Beyond Digital Assets: What is Next for Money and Payments?

The digital transformation of money emerges as the link between the public and private power in exercising the monetary function. The layered solution of a monetary system based on disintermediation alters monetary policy transmission radically. By introducing digital assets, the role of seigniorage may change, potentially affecting the regulatory policy of the financial system. Together with seigniorage come interoperability, finality, and sovereignty as a result. However, given the resiliency of the DLT, the effectiveness of such measures has to be carefully explored in terms of both the regulation and the efficiency of the market and payments system. Otherwise, the risk is building a scenario worse than the existing one.