Episode 10: The regulated Internet of Value

In this episode, Tony McLaughlin outlines a network on which different forms of money that we already know today can be transferred as tokens issued on distributed ledgers. These different monies are all “regulated liabilities” and include commercial bank money, electronic money, and central bank money. A network that tokenizes regulated liabilities on the same chain may deliver a next generation digital money format with the benefits of DLT but without the downsides of currently discussed digital money forms such as stablecoins or CBDCs.

As DLT has the potential to represent multiple forms of digital value, we might go further and envision the creation of networks that tokenize regulated liabilities and regulated assets on the same chain. Such a network would be significantly different from today’s siloed financial architecture: It would embody all types of tokenized assets and money in an ‘always on’, programmable and global network — a regulated internet of value.

Private Sector and Digital Euro

How do current forms of money differ from cryptocurrencies?
Which efficiency gains does tokenization of money and assets promise?
What are the limiting factors of currently discussed forms of tokenized money?
How can currently existing forms of money be represented on a DLT?
Which processes need to be included in order to be able to transfer these tokenized monies?
Which benefits will the regulated internet of value bring?

Participants of the episode

Tony McLaughlin, Emerging Payments and Business Development, Treasury and Trade Solutions (Citi)
Manuel Klein, Co-founder and member, Digital Euro Association (DEA)
Location and Date