Stablecoins versus tokenised deposits: implications for the singleness of cash

Rodney Garratt and Hyun Tune Shin in this BIS bulletin:

Personal tokenised monies that flow into as bearer devices, like stablecoins, might entail departures of their relative trade values away from par in violation of the “singleness of cash”. In distinction, tokenised deposits that don’t flow into as bearer devices however somewhat settle in central financial institution cash are extra conducive to singleness. Tokenised deposits might allow expanded performance by constructing on the capability of programmable ledgers to introduce contingent execution and composability of transactions.

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