A foundation for stable digital money
Ongoing progress in developing blockchain technologies for commercial applications is creating demand for blockchain native “cash equivalents” that act as liquid means of payment and stores of value in blockchain-native environments. Stablecoins have predominately met this demand to date. However, the foreseeable adoption of blockchain for complex commercial transactional activity, including institutional activity, has brought into focus the question of what form of digital money may be needed to continue to support blockchain payments at scale. Deposit tokens and central bank digital currencies (CBDCs) in particular have come to the forefront in examining the optimal future state of digital money.