The International Monetary Fund published a Fintech Note setting out a legal framework for countries considering token-based central bank digital currencies. It finds that these currencies constitute a new form of money under private law and require clear rules to support their circulation, preserve holders’ direct claims on the central bank and protect them if wallet providers become insolvent. The legal classification of a token-based CBDC as a hybrid asset, a new sui generis category or a novel intangible would determine how ownership is evidenced and how the currency can be transferred, held in custody, deposited with banks, lent or pledged. Countries should also clarify transfer finality, good-faith acquisition, offline transactions, omnibus holdings and cross-border choice-of-law issues. Contractual arrangements may address some gaps, but most jurisdictions will likely need comprehensive legislation and international coordination to provide a predictable framework.
2025-03-14International Monetary Fund
International Monetary Fund outlines private law framework for token-based central bank digital currencies
The International Monetary Fund outlined a private law framework for token-based central bank digital currencies, covering ownership, transfers, custody, banking uses, insolvency and cross-border issues. It concludes that most jurisdictions will likely need comprehensive legislation to preserve holders’ direct claims on central banks and provide legal certainty.