A tokenized unified ledger developed by central banks and public authorities will enhance efficiencies without the shortcomings of stablecoins, the Bank for International Settlements (BIS) said. Stablecoins “fall short” as a form of sound money and “without regulation pose a risk to financial stability and monetary sovereignty,” BIS said. Because stablecoins do not deliver acceptance for payment at par, timely discharge of obligations or safeguards against financial crime, “their future role is unclear.” A tokenized unified ledger would maintain these “key principles of sound money” based on trust in central bank money while enhancing efficiency and opening new opportunities in cross-border payments, securities markets and other use cases. This solution includes tokenized central bank reserves, commercial bank money and government bonds. As a digital representation of assets on programmable platforms, tokenization integrates messaging, reconciliation and settlement into one operation and ushers in “a new era for the financial system.” BIS called on central banks and public authorities to pave the way for this new era. It added that BIS is already working with central banks to develop tokenization through Project Agorá and Project Pine.