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The Battle between Stablecoins and Tokenised Deposits

Bank of England policymaker Megan Greene predicts tokenised deposits will overtake stablecoins within five years, though the two may ultimately serve different purposes. While tokenised deposits upgrade the existing regulated banking system, stablecoins provide open infrastructure and access to stable currency for users outside traditional banking, particularly in emerging markets.

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Why It Matters

The competition between tokenised deposits and stablecoins defines whether the future of digital money will be an upgrade to existing financial institutions or an open, less-permissioned ecosystem.