Regulated Payment System

Definition ∞ A regulated payment system is an infrastructure that facilitates financial transactions under the oversight and control of governmental or monetary authorities. These systems adhere to specific legal and operational standards designed to ensure security, stability, and consumer protection. Examples include traditional banking networks and national payment gateways. They operate with strict compliance requirements.
Context ∞ The emergence of digital currencies and stablecoins has prompted significant discussions about their potential integration into, or impact on, existing regulated payment systems. Central banks worldwide are exploring Central Bank Digital Currencies (CBDCs) as a way to combine the benefits of digital assets with the stability and oversight of traditional systems. News frequently covers policy debates and pilot programs aimed at modernizing payment infrastructures while maintaining regulatory integrity.