The future of digital money in financial markets

Innovative payments solutions are enabling the exploration and testing of new forms of commercial and central bank money. With the growth of distributed ledger technology and its impact in the wider financial system and markets, stakeholders are considering how best to achieve efficiencies in scalability, finality and security in the settlement process, when compared to centralised architectures and the associated risks and challenges that may arise.

Knut Sandal, director, payments analysis and innovation, and Peder Østbye, director of analysis at Norges Bank, join OMFIF to discuss the settlement role of central banks should stablecoins gain broader traction. We explore how sustained growth in central bank digital currencies, stablecoins and tokenised bank deposits could ultimately impact traditional financial markets and consider what can be achieved with appropriate institutional safeguards, regulations and technical advancements for these new forms of money.