Move over Stablecoin. A new Token is coming

moneycontrol.com:

The world of digital cash is divided into two camps. The traditionalists want a public authority to remain in charge of providing a safe medium of exchange for people to settle claims against one another. Or else, they say, private money could become as unreliable as in the pre-US-Civil-War era of wildcat banking, when notes issued by a lender in Tennessee would be discounted by 20% in Philadelphia.

On the other hand, the experimentalists believe that excitement around central bank digital currencies, or CBDCs, is a fad — a bit like the 1980s “parachute pants.” As long as a nation has established a unit of account, it’s fine to step aside and allow the nonstate sector to come in with its own stablecoins, electronic representations of value pegged to the dollar, euro, yen, or the pound. Who needs the Federal Reserve to issue a digital dollar to compete with China’s e-CNY when there’s already Tether?

While there’s no resolution in sight to this public-private debate, there’s now a third element — deposit tokens. The germ of this idea got validated recently as part of Project Guardian, a collaboration between Singapore’s central bank and the financial industry to explore the economic potential of asset tokenization. JPMorgan Chase & Co. turned a Singapore dollar deposit into a digital asset, programmed it to trade only against some known wallet addresses and demonstrated that institutional-grade security is possible on a public blockchain.

Since nine-tenths of all money in circulation is bank deposits, the very possibility that all of them could potentially get behind “smart contracts” — self-executing software code that triggers exchange of monetary value when certain conditions are met — is a big deal.

Consider a