Definition ∞ Tokenized currency represents fiat currency or other forms of value that have been digitized and issued as tokens on a blockchain. These tokens can facilitate faster, more efficient, and programmable transactions. They bridge traditional financial systems with the capabilities of distributed ledger technology.
Context ∞ The development of tokenized currencies, often referred to as stablecoins or central bank digital currencies (CBDCs), is a significant area of focus in finance and technology. Current discussions revolve around their potential to revolutionize payments, the regulatory frameworks governing their issuance, and their impact on monetary policy.
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