Oliver Wyman, a consulting firm, and JPMorgan Chase collaborated to conduct research on potential uses of blockchain technology in commercial banking. The next step was for the two companies to publish their findings on February 9, which was made public. The writers also make it a point of highlighting the benefits deposit coins offer in terms stability and dependability. This distinction is made between deposit coins and other cryptocurrency. Despite the fact that central bank digital currencies (CBDCs), stablecoins, and CBDCs have been market leaders for a long time, the authors emphasize the potential benefits of using deposit coins. This is despite the fact that deposit coin could still be used instead.
In order to ensure that the deposit claim can be accurately recorded, a depository institution will issue tokens of deposit on a blockchain. This is to ensure that the deposit claim can be accurately recorded. Stablecoins or CBDCs are issued more often by private companies than banks. This contrasts with everything else. It is possible that the issuer doesn’t conform to the traditional type of financial institution, which could be in their favor. “Deposit tokens are commercial bank currency, but in a different technical form. They can therefore be considered part of the banking ecosystem and subject to the same regulation and supervision as commercial banks.
According to the researchers, regulation helps build trust, decreases the chance of a run-on deposit tokens, and ensures dependability.
