Digital stored value represents monetary value held electronically on a device or in a digital system. This concept refers to funds or assets represented in a digital format, capable of being transmitted, stored, and used for payments or other financial transactions without necessarily being tied to a traditional bank account at the point of use. Examples include balances on prepaid cards, mobile wallets, or certain cryptocurrencies and stablecoins. The integrity and transferability of digital stored value are dependent on the underlying technological infrastructure and security protocols.
Context
Digital stored value is a fundamental concept in the evolution of digital payments and central bank digital currencies, as well as private stablecoins. A key debate involves the regulatory classification and oversight of various forms of digital stored value, particularly concerning consumer protection and financial stability. Critical future developments include the global harmonization of regulations for digital stored value instruments and the increasing integration of these forms of value into everyday commerce.
The UAE's new federal decree eliminates the "code is not a shield" defense, mandating CBUAE licensing for all on-chain financial services by September 2026.
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