IMF examines coexistence of bank deposits, stablecoins, and central bank money in tokenized finance and their impact on system stability.
DeFi & Yields ·
The International Monetary Fund has examined how bank deposits, stablecoins, and central bank money can operate together within tokenized financial systems. The research suggests that multiple forms of digital currency may coexist in such frameworks, though the particular architectural and regulatory choices made during implementation will prove consequential for both system stability and public trust in these arrangements.
The IMF's analysis centers on tokenization—the process of converting financial assets and instruments into digital token form on distributed ledgers. The interaction between different classes of digital money (traditional bank liabilities, privately issued stablecoins, and central bank digital currencies) creates design questions about how each form functions, which entities issue or back them, and how they relate to one another operationally.
The IMF's research does not yet detail specific policy recommendations or quantify risks across different design scenarios. It remains unclear which architectural approaches the institution views as most stable or trustworthy, or how regulatory frameworks should differentiate between the three forms of digital money in practice.