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Introduction
Stepping into the Point Zero Forum 2023, held by Elevandi and the Swiss State Secretariat
in Zurich during June 26-28, the atmosphere was charged with anticipation. With over 1300
attendees worldwide, the event was set to foster a vital dialogue between private and public
sectors about policy and technological advancements in finance.

These are CFTE’S notes from the event, with a particular focus on Digital Assets because of
our ongoing programme with Singapore Management University on Blockchain and Digital
Assets for Financial Services.

Overall, Point Zero was an exceptional forum, gathering senior leaders across government,
central banks, industry and investors. The structured panels and roundtable combined with the
informal discussions gave a unique insight on the priorities and concerns in the industry. This
year, it was Digital Assets, Artificial Intelligence and Sustainability.

Regarding digital assets, it's fair to say that many were surprised by how quickly institutional
involvement had progressed in just a year. From CBDCs to Purpose Bound Money, from Project
Guardian to MICA, discussions were about real life experiences and sharing of best practice,
including some very detailed and technical insights.

Whereas a few years ago it was about vision and proof of concept, this year was about cross
industry collaboration on real projects.

Read more below and a huge thank you to the teams at Elevandi and the Swiss State
Secretariat for a truly exceptional event that brought the industry together.

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 Notes from Point Zero Forum 2023

CBDCs: Catalysts for Financial

Innovation?
More central banks are actively investigating the possibility of introducing CBDCs, and 114 countries,
representing 95% of global GDP, have developed or tested in the pilot stage of their CBDCs projects in
2022. CBDCs serve as an innovative digital payment solution with the ability to foster financial
inclusion. However, the current adoption rate is still lower than its expectation, for example, the
adoption rate of Bahamian Central Bank's SAND Dollar was only 7.9% in 2022.

Are CBDCs catalysts for financial Innovation? How can the industry unlock the full potential of
CBDCs?

Key Takeaways from the session

Wholesale CBDCs have transformative potential to offer opportunities for new services and
efficiency improvements, but careful consideration of use cases and system design are
necessary.

By improving the payment landscape and infrastructure, the goal is to enhance accessibility
and provide solutions that enable people in developing markets to readily adopt them, thereby
effectively addressing the problem of low adoption rates of CBDCs in emerging markets.

Offline CBDC solutions are important for emerging markets with limited smartphone
penetration to ensure inclusion and accessibility.

Central bank involvement is crucial for maintaining trust and confidence in the financial
ecosystem, and its role in CBDCs are monetary policy implementation, liquidity management
and much more, which are beyond just technical implementation.

Collaboration and knowledge sharing among central banks and industry players, facilitated by
organisations like the BIS innovation hub, are considered vital in navigating uncharted territory
and advancing CBDC projects.

“There is no future of money and future of payments if the central bank itself is not part of it.
Central banks can bring in confidence and trust in the financial ecosystem of countries and the
entire world.”
Speakers

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 Notes from Point Zero Forum 2023

State of Global Digital Asset Regulation:

Navigating Opportunities in an Evolving
Landscape
Over the previous year, the crypto sector has experienced remarkable peaks, albeit marred by
significant downturns, such as the collapse of crypto companies. These issues cannot be attributed
to the inherent nature of crypto assets or blockchain technology, but they serve as a stark reminder of
the imperative for comprehensive regulatory policies and oversight across international borders.

How to navigate the opportunities in this rapidly evolving digital asset landscape and foster the
development of digital asset regulation? How to create alignments among regulators to promote the
responsible growth of digital assets?

Key Takeaways from the session

Identifying common parameters and high-level principles can facilitate the challenging task of
striving for functional equivalency in regulations across jurisdictions such as 27 member states
of the European Union.

The complexity of the digital asset space requires expertise from different regulatory bodies.
One important point raised was the need for not only international cooperation but also internal
domestic collaboration among regulators.

Balancing automation and risk management is important when regulating digital assets. And
the regulatory capacity needs to keep up with technological advancements.

Supervision, market conduct, and financial literacy should be addressed to protect customers
and ensure a well-functioning internal market.

