According to a recent survey from ‘Big’ Four’ auditor KPMG, American consumers are becoming more open to the idea of using tokens as they gain further knowledge in the use cases of digital currencies. Exploring the idea of tokenization in a report named ‘Blockchain-enabled digital tokenization is poised to transform commerce’, KPMG shows the potential of blockchain technology in modern commerce.
The auditor and accounting organization describes the potential of a tokenized economy, where asset ownership can be obtained with the use of a digital token, based on a blockchain network. The report states that tokens provide immutable, transparent, and frictionless transactions, which can create an entirely new business model.
Additionally, digital tokens provide new ways for paying for products and services, while at the same time strengthening brand loyalty and customer trust, claims KPMG.
In their survey, KPMG found out that American consumers of all ages and backgrounds became interested in the notion of using digital tokens, in the form of cryptocurrencies, as a payment option.
83% of Americans between the ages of 18 and 24 were interested in a tokenized economy, confirming that Generation Z will be the first cohort of early adopters. KPMG compares the previous use of tokens in arcades and public transport to the recent potential that we have reached with the advance of blockchain technology.
The firm also found out a piece of surprising information, more than 50% of Americans older than 65 are interested in the future of tokens. Seeing the interest from people of all generations, it seems that a tokenized economy may become a reality in the near future.
The survey indicates that 63% of participants regarded digital tokens as an ‘easy’ method of payment. Concerning the use of tokens in loyalty programs, KPMG discovered that 55% of participants believed that they could use loyalty rewards in ‘more constructive ways.
Tokenization can be introduced in a variety of sectors
KPMG’s report discusses various real use cases in which tokenization could be applied, such as healthcare, real estate, and even travel.
Concerning healthcare, the firm states that blockchain tokenization can help with the management of the Health Insurance Portability and Accountability Act (HIPAA), by correlating, tracking, and coordinating the identities of healthcare providers.
As for real estate, blockchain provides a method of introducing a new level of certainty and confidence in titles, land-use agreements, property surveys, and other legal tools that connect ownership with real estates. In that regard, tokens can be used to create a virtual asset which represents the ownership of a certain property.
Lastly, as tokenization can verify the ownership of any asset, no matter how abstract its value is, tokens can be even used for use cases such as travel. By applying them to loyalty points, consumers can transfer their rewards and spend them with ease.
KPMG’s venture in the blockchain industry
In a press release announcing the release of the report, the head of KPMG’s blockchain division in the U.S. Arun Ghosh stated that ‘Tokenization is ushering in the next generation of commerce. It provides inspiring new ways to classify value, either by creating new assets or reimagining traditional ones, sustained with the security and transparency of blockchain.’
As one of the ‘Big Four’, KPMG is deeply interested in the world of blockchain technology and what it can provide for the financial sector. The firm has conducted extensive research on distributed ledger technology and in partnership with Microsoft and Singapore airlines, they have successfully released a digital loyalty program for airline customers.