## digital-money-101

## Source details

**Canonical URL:** [digital-money-101](https://www.imf.org/-/media/files/publications/fandd/article/2022/september/digital-money-101.pdf)

## Other formats

- [Markdown version](/-/media/files/publications/fandd/article/2022/september/digital-money-101.pdf.md)
- [Structured JSON version](/-/media/files/publications/fandd/article/2022/september/digital-money-101.pdf.json)

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### Key definitions
- UNBACKED CRYPTO ASSET: Also known as cryptocurrency, a private sector digital asset that depends primarily on cryptography and distributed ledger or similar technology.
- STABLECOIN: A crypto asset that aims to maintain a fixed value relative to a specified asset, or a basket of assets.
- DEFI (DECENTRALIZED FINANCE): A set of alternative financial markets, products and systems that use crypto assets and software known as smart contracts that are built using distributed ledger or similar technology.
- SECURITY TOKENS: Crypto assets that meet the definition of a security in the jurisdiction where they’re issued, marketed, transferred, exchanged, or stored.
- UTILITY TOKENS: Crypto assets that give holders a right to access a current or prospective product or service from the issuer or issuing network.
- E-MONEY: A stored monetary value or prepaid product in which a record of the funds or value available to the consumer for multipurpose use is stored on a prepaid card or electronic device like a computer or phone, and which is accepted as a payment instrument by other than the issuer (multipurpose use). The stored value represents a claim enforceable against the e-money provider to repay the balance on demand and in full.
- CENTRAL BANK DIGITAL CURRENCY (CBDC): Potentially a new form of digital central bank money that can be distinguished from reserves or settlement balances held by commercial banks at central banks. It is a central bank liability, denominated in an existing unit of account, which serves both as a medium of exchange and a store of value. CBDCs are not cryptoassets.
- DIGITAL ASSETS: A digital instrument issued or represented using distributed ledger or similar technology. This excludes digital representations of fiat currencies.
- DISTRIBUTED LEDGER TECHNOLOGY (DLT): A means of saving information through a distributed ledger, such as a repeated digital copy of data available at multiple locations. A database that’s stored, shared and synchronized on a computer network. Data is updated by consensus among the network participants. Blockchain is one example, but it doesn’t necessarily maintain its record using the same chain of blocks architecture.
- DIGITAL MONEY (thematic term appearing in source): DIGITAL MONEY

### Blockchain and distributed ledger
- A distributed ledger in which transaction details are held in blocks of information. A new block is attached to the chain of existing blocks via a computerized process that validates transactions.
- Blockchain is one example of distributed ledger technology, but it doesn’t necessarily maintain its record using the same chain of blocks architecture.

### Financial inclusion
- FINANCIAL INCLUSION: Individuals and businesses have access to useful and affordable financial products and services that meet their needs—such as transactions, payments, savings, credit, and insurance—and are delivered in a responsible and sustainable way.

### Classification summary
- The source distinguishes between:
  - Private sector crypto assets (unbacked crypto assets, stablecoins, security tokens, utility tokens, digital assets) and
  - Public sector digital money (CBDCs), noting explicitly that "CBDCs are not cryptoassets."
- DeFi is identified as an ecosystem built using DLT and smart contracts.
- E-money is defined by multipurpose stored value accepted as a payment instrument by parties other than the issuer and representing a claim against the e-money provider.

*Source: Financial Stability Board.*

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_Source: https://www.imf.org/-/media/files/publications/fandd/article/2022/september/digital-money-101.pdf_