Achieving Uniformity of Tokenized Money Through Smart Contracts

This white paper discusses the concept of uniformity in money within the context of digital assets, specifically focusing on the interplay between central bank digital currencies (CBDCs), tokenized deposits, and stablecoins. It outlines the necessity for maintaining the value of money across various digital formats, emphasizing the role of central banks in this evolving landscape. The paper presents a model that allows for free convertibility between fractionally-backed tokenized deposits and fully-backed stablecoins, governed by central bank regulations. It includes smart contract logic to operationalize this model and demonstrates its feasibility through video examples. Additionally, the paper touches on the implications for commercial banks and fintechs, suggesting that this framework could enhance competition while ensuring the stability of digital currencies. Privacy considerations are mentioned as an area for future exploration. The document aims to provide insights for central banks and financial institutions regarding the future of money in a digital economy.