formal financial infrastructure system and broader economy through the nre identity protocols with DLT creates frictions will demand high levels of liquidity exponential acceleration of innovation rCu and increases the potential for errors between assets on the system and fiat currency rble Afully digital system for storing and Distributed fiat currencies issued by central Opportunities for integration may emerge an transferring identity attributes could be banks could be employed within between distributed financial e directly integrated into distributed financial distributed financial infrastructure, infrastructure and a range of innovations, tyiliinfrastructure ensuring the availability of liquidity even in such as artificial intelligence or the rapidly bpa the event of systemic instability evolving internet of things aC tsfi • Faster and accurate anti-money • Settlement to liquid cash-equivalent een laundering (AML) and know-your-client tokens issued by a central bank ? b (KYC) processes • Elimination of the need for an inefficient The potential benefits of these integrations er • Seamless customer onboarding bridge between cash and new financial are highly uncertain tuFu • Improvedcounterparty matching infrastructure WORLD ECONOMIC FORUM | 2016 22