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"Recently, the subject of seigniorage - the revenues deriving from the monetary monopoly - has attracted the attention of academics and policy-makers. The authors discuss the reasons for this interest before undertaking a survey of the implications of a large-scale introduction of electronic money products on the seigniorage revenues and financial independence of central banks in the group of G10 countries. In countries with decreased seigniorage revenues and a high percentage of e-money the financial independence of central banks are negatively affected as a result of their inability to compensate for increasing operational expenses. Measures such as the limitation of e-money issuance and the imposition of requirements on e-money help in curtailing operational costs related to salaries, pensions, publications and banknote circulation, among others."

The Celo price stability protocol can be thought of as a hybrid crypto-collateralization/seigniorage-style model, designed in a way that we believe offers the best of all three approaches. The protocol supports an ecosystem of stable currencies, the first of which, the Celo Dollar, will be pegged to the US Dollar.

"Can an algorithmic stablecoin truly achieve long-term viability? Will algorithmic stablecoins always be subject to extreme expansionary and contractionary cycles? Which vision of an algorithmic stablecoin is more compelling: a simple rebasing model or a multi-token "seigniorage" system (or something else entirely)?"

Can an algorithmic stablecoin truly achieve long-term viability? Will algorithmic stablecoins always be subject to extreme expansionary and contractionary cycles? Which vision of an algorithmic stablecoin is more compelling: a simple rebasing model or a multi-token "seigniorage" system (or something else entirely)? This article seeks to explore some of these fundamental issues, both from first principles reasoning and by drawing on some empirical data from recent months.

"Terra is a layer-1 blockchain platform that supports smart contracts and enables the creation of various stablecoins. It aims to serve as a base layer for the fintech ecosystem. These stablecoins are stabilised by algorithms and are used for payment purposes. They run on a seigniorage mechanism."

CBDC design must consider the creation process of all money across a number of categories which in step one could greatly improve the overall transparency, and manageability of the movement of money, and related values - i.e., seigniorage and demurrage. Our current thoughts on these categories include mortgages, certificates of deposits, corporate debt, student loans, auto loans, credit card debt, checking accounts, and HELOC. CBDC design papers largely omit discussions around the instantiation of fiat currency. It is necessary to examine the current birth process of fiat currencies which are largely brought into existence by the process of the collateralized lending activities by commercial banks (e.g., mortgages), a business model not readily available to competing private currencies.