During today’s BIS Innovation Summit, two central bankers discussed bank deposit tokens as the heart of future money. Ravi Menon, who leads the Monetary Authority of Singapore (MAS), called the current banking system ‘archaic’ in its settlement processes.
He sees a continuation of the current two-tier monetary system in a digital currency world. Central bank digital currency (CBDC) will be at the core, and commercial bank deposit tokens will make up the bulk of digital currency money.
He mentioned a potential third leg in stablecoins, but he is not convinced about how they can be securely backed. The USDC stablecoin lost its peg the day before the session was recorded on March 12 because of the failure of the Silicon Valley Bank. Nonetheless, Menon acknowledged that stablecoins could add to the diversity of the system. This digital currency monetary system will coexist with the current one.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
