Impacts of Asset Tokenization on the Cross-Border Financial System and Monetary Sovereignty Governance

This paper examines how real-world asset (RWA) tokenization and stablecoins reshape cross-border capital flows and challenge traditional monetary sovereignty governance. Through a comparative analysis of China, the United States, the EU, Hong Kong, and Singapore, it identifies three regulatory pathways and reveals an inverted U-shaped relationship between regulatory stringency and innovation performance. The study proposes a "Benevolent Regulation" framework and an Automated Benevolent Regulation (ABR) model to explain how technology-integrated, public-interest-oriented regulation can achieve a dynamic balance between financial stability and innovation in the era of digital finance.