On-Ledger Currency

On-ledger currency is a form of money whose definitive record of ownership is the ledger itself. Bitcoin on the Bitcoin blockchain and ether on Ethereum are the clearest examples: there is no bank account or reserve elsewhere that decides who owns the coins, and transferring them means updating the ledger. Because the asset and its record are the same thing, settlement on the ledger is final, and holders do not depend on an issuer to redeem anything. The term is used in contrast to off-ledger currency, such as bank deposits, which can appear on a blockchain only as a token claim. Some designs, including central bank digital currencies and tokenized deposits, aim to make an official liability itself native to a ledger. Also see ledger money.