What is programmable money? A guide to CBDCs and stablecoins

As technology continues to advance and digital connectivity grows, the realm of financial transactions is experiencing swift transformation. Innovative technology such as blockchain and smart contracts are making money and payment systems more intelligent by integrating logical conditions into digital money and transactions. Meanwhile, programmable money represents a shift in financial transactions by embedding operational rules directly into the currency, thus influencing how it can be utilised. This development offers significant benefits in the digital economy, such as improved security, control and efficiency. So, what is programmable money? Programmable money represents a significant leap in financial technology by embedding rules directly within the store of value; unlike programmable payments, which may involve external conditions, programmable money is self-contained, carrying both the programming logic and the value. This means that when programmable money is transferred, it …