Responsive data collection and monitoring present challenges in the context of cross-border
activities can harmonis regulations across different jurisdictions and the dynamic nature of
digital assets.

“A big issue is that we need to think about the lack of awareness and education in the US,
which is why we are approaching it with such a broad brush. And that's where I'd really like to
see some differentiation.”
Speakers
Speakers

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 Notes from Point Zero Forum 2023

Private vs Public Blockchain for

Institutional Use, What Will the Future
Look Like?
In the realm of blockchain technology, there exist two primary categories: private and public
blockchains. The former is commonly employed by organisations for internal purposes, whereas
public blockchain has been witnessing a surge in popularity owing to their decentralised structure that
can be accessed by any participants.

Institutions are exploring and implementing blockchain technology in their business models. Will the
future financial infrastructure be built on blockchain? Are public blockchains ready for institutional use
cases?

Key Takeaways from the session

Blockchain technology has the potential to revolutionise securities and financial markets by
increasing efficiency, reducing costs, and improving liquidity.

The adoption of public blockchains in the securities industry faces challenges related to
regulatory complexities and the need for legal framework clarity. Addressing operational
complexities and data privacy is crucial when utilising public blockchains.

Regulatory sandboxes can provide a space for institutions to experiment with the blockchain
while ensuring compliance with securities laws.

Public blockchains are still in the early stages of institutional use, and there are technological
and regulatory challenges to overcome for mainstream adoption.

Collaboration between regulators, technology providers, and market participants is vital for
overcoming barriers and fostering widespread blockchain adoption in the securities industry.

When we look at digital assets initiatives today, we just simply don't have enough manpower
who understand this space that can help us navigate these very intricate areas. To get these
journeys success, you need to bring a lot of people on board, not only just your technology.”

Speakers

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 Notes from Point Zero Forum 2023

The Great Debate: What is the Future of

Money?
There is always a debate on the future of money. Some argue that money's destiny is to become
digital, while some stand for the view that it is unlikely that cash will die out even in this digital
transformation. How does technology transform traditional banking and facilitate the efficiency of
transactions?

What are the potential impact of digital assets on the future of money? What are the pros and cons of
these emerging forms of digital currency?

Key Takeaways from the session

Technology can lower barriers to access payment but technology alone is not enough;
jurisdictional rules and regulations are necessary for scaling the adoption and enhancing user
protection.

While digital currencies can improve settlement finality and reduce payment costs,
complementary policies are required to address issues like trust and identity verification.

Blockchain and digital assets have the potential to enhance cross-border payments but their
liquidity and interoperability issues need to be addressed in the Financial Exchange market.

Comprehensive strategies are needed for a better digital money landscape and financial
inclusion, combining technology, policies, and infrastructure.

Digital financial literacy plays a significant role in empowering individuals especially in this era
with digitalisation disrupting our societies and economies.

“Gen Z, who are currently about 13 to 25 years old, their entry into the workforce is expected to
not only change the nature of how work is done but also drive much of the change in services
and delivery systems due to their digital native nature.”

Speakers

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 Notes from Point Zero Forum 2023

Interoperability and Regulatory

Compliance: Building the Future of
Digital Asset Infrastructure
The evolution of the digital assets market and its continued maturation require robust regulatory
compliance for risk management in the ecosystem. There is an increasing number of international
investors demanding digital assets, therefore, a reliable and secure market infrastructure is required to
meet the industry’s needs.

What is the current state of infrastructure and strategies for building the next generation of
settlement mechanisms? How to ensure interoperability in the new world of digital finance via
regulatory compliance?

Key Takeaways from the session

Recognising the need for disruption and innovation in the industry, while also acknowledging the
complexities and cultural barriers that can impede progress, can facilitate the task of striving for
functional equivalency in regulations across jurisdictions.

The significance of interoperability to ensure that different systems can interact with each other
effectively between blockchain and legacy systems.

