Digital Cash Settlement

Definition ∞ Digital Cash Settlement refers to the final and irrevocable transfer of value using digital forms of money, often on a distributed ledger technology platform. This process concludes a financial transaction, ensuring that the payee receives funds and the payer’s account is debited. It contrasts with traditional settlement processes that may involve intermediaries and take longer to finalize. The method offers speed, transparency, and reduced counterparty risk.
Context ∞ News frequently highlights digital cash settlement in discussions about central bank digital currencies, stablecoins, and the modernization of payment systems. Reports often focus on its potential to accelerate cross-border payments and reduce operational costs for financial institutions. The adoption of such settlement mechanisms is a key area of interest for regulators and market participants seeking greater efficiency in financial markets.