Tokenization in the context of money could impact Central Banks' roles in payments, monetary policy, and financial stability, says BIS report to G20 Brasil 2024, highlighting both benefits and challenges.

The Bank for International Settlements (BIS) published a report to the Brazilian G20 Presidency in October 2024 on how tokenisation could affect money, payments, and the wider financial system. The report says token arrangements can change existing market structures by moving financial assets and payment processes onto programmable platforms, which may lower transaction costs and enable new use cases. At the same time, the BIS argues that tokenisation raises important questions for central banks, especially around payments, monetary policy implementation, and financial stability. The report highlights four main areas for central banks to consider: how to respond to private-sector tokenisation initiatives, how to balance different settlement assets, how to regulate and oversee token arrangements, and how tokenisation could alter the demand for central bank money or the functioning of regulated markets. The significance of the report is that it frames tokenisation not just as a market innovation, but as a potential structural change in how money and financial infrastructure operate.

✨ AI-generated background, compiled from web sources — not editorial content.

More coverage

• BIS Highlights Tokenisation Considerations for Central Banks (marketsmedia.com)
• Tokenized Finance in: IMF Notes Volume 2026 Issue 001 (2026) (elibrary.imf.org)
• [PDF] Asset Tokenization in Financial Markets: The Next Generation of ... (reports.weforum.org)
• BIS: Tokenisation in the context of money and other assets - CMS.law (cms.law)
• [PDF] The Financial Stability Implications of Tokenisation (fsb.org)

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