Four forms of digital money

Why money is no longer only fiat

Source: Richard Turrin via ‘X’

Money isn’t only just fiat currency any more. The rapid intertwining of the fiat currency worlds and cryptocurrency worlds this decade has led to the emergence of new forms of digital money, such as CBDCs, tokenised deposits, and fiat decentralised stablecoins, as highlighted above. We can see the influence of crypto rubbing off on other asset classes that are by nature, fiat-based. For example, although CBDCs are strictly the liability of the Central Bank, several CBDC pilots are currently leveraging distributed ledger technology, which is the technology architecture that blockchains are created from. You can be reminded of our in-depth on CBDCs here.