Release of a special chapter of the BIS Annual Economic Report 2023:
Blueprint for the future monetary system: improving the old, enabling the new
The chapter lays out a blueprint for the future monetary system underpinned by central bank digital currency, thus opening up a new era in the joint development of the monetary system and the economy.
Key takeaways
- Tokenisation of money and assets has great potential, but initiatives to date have taken place in silos without access to central bank money and the foundation of trust it provides.
- A new type of financial market infrastructure – a unified ledger – could capture the full benefits of tokenisation by combining central bank money, tokenised deposits and tokenised assets on a programmable platform.
- As well as improving existing processes through the seamless integration of transactions, a unified ledger could harness programmability to enable arrangements that are currently not practicable, thereby expanding the universe of possible economic outcomes.
- Multiple ledgers – each with a specific use case – might coexist, interlinked by application programming interfaces to ensure interoperability as well as promote financial inclusion and a level playing field.
The full publication is available at https://www.bis.org/publ/arpdf/ar2023e3.htm