Committee on Payments and Market Infrastructures Develops Criteria for Wholesale Digital Tokens
Drishti Bhagat Dec 13, 2019 03:15
A new report reveals that the CPMI will list out a criterion for the design of wholesale digital tokens in terms of their usage in whole transactions.
A new report reveals that the Committee on Payments and Market Infrastructure (CPMI) has panned out a list of criteria for market participants to re-evaluate when designing digital tokens in terms of their utility in wholesale transactions. The wholesale digital tokens report identifies the prospective innovations and design questions on digital tokens that could be used to find a solution to wholesale or large payments, which are now available by recent technology such as blockchain or distributed technology.
Moreover, private developers are investigating several applications for wholesale digital tokens. In the duration of this time, the development could be helpful to make payments, and a range of initiatives also seek to provide the funding of tokenized securities and FX transactions, whereby a token constitutes a share, bond, or other financial assets.
The Chairman of the CPMI has elaborated on the report, "This report outlines useful considerations for token designers. However, there is no single roadmap for success. Success will depend on whether wholesale digital tokens can provide both improved safety and increased efficiency over the traditional account-based settlement assets used today."
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