Identifying the importance of proper governance and regulations is crucial in addressing

emerging risks in the decentralised world, particularly concerning data security and consumer
protection.
The industry needs to find a balance between disruptive innovation and maintaining the stability
and security of the financial system. This requires frameworks and standards for cross-border
transactions.

It is crucial to prioritise user experience and avoid the use of regulations as an excuse for
providing a subpar experience in the industry.

“The fundamental principle driving our approach should be leveraging technology and newering
value propositions for the clients rather than focusing solely on creating new asset types or
legal regimes.”

Speakers

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 Notes from Point Zero Forum 2023

Safekeeping Digital Assets:

Advancements in Custody Solutions for
Widespread Adoption
The world of digital assets continues to expand exponentially with different types such as crypto
assets, CBDCs, NFTs and stablecoins. Investors are looking for digital asset custodians that can
provide the same kind of secure and robust services that for traditional assets.

How to ensure the widespread adoption of digital assets by optimising the custodian services? What
is the latest advancements in digital asset custody? How can the industry adapt to meet the changing
needs from customers and institutions?

Key Takeaways from the session

Customers' key concerns revolve around security, transparency, and the optionality of their
digital assets. An increasing trend is noticed towards having more transparency and diversifying
counterparty risk, along with placing customers’ assets with regulated custodians.

As institutional adoption of digital assets grows, there's an increased demand for more fluid
fund flow and the potential for exchange settlement for capital efficiency. This is indicative of
the increasing requirement for multiple custodian options.

The potential of self-custody in the digital asset space is underscored as an area of focus for
innovation. It is viewed as a significant advantage of blockchain and digital assets.

While some jurisdictions have clear and constructive regulatory frameworks, the complexities
and cost of compliance can hinder the growth of blockchain companies, particularly those
operating in multiple jurisdictions.

Institutions with their access to social influence, capital, and talents, play a crucial role in
sustaining the digital asset experiments and developments, especially during economic
recessions.

“The key part is what are the main customer pain points - is the asset secure? Can I actually
see what's happening? Do I have optionality? Can I continue to keep my capital efficiency? This
leads to security, transparency, and interoperability.”

Speakers

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 Notes from Point Zero Forum 2023

Decentralised Finance and Traditional

Finance: Synergies for Advanced
Liquidity and Lending
TradFi provides the established regulatory framework with a higher security that DeFi lacks, while DeFi
offers a decentralised and inclusive financial system with more opportunities. What are the
approaches for business strategies, policy implications, and governance considerations in the DeFi
and TraFi landscape?

How can DeFi augment and improve TradFi through innovative solutions for liquidity, lending, and
asset management? What are the challenges and opportunities that arise from the convergence of
these two realms?

Key Takeaways from the session

There is growing interest in Decentralised Finance and Blockchain from traditional financial
institutions in Latin America and the Caribbean countries.

Partnerships and collaborations enable seamless integration of fiat and crypto assets,
ultimately leading to greater comfort and understanding for traditional financial institutions.

Identity verification remains a major challenge and friction point for institutions and
governments to embrace digital assets. Trust and security are crucial for the widespread
adoption of DeFi, with a focus on user experience and interoperability.

Regulators and traditional finance need to gain a better understanding of DeFi to foster
innovation in a regulated environment. Conversations play a vital role in driving the industry
forward.

Responsible innovation is becoming more prominent in the industry, with a shift towards
abstracting the complexity of technology for broader adoption. Legal, accounting, and
compliance aspects surrounding digital assets need further exploration and resolution.

“If we really want to take full advantage of the technology, for good, and to have an end goal,
the regulators, the capital providers, and the industry should align to create a more inclusive
financial system.”

Speakers

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 Notes from Point Zero Forum 2023

Digital Assets 2.0: Innovation in Crypto

Spring
The crypto industry has witnessed a resurgence in innovation in the form of use-cases and
applications. One of the main reasons for the potential comeback of cryptocurrency such as Bitcoin is
the increasing adoption by institutional players.

Is Crypto Spring coming in late-2023? Will the institutional use cases drive the growth of the Crypto
industry? What is the latest trends in digital assets from the perspective of innovation, investment,
regulation and emerging markets?

