The paper analyzes the wide-ranging and profound implications of digital money for the IMF membership. First, new forms of money must remain trustworthy. They must protect consumers, be safe and anchored in sound legal frameworks, and support financial integrity. Second, domestic economic and financial stability must be protected by carefully designed public-private partnerships, a smooth transition of the role of banks, and fair competition. And digital money should be designed to support climate sustainability and efficient fiscal policy. Third, the international monetary system (IMS) should remain stable and efficient. Digital money must be designed, regulated, and provided so that countries maintain control over monetary policy, financial conditions, capital account openness, and foreign exchange regimes. Payment systems must grow increasingly integrated, not fragmented, and must work for all countries to avoid a digital divide. Moreover, reserve currency configurations and backstops must evolve smoothly."--Abstract