"Community currencies are used to pay for products or services within specific groups defined by geographical boundaries or specific common interests. Financial crises, social emergence in developing countries, and increased access to digital devices have stimulated a growing number of communities worldwide to develop digital currency projects. These projects use technologies ranging from traditional plastic cards to mobile phones and blockchain technologies. Following the design science research approach, this paper analyzes digital community currencies (DCCs) by developing a taxonomy based on platform architecture, governance, transactionality and virtuality. By investigating 22 DCC platforms around the world, 4 groups were distinguished: local, proprietary, commons and cyber. The identification of these four different groups of digital community currencies allows us to better discuss the potentials and limitations of each one of them. The presented taxonomy can be useful to researchers and practitioners both to explain and to design DCC platforms. Discussing each of the emerging categories from the proposed taxonomy helps us to provide insights into DCCs, offering a new theoretical frame for investigating the particular case of digital payment platforms."
CoinMetrics, Goldman Sachs and MSCI have created Datonomy™, a taxonomy for classifying digital assets. Datonomy is designed to be intuitive to the average investor while remaining true to the language of the crypto industry. Importantly, it allows investors the same structural framework for investing in the "Decentralized Finance Sector" the same way that they would traditionally invest in, say, the "Energy Sector." Datonomy classifies assets primarily based on their economic context of use. This contrasts with a purely technical taxonomy, or one that confounds the technical and economic characteristics of tokens and their protocols.
The World Federation of Exchanges encourages global standard-setting bodies to generate a taxonomy for all global stablecoins (GSCs) and crypto-assets. In adopting the use of a global taxonomy, a common understanding would develop of whether a GSC or crypto-asset fits a certain classification or definition (eg do the features of the crypto-asset meet the definition/classification of a security) which would, in turn, reduce the variance in application of regulation, to GSCs/crypto-assets, between jurisdictions. Whilst differences might remain across the globe in securities regulation itself, the fragmented approach to the type of GSC/crypto-asset which falls under that regulation would potentially be reduced. This results in a more universal application of regulation, especially if the principle of 'same business, same risk, same rules' is applied and is focused on regulatory objectives and outcomes.
The U.S. Commodity Futures Trading Commission (CFTC) Global Markets Advisory Committee (GMAC) Digital Assets Subcommittee has proposed a new digital asset classification approach and taxonomy. It defines a digital asset in a technology agnostic manner, with the Subcommittee noting that the type of database or network should not be part of the classification to avoid "unintended consequences for the application of market regulations." https://www.cftc.gov/PressRoom/PressReleases/8873-24
Brave New Coin has developed the General Taxonomy for Cryptographic Assets - a tool that seeks to capture the breadth, depth and evolution of distributed ledger technology-based assets across industry sectors globally, as well as to advance the investigation of the assets being classified.
Barclays is pushing a new taxonomy for describing and distinguishing between cryptocurrencies and other digital assets which it hopes can serve as the basis for a global standard. In a recently published paper, they present a new "money tree" which places the concept of digital money tokens into a historical context by illustrating their evolution from more traditional forms of money. It identifies key features of digital money tokens with options and examples. The paper has already sparked some debate, some of which have been summarized in a Risk.net article.
Barclays is pushing a new taxonomy for describing and distinguishing between cryptocurrencies and other digital assets which it hopes can serve as the basis for a global standard. In a recently published paper, they present a new "money tree" which places the concept of digital money tokens into a historical context by illustrating their evolution from more traditional forms of money. It identifies key features of digital money tokens with options and examples. The paper has already sparked some debate, some of which have been summarized in a Risk.net article. https://www.risk.net/regulation/7671926/barclays-proposes-new-taxonomy-for-digital-tokens
The Token Taxonomy Framework bridges the gap between blockchain developers, line of business executives and legal/regulators allowing them to work together to model existing and define new business models and networks based on tokens. The blockchain space alone makes it difficult to establish common ground, but when adding tokens to the mix they find themselves speaking completely different languages.
