Inside Digital Currency

In modern monetary systems most money is created by commercial banks; we review how private money in the form of deposits circulates and discuss its possible tokenization. We show that a compelling case for the tokenization of bank deposits exists irrespective of the debate regarding central bank digital currencies (CBDCs). The proposed approach can be decoupled from the introduction of digital versions of central bank money - of both cash and account-based reserves - by preserving interoperability