Tokenised Public Money: The Foundation of the Future Financial System

By Dr. Wolfram Seidemann, CEO G+D Currency Technology at Giesecke+Devrient

The global financial system is entering a decisive phase of transformation. What began as digital experimentation is now rapidly maturing into a new monetary architecture built on tokenised forms of money: wholesale and retail CBDCs, regulated stablecoins, and tokenised commercial bank deposits.

For central banks, fintech innovators, and commercial banks alike, this shift is far more than a technical evolution, it is a strategic re-design of how public and private money will coexist and operate in an increasingly digital economy.

Public money as the anchor of stability in tokenised finance

Experience from global pilots and industry collaboration shows a clear pattern: tokenised public money is indispensable for stability.

Even in today’s account-based system, central bank money anchors trust and acts as the reference point for value. In a tokenised environment, where assets, payments, and data move across decentralised, multi-chain infrastructures, this anchoring role becomes critical.

Without a universally accepted, risk-free settlement asset, tokenised markets risk fragmentation, private tokens may not consistently trade at par, and large issuers could form closed ecosystems that limit competition and user choice. A well designed CBDC provides an effective remedy by ensuring interoperability, preserving the singleness of money, and maintaining monetary unity across platforms and jurisdictions.

“Without a universally accepted, risk-free settlement asset, tokenised markets risk fragmentation.”

Driving settlement innovation for future infrastructures

Among emerging forms of digital money, wholesale CBDCs have become the most compelling foundation for next-generation market infrastructures. As tokenised versions of central bank reserves, they enable atomic and near real-time settlement with significantly reduced counterparty risk. They streamline operational workflows and support more efficient liquidity and collateral management.

Across jurisdictions, pilots have demonstrated that wholesale CBDCs can support both delivery-versus-payment and payment-versus-payment settlement, enable multichain interactions, and integrate seamlessly with tokenised deposits and regulated stablecoins. This creates a coherent settlement layer in which public and private digital monies can interact securely and efficiently.

Unlocking value through a layered monetary architecture

This momentum is paving the way for a layered tokenised monetary architecture. At its core, wholesale CBDC is digital central bank money that provides foundational public infrastructure for secure settlement and supports seamless interoperability with private forms of money, such as regulated stablecoins, where permitted, and tokenized commercial bank deposits. This layered approach preserves the strengths of today’s two-tier financial system while enabling efficiency gains and fostering new services and business models.

The benefits of this architecture are substantial for all stakeholders. Central banks can enhance monetary sovereignty, safeguard the stability and integrity of core settlement infrastructures, and gain new levers for policy transmission. Commercial banks can expand into new digital asset services, develop more efficient cross-border payment solutions, and embed financial services directly into digital ecosystems without risking disintermediation. Technology providers and fintechs gain a harmonised infrastructure in which innovation can flourish on top of trusted public money.

“Wholesale CBDCs have become the most compelling foundation for next-generation market infrastructures, enabling atomic and near real-time settlement with significantly reduced counterparty risk.”

Frictionless future: introducing the unified digital currency system

Building on this layered model, an increasing number of central banks are exploring a Unified Digital Currency System – an approach in which wholesale and retail CBDC are issued as the same token on a shared infrastructure. Instead of operating separate technological systems, the unified platform defines different access tiers - wholesale and retail - governed by policy rather than technology.

This preserves the singleness of public money while ensuring native interoperability across all use cases. Crucially, it gives central banks full flexibility in defining limits, functionalities, and monetary policy tools across domains, all while maintaining a single, coherent CBDC infrastructure that can support the entire economy: from high-value interbank settlement to everyday consumer payments, all on a single, coherent platform.

Building a trusted tokenised monetary system

The shift toward tokenised finance is no longer theoretical. It is being driven by real-world asset tokenisation, the rise of next generation payment platforms, and the early integration of decentralised finance into institutional environments. The long-term success of this evolution will depend on how effectively public money and private innovation are combined. Tokenised public money will be essential, not only to provide trust and stability, but also to ensure interoperability, openness, and resilience as the digital economy continues to grow. Now is the opportunity for central banks, fintech innovators, and financial institutions to jointly shape a resilient and future-proof monetary system, one capable of supporting the next decades of economic transformation.

“A unified currency system preserves the singleness of public money while ensuring native interoperability across all use cases.”

What this means

• Monetary sovereignty and stability

• Seamless interoperability

• Foundation for new digital financial services

Building on this layered model, central banks are increasingly exploring a Unified Digital Currency System, where wholesale and retail CBDC operate on a shared infrastructure. Instead of relying on separate systems, access is defined by policy, allowing flexibility while preserving the singleness of public money. This approach enables seamless interoperability across use cases and supports a single, coherent platform for both institutional and everyday payments.