Where is Digital Money Heading in 2023?

Thursday 2nd March 2023 | 12:00 pm (UK)

Nowadays, it seems everything can be tokenized, from securities to real estate, commodities to equity. More recently, in response to retail CBDCs and stablecoins, tokenising bank deposits has emerged as a new form of money based on commercial bank money.

In Session #9 of the FMI Broadcast, guests Keith Bear (University of Cambridge) and Philip Enness  (JP Morgan)  joined FNA to explore the motivations, benefits, challenges and main issues that arise from the tokenization of bank deposits. We discussed how the issuers of tokenized deposits, namely licensed depositary institutions, could become challenger FMIs aimed at issuing a new form of money.

The session covered:

• An introduction to the new concept of Tokenized Deposits
• The advantages and opportunities that Tokenized Deposits offer
• The risks associated with deposit tokenization and who bears the risk
• JP Morgan Coin as a live case of deposit tokens
• Whether deposit tokens are complementary to CBDCs but an answer to stablecoins issued by non-banks
• Whether licensed depository institutions issuing deposits could be considered as FMIs and whether they should be regulated as banking institutions
• CDBCs, Stablecoins and deposit tokens, what does the future look like?

Watch now: 

Resources and Links: 

Bank for International Settlements: Committee on Payments and Market Infrastructures: Application of the Principles for Financial Market Infrastructures to stablecoin arrangements Read more > 

Oliver Wyman: Deposit Tokens: A Foundation for Stable Digital Money Read more > 

German Banking Industry Committee: Working Paper on Commercial Bank Money  Read More > 

Session #9 Guests

		Keith Bear Fellow at the Centre for Alternative Finance, Judge Business School, University of Cambridge. University of Cambridge
		Philip Enness Global Head of BD, JPM Coin, J.P.Morgan JP Morgan

Missed our previous sessions? Watch the series on-demand

	The FMI Broadcast: 26th January 2023 The operational Resilience of Decentralised Payment Systems in Wholesale Banking With: Keith Bear (Cambridge University) and Philip Enness (JP Morgan) Watch Now >
	The FMI Broadcast: 26th January 2023 The operational Resilience of Decentralised Payment Systems in Wholesale Banking With: Patrick Papsdorf (ECB) and Claudine Hurman (Banque de France) Watch Now >
	The FMI Broadcast: 25th January 2023 A global standard for payment messaging- everything you need to know about ISO 20022 With: Saskia Devolder (SWIFT) and John Jackson (Bank of England) Watch Now >
	The FMI Broadcast: 10th November 2022 The Relevance of Liquidity Savings in a Real-Time world With: Richard Dzina (The Clearing House) & Stephen Wojciechowicz (Bank of New York Mellon) Watch Now >
	The FMI Broadcast: 22nd September 2022 Saving Liquidity with Cross-Border Payments With: Jan Schoombee (Fnality International) Watch Now >
	The FMI Broadcast: 30th August 2022 How Challenger FMIs are revolutionizing Cross-Border Payments With: Phil Mochan (Nomos Digital) and Claudio Cersesani (DGT Solutions) Watch Now >
	The FMI Broadcast: 23rd June 2022 How Challenger FMIs are revolutionizing Cross-Border Payments With: Kazım Rıfat Ozyılmaz (Arf) and Dave Sissens (RTGS.Global) Watch Now >
	The FMI Broadcast: 25th May 2022 The Bank of England’s RTGS CHAPS Renewal Programme With: John Jackson (Bank of England) & James Southgate (Bank of England) Watch Now >
	The FMI Broadcast: 27th April 2022 The FMI Ecosystem: Recent Developments and the Road Ahead With: Dr Kimmo Soramäki (FNA) & Dr Carlos León (FNA) Watch Now >