Stablecoins versus tokenised deposits: implications for the singleness of money

Key takeaways

• Private tokenised monies that circulate as bearer instruments, like stablecoins, may entail departures in their relative exchange values away from par in violation of the "singleness of money".
• In contrast, tokenised deposits that do not circulate as bearer instruments but rather settle in central bank money are more conducive to singleness.
• Tokenised deposits may enable expanded functionality by building on the capacity of programmable ledgers to introduce contingent execution and composability of transactions.