June 26 (Cointime) - Both the IMF and BIS have released reports on the future of the monetary system, which highlight the potential for tokenization and mention crypto and central bank digital currencies (CBDCs).

Tokenization is defined as the process of representing claims digitally on a programmable platform, and involves integrating the records of the underlying asset with the rules and logic governing the transfer process.

The reports focus on the tokenization of CBDCs, with the IMF suggesting a system where participating banks deposit reserves in an escrow account and the platform creates a digital certificate of escrow for transfer on the ledger.

However, the reports' conflation of tokenizing CBDCs with cryptocurrencies like Bitcoin is misguided and detracts from the appeal of decentralized control.