Classifying Tokenised Money: Dimensions and Design Features

TL;DR

This paper introduces a taxonomy of tokenised money, categorizing various digital monetary instruments based on twelve key design dimensions to clarify their differences and implications.

Contribution

It presents a systematic framework for comparing diverse tokenised money forms, enhancing clarity in analysis, policy, and regulation.

Findings

Developed a taxonomy with twelve key dimensions

Clarified how design choices affect monetary properties

Facilitates better comparison and understanding of tokenised money

Abstract

Tokenised money encompasses a broad range of digital monetary instruments issued on distributed ledger technology, including Central Bank Digital Currencys (CBDCs), deposit tokens, stablecoins, and decentralised protocol-based designs. Despite their shared monetary function, these instruments differ markedly in issuer structure, collateralisation, stability mechanisms, governance, and technological embedding, creating conceptual ambiguity. This paper proposes a concise taxonomy spanning twelve key design dimensions, offering a systematic framework for comparing heterogeneous forms of tokenised money. The taxonomy clarifies how different design choices shape monetary properties, risks, and policy implications, supporting clearer analysis and dialogue across academia, industry, and regulation.