Definition ∞ Digital money policy encompasses the strategies and regulations established by central banks and governments regarding the issuance, distribution, and use of digital currencies. This includes considerations for central bank digital currencies (CBDCs), stablecoins, and other forms of electronic money. Such policies aim to manage monetary stability, financial inclusion, and consumer protection in an increasingly digital economic landscape. They address both the opportunities and potential risks presented by novel forms of currency.
Context ∞ Digital money policy is a prominent subject in global financial news, with many nations actively researching or piloting CBDCs and regulating private digital assets. Key debates revolve around privacy concerns, the role of commercial banks, and the potential for disintermediation. Future developments will likely involve international cooperation on interoperability standards and adapting policy frameworks to rapid technological advancements in digital payment systems.
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