Programmability

Cash management - treasury - tokenisation - central bank digital currency (CBDC) - distributed ledger - platforms.

In the context of ledger platforms, programmability means the ability to incorporate contingent instructions that can be executed without human intervention.

Benefits of programmability

"Tokenisation – the process of recording claims on financial or real assets that exist on a traditional ledger on a programmable platform – introduces two important capabilities.

First, by dispensing with messaging and the reliance on account managers to update records, it provides greater scope for composability, whereby several actions are bundled into one executable package.

Second, it enables the contingent performance of actions through smart contracts, ie logical statements such as “if, then, or else”.

By combining composability and contingency, tokenisation makes the conditional performance of actions more readily attainable, even quite complex ones...

Moreover, programmability allows new types of contingent payment, while certain policy measures (eg capital controls) can be built in from the start."

Bank for International Settlements (BIS) Annual Economic Report 2023, pages 89 & 91.

See also

• Account
• Balance sheet
• Bank for International Settlements (BIS)
• Cash management
• Central bank
• Central bank digital currency (CBDC)
• Central bank money
• Composability
• Cryptocurrency
• Currency
• Digital currency
• Distributed ledger
• Financial asset
• Helvetia III
• Infrastructure
• Money
• Multi-CBDC arrangement
• Platform
• Real asset
• Reconciliation
• Reserve
• Retail central bank digital currency
• Sight deposits
• Smart contract
• Stablecoin
• Tokenise
• Wholesale central bank digital currency (wCBDC)

Other resource

• Bank for International Settlements (BIS) Annual Economic Report 2023