Definition ∞ Systemic digital money refers to digital currencies that have achieved such widespread adoption and interconnectedness within the financial system that their disruption or failure could pose a significant risk to overall financial stability. This category often includes large stablecoins or potential central bank digital currencies (CBDCs) if they become foundational to economic transactions. Their scale and integration mean their health is critical for the broader economy. It implies a level of importance that warrants close regulatory oversight.
Context ∞ Discussions about systemic digital money are prominent in reports from central banks and financial regulators worldwide, who are assessing the potential risks and benefits of digital currencies. News articles frequently address how the growth of certain stablecoins could lead to them becoming systemically important. Understanding this concept is crucial for interpreting policy debates and regulatory actions concerning the future of digital finance.
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