Unremunerated Deposits

Definition ∞ Unremunerated deposits are funds held by a financial institution or platform that do not earn any interest or yield for the depositor. These deposits typically represent capital that is either held for operational liquidity, regulatory compliance, or as a security measure without generating any financial return for the account holder. In the digital asset space, this might apply to certain types of collateral or funds held in non-interest-bearing accounts on exchanges or decentralized protocols. The lack of remuneration means the depositor foregoes potential earnings.
Context ∞ In crypto news, discussions about unremunerated deposits often arise in the context of regulatory proposals or platform policies that require users to hold funds without earning interest, particularly for stablecoin reserves or custodial services. Central banks are also considering how unremunerated deposits might function within central bank digital currency (CBDC) frameworks to manage monetary policy and prevent disintermediation of commercial banks. The implications for user incentives and the overall efficiency of capital are frequently debated.