Permissioned Distributed Ledgers and the Governance of Money

Since the late 1990s, monetary theorists have regarded money in general and cash in particular as a substitute for a publicly available and freely accessible record-keeping device. Theoretically, cash could be replaced by a public ledger recording all past and present transactions. Distributed ledger technology (DLT) is such a record-keeping device that can ensure trade without a central authority – but can it do so efficiently and more robustly than traditional, centralised exchange?

This paper by BIS examines the economic opportunities and challenges of DLT, focusing on the strategic elements underlying its optimal design and its efficiency compared with a centrally managed payment system