Key Takeaways from the session

The new demographic is increasingly sensitive about their data, especially in transactions.
Businesses need to adapt accordingly and think differently about providing services to
customers, considering this new cultural norm of data privacy.

The focus of cryptocurrency has shifted towards solving real-world problems, indicating
maturity in the sector. This practical emphasis is seen as a positive sign of development and a
key characteristic of the 'spring' phase.

The crypto market, while offering innovative solutions and increasingly investing in custodian
services, still lacks proper regulations and governance structures to manage counterparty risk.

The convergence of traditional financial expertise and the technological knowledge of the crypto
world is anticipated. This combination could lead to an improved, more efficient financial
system.

Challenges lie ahead, but there is optimism about the potential benefits of integrating
blockchain and crypto assets into financial services.

“It's not that Crypto Winter is bad and Spring is good. Winter is the time to regroup and build
foundations and get worked out. It's just a process that we need to go through. When we do
emerge into spring, the ecosystem as a whole will be better and stronger.”

Speakers

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 Notes from Point Zero Forum 2023

Conclusion
As the world accelerates towards an increasingly digitalised economy, not only the
necessity for a financial infrastructure capable of matching this pace is evident, but
public and private dialogue fostering the development and implementation of digital
finance is also inescapable.

It is important to ensure the end goal of digital finance is not to limit progress to
short-term gains or niche products, but to achieve broad societal transformation in the
financial system, a change propelled by innovation and technology.

The report demonstrates essential key takeaways from the discussions at Point Zero
Forum 2023 revolved around digital assets from the imminent need to address
fundamental challenges in the DeFi space, the anticipated convergence of traditional
financial mechanisms and blockchain technologies to the cooperation among
stakeholders across sectors.

The dialogues at Point Zero Forum spotlighted the vast potential of blockchain
technology beyond just the crypto space. The future of finance is innovation and
technology, but only responsive implementation and use cases can facilitate the growth
and adoption.

To navigate this transformation effectively, the implementation of interoperable

frameworks, the establishment of clear regulations, the responsive adoption of
technology, and the creation of industry alignment are critical.

Thank you to Point Zero Forum and those who organised it to facilitate the dialogue of
the future of finance between private and public sectors. Together, the cooperation and
alignments in the industry will contribute to the development of a robust financial future,
balancing stability with the exciting opportunities that come with innovation.

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 Notes from Point Zero Forum 2023

Disclaimer
The report is intended to provide a summary of the key insights derived from the Point
Zero Forum, with a specific focus on the subject of digital assets. The report
encompasses various aspects related to digital assets, including discussions on
CBDCs, digital asset regulation, digital asset wealth management, blockchain
technology, and decentralised finance.

It is important to note that while this report aims to capture the significant highlights
and essential points discussed during the Point Zero Forum 2023, it does not provide a
comprehensive account of the entire event.

Due to the breadth and depth of discussions held at the forum, it is possible that certain
topics, perspectives, or details may not be fully represented in this report. Additionally,
individual opinions expressed during the forum may not be reflected in this report, as it
aims to provide an overview of the general themes and trends discussed rather than
specific viewpoints.

Readers are encouraged to refer to additional sources, official event documentation, and
comprehensive reports to obtain a more comprehensive understanding of the
discussions and outcomes of the Point Zero Forum 2023. This report serves as a
concise summary and should not be considered as an exhaustive or authoritative
source of information regarding the forum.

For more information about Point Zero Forum

Point Zero Forum Website: https://www.pointzeroforum.com/

Elevandi Website: https://www.elevandi.io/

Swiss State Secretariat: https://www.seco.admin.ch/seco/en/home.html

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Appendix
Notes from Point Zero Forum 2023

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 Appendix

Researchers

Content and Research Marketing and Design

Huy Nguyen Trieu Paul Putscher

Co-founder Marketing and Partnerships Lead

Peng Yu Lin Peng Yu Lin

Fintech Research Analyst Fintech Research Analyst

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