From the BIS’s Project Pine to Japan’s retail pilot, central banks are exploring how blockchain and smart contracts could enhance monetary policy.
Central banks are tiptoeing into the world of blockchain not because it is fashionable but because every part of the money-making machine, from settlement rails to asset custody, is slowly being rewritten as code.
The financial industry is already tokenizing money-market funds, Treasurys and even bank deposits. According to the Atlantic Council, 134 jurisdictions are studying or piloting a central bank digital currency (CBDC), up from just 35 in 2020.
