What Does Digital Money Mean for Emerging Market and Developing Economies

Finance, Competitiveness, and Innovation Global Practice, World Bank Financial Institutions Group, International Finance Corporation What Does Digital Money Mean for Emerging Market and Developing Economies? Fintech and the Future of Finance Flagship Technical Note What Does Digital Money Mean for Emerging Market and Developing Economies? Fintech and the Future of Finance Flagship Technical Note ©. [...] The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and does not assume responsibility for any errors, omissions, or discrepancies in the information, or liability with respect to the use of or failure to use the information, methods, processes, or conclusions set forth. [...] Particular Challenges of Stablecoins for EMDEs 20 Authors and Contributors This note is part of a series of technical notes developed for the Fintech and the Future of Finance report, a joint effort by the World Bank and the International Finance Corporation. [...] Many are vying to become a new form of digital money that can be securely sent and received over the internet, by anybody with a phone or internet connection, and with the convenience and cost-effectiveness of an e-mail. [...] This distinction depends on the method of verification: the receiver of a token will verify that the token is genuine, whereas an intermediary verifies the identity of an account holder (see Kahn and Roberds, 2009).7 Physical cash, crypto-assets, and stablecoins can be considered token-based—even if the first is in physical form, and the latter two are digital.