"Engineers introducing the designation identity to describe objectives or operational aspects of technology, must establish a functional definition of the term identity before committing the concept to source code. As such the objective of this taxonomy project is to provide a peer-reviewed library to serve as a reference for engineers in general, and software engineers aiming to facilitate legally relevant (commercial) activities in particular."
The Token Taxonomy Act of 2019 would require amending US federal securities legislation to exclude crypto assets from the definition of a security, and to create a de minimis exemption from taxation for gains realized from the sale or exchange of virtual currencies.
Based on a survey of 24 specific stablecoin projects, we go beyond individual coins for extracting general concepts and approaches. We combine our findings with learnings from classical monetary policy, resulting in a comprehensive taxonomy of cryptocurrency stabilization.
"Cross-border and multicurrency payment systems have the potential to make cross-border payments faster, cheaper and more transparent. A simple taxonomy reviews the different designs and functionality of existing systems. Such systems remain rare, and most handle small volumes and values. However, a number of new projects will go live in the next few years."
U.S. Congressman Paul Gosar introduced the Crypto-Currency Act of 2020, a draft bill to clarify which federal agencies should regulate crypto. Earlier this year, U.S. lawmaker Warren Davidson also reintroduced the Token Taxonomy Act, seeking to clear regulatory uncertainty.
This paper systematically explores and analyzes the stablecoin landscape, based on a survey of 24 specific stablecoin projects, extracting general concepts and approaches to build a comprehensive taxonomy of crypto-asset stabilization.
The TTF is a Composition Framework. You can use the framework to decompose existing Tokens to identify its parts and if they don't exist in the TTF, you add them. You also use the TTF to define a new token by building as much of the token from the parts that are in the TTF and if you find something missing or could be improved, you add or update it. The more times this process is done makes the TTF better. The more industries and organizations use the TTF it becomes cross industry allowing tokens to be designed to work together. Like Insurance and Finance for documents tokens like a Title or Invoice."
The World Trade Organization and Trade Finance Global have published their latest taxonomy of blockchain projects in international trade. Many projects that were at an exploratory stage a year ago have matured and reached the production stage. This publication maps 44 projects related to trade finance, insurance, know your customer, shipping/logistics and supply chain, digitalization of trade documents and trade processes, among others, and assesses their level of maturity. A new section provides an overview of projects that work towards creating digital standards relevant for trade to drive digital interoperability.
This European Central Bank (ECB) paper summarises the outcome of an analysis of stablecoins undertaken by the ECB Crypto-Assets Task Force. At the time of writing, the stablecoin debate lacks a common taxonomy and unambiguous terminology. This paper applies a definition that distinguishes stablecoins from existing forms of currencies - regardless of the technology used - and characterises stablecoin arrangements based on the functions they fulfil. This approach emphasises the role of technology-neutral regulation in preventing arbitrage, as well as comprehensive Eurosystem oversight, irrespective of stablecoins' regulatory status. Against this background, this paper assesses stablecoins' implications for the euro area based on three scenarios for the uptake of stablecoins.
A University of Cambridge Centre for Alternative Finance report examined legal and regulatory challenges arising from the emergence of digital assets. The aim is to frame future legal and regulatory discussions around digital assets, as well as to identify general trends and concepts across jurisdictions rather than to provide granular analysis of any given jurisdiction's legal position. It found that existing taxonomies of digital assets have failed to fully capture the relevant features of digital assets and the true novelty introduced by crypto-assets. Also, digital assets, for the most part, pertain to existing and well-known legal concepts: they effectively represent a set of rights embodied in a new digital form. Consequently, the regulatory perimeter for regulating digital assets and associated activities should be determined by identifying the legal concept(s) behind a given digital asset. However, digital assets may warrant adjustment or revisions to existing legislation, in particular whether digital assets are fitting objects of property rights.
This speech by Tara Rice, Head of Secretariat, Committee on Payments and Market Infrastructures, focuses on three topics related to how CBDCs can help on the international dimension of payments: (i) a taxonomy to describe the different forms and elements of cross-border interoperability; (ii) the conceptual trade-off between cost and complexity on the one hand and benefits on the other (which in this case would be mainly in reducing the frictions of cross-border payments); and (iii) some thoughts on lessons learned and the way forward.
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