## Digital Tokens: A Legal Perspective

_IMF Working Papers, July 28, 2023_

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## Bibliographic details
- Authors: José M. Garrido
- Published: July 28, 2023
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400250149.001

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### Summary
- Tokens are units digitally represented in a distributed ledger or blockchain.
- The paper examines how tokens compare to traditional legal instruments in commercial law.
- It assesses how tokens could offer superior solutions if proper legal foundations are established, including aspects of the law of securities and consumer protection law.

### Major findings and analysis
- Tokens have the potential to transform a wide array of economic activities, from traditional commercial transactions to sophisticated financial undertakings.
- The paper explores similarities and differences between tokens and traditional legal instruments in commercial law.
- Emphasis on the need to align token functionality with existing legal categories (for example, securities law) and consumer protection frameworks to enable reliable operation and legal certainty.

### Policy implications and recommendations
- Establish proper legal foundations for token operation covering:
  - aspects of the law of securities
  - consumer protection law
- Legal and regulatory clarity is implied as a precondition for tokens to deliver superior commercial and financial solutions.

### Publication and metadata
- Author: José M. Garrido
- Date: July 28, 2023
- Series: Working Paper No. 2023/151
- Issue: 151
- Volume: 2023
- Pages: 67
- DOI: https://doi.org/10.5089/9798400250149.001
- Stock No: WPIEA2023151
- ISBN: 9798400250149
- ISSN: 1018-5941
- Subject: Blockchain and DLT, Financial institutions, Financial regulation and supervision, Securities, Securities regulation, Smart contracts, Technology, Virtual currencies
- Keywords: aspects of the law of securities, Blockchain and DLT, Commercial Law, Consumer Protection, del Mercado de Valores, digital signature, Fintech, Global, non-fungible token, Securities, Securities Law, Securities regulation, Smart contracts, token offering, token taxonomy, Tokens, Virtual currencies

*Source: IMF Working Paper "Digital Tokens: A Legal Perspective" by José M. Garrido, July 28, 2023.*

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_Source: https://www.imf.org/en/publications/wp/issues/2023/07/28/digital-tokens-a-legal-perspective-537041_