Digital Money Perspective on Stablecoins and CBDCs

This white paper provides a comprehensive examination of the evolving landscape of digital money, focusing on stablecoins, tokenised deposits, and central bank digital currencies (CBDCs). It outlines the implications of these developments for financial institutions and corporate treasury operations. The document begins by defining the current money landscape, distinguishing between public and private digital money, and explaining the core functions of money. It further details the characteristics and regulatory frameworks surrounding stablecoins, emphasizing their role as a bridge between traditional finance and blockchain ecosystems. The paper also discusses tokenised deposits and their potential to enhance existing banking models, alongside the exploration of CBDCs by central banks. It highlights the collaborative efforts between financial institutions and regulators to create a more integrated and efficient digital payment infrastructure. The conclusion addresses the practical impacts of these changes on corporates and custodians, underscoring the importance of adapting to a continuously evolving digital economy.