Key takeaways
- Stablecoins can provide programmable digital settlement in selected use cases.
- CBDCs and tokenised deposits may offer alternative forms of regulated digital money.
- AML, sanctions, liquidity, redemption and governance remain fundamental.
The debate around digital money often focuses on technology. The more important question for financial institutions is how the technology interacts with regulation, liquidity and customer protection.
Stablecoins, CBDCs and tokenised deposits each have different risk and governance models. Their usefulness for cross-border payments will depend on how easily they can connect to regulated financial institutions and existing payment infrastructure.
Digital settlement is therefore likely to evolve alongside, rather than completely replace, banking and payment systems.
CCPI note: This article is an independent professional perspective for information and discussion. Regulatory, legal and tax matters should be verified against the latest official requirements and, where appropriate, with qualified professionals.