The Role of Deposits in a Tokenised Monetary and Financial System

Deposits are a key pillar of the existing two tier monetary system. With tokenisation of money and assets gathering pace, how do we preserve that role in a tokenised monetary and financial system? How do they fare in comparison to other forms of money such as stablecoins? This opening keynote examines the evolution of the role of deposits, evaluates the case for tokenised deposits continuing to underpin the tokenised monetary system, compares them with alternative forms of money such as stablecoins and provides a vision for how tokenised deposits, working in concert with tokenised central bank money and assets, can transform the monetary and financial system delivering greater efficiency, reduced operational risks, delays and costs, and promote greater financial inclusion.