In the Deutsche Bundesbank’s July monthly report, the central bank explored digital money, including central bank money, tokenized deposits and stablecoins. While tokenized deposits only received a few paragraphs of attention, it was sufficient to create uncertainty.
Many banks consider tokenized deposits as legally equivalent to bank deposits. According to the Bundesbank they may or may not be considered a deposit. Depending on the design, it could be an e-money token under MiCA regulations or a tradable security. It also notes it “remains unclear whether tokenized deposits would be covered by deposit insurance.”
Most of the essay focuses on the need for central bank money to settle DLT transactions. However,the central bank has a conservative, or not particularly upbeat view of DLT.
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