Digital Money Framework

Definition ∞ A digital money framework constitutes a comprehensive set of policies, regulations, and technological standards governing the creation, distribution, and use of digital currencies. This framework typically addresses aspects such as consumer protection, financial stability, data privacy, and anti-money laundering compliance. It provides the necessary legal and operational structure for digital money systems, whether centralized or decentralized. Establishing such a framework is critical for integrating digital assets into the broader economy.
Context ∞ Governments and central banks globally are actively exploring and developing digital money frameworks, particularly concerning central bank digital currencies (CBDCs) and stablecoins. News often reports on different nations’ progress in defining these frameworks, highlighting varying approaches to regulation and innovation. The implementation of a robust framework aims to manage payment system risk and promote economic efficiency.