BISness BIS Media Briefing - The next-generation monetary and financial system
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Jun 25, 2025 Hyun Song Shin, Head of Research at the Bank for International Settlements (BIS), and Andréa M Maechler, Deputy General Manager of BIS, delve into the future of money. They discuss the transformative effects of tokenization in banking, highlighting Project Agora's role in enhancing correspondent banking efficiency. The guests explore the impact of stablecoins versus central bank digital currencies, addressing regulatory challenges. Governance complexities are examined as they navigate the integration of new monetary systems and the ongoing evolution of digital finance.
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Elasticity Key in Tokenized Deposits
- Central bank money tokenized deposits ensure singleness and integrity via trusted intermediaries.
- Elasticity is critical for timely payments and gridlock prevention, which stablecoins cannot provide as they require pre-funded backing.
Tokenization Enhances Payment Efficiency
- Tokenized platforms combining central bank reserves with tokenized deposits enable atomic settlement and multi-currency interoperability.
- Using new tech grounded in traditional principles improves cross-border payment efficiency while maintaining regulatory governance.
Governance Integral to Tokenized Platforms
- Project Agora balances programmability with governance, ensuring central banks retain final control over their currency on tokenized platforms.
- Designs range from layered to subnet architectures to safeguard data and maintain oversight.