Tokenized Money

Definition ∞ Tokenized money represents a digital form of traditional fiat currency or other monetary value issued on a blockchain or distributed ledger. This includes stablecoins, which are typically pegged to fiat currencies, and central bank digital currencies. It aims to combine the benefits of digital programmability with the stability of conventional money. It facilitates efficient digital transactions.
Context ∞ Tokenized money, particularly stablecoins and central bank digital currencies, is a major focus in global financial news, impacting discussions on monetary policy, financial stability, and payment systems. Central banks worldwide are researching and piloting CBDCs to modernize national currencies and improve cross-border payments. Regulatory frameworks for stablecoins are also rapidly developing to address systemic risks and consumer protection. This represents a significant evolution in the nature of money.