Stablecoins Versus Tokenised Deposits: Implications for the Singleness of Money

BIS Bulletin No 73, 2023, ISBN: 978-92-9259-650-7

9 Pages Posted: 22 May 2023

See all articles by Rodney Garratt

Rodney Garratt

Bank for International Settlements (BIS)

Hyun Song Shin

Bank for International Settlements (BIS)

Date Written: April 11, 2023

Abstract

Private tokenised monies that circulate as bearer instruments, like stablecoins, may entail departures in their relative exchange values away from par in violation of the “singleness of money”. In contrast, tokenised deposits that do not circulate as bearer instruments but rather settle in central bank money are more conducive to singleness. Tokenised deposits may enable expanded functionality by building on the capacity of programmable ledgers to introduce contingent execution and composability of transactions.

JEL Classification: E42, E51, G28

Suggested Citation

Garratt, Rodney and Shin, Hyun Song, Stablecoins Versus Tokenised Deposits: Implications for the Singleness of Money (April 11, 2023). BIS Bulletin No 73, 2023, ISBN: 978-92-9259-650-7, Available at SSRN: https://ssrn.com/abstract=4430692

Rodney Garratt

Bank for International Settlements (BIS) ( email )

Hyun Song Shin (Contact Author)

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

HOME PAGE: http://www.bis.org/author/hyun_song_shin.htm

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