Electronic money vs. electronic money tokens

Abstract

This article examines the differences between electronic money tokens and traditional electronic money, focusing on the legal aspects of both categories. Although they share a common purpose – to be used as a means of payment – conceptual differences exist between them. While electronic money serves as an electronic substitute for real money, electronic money tokens represent a ‘tokenized’ form of it, facilitating payments in ‘real money’ through blockchain or similar technologies. The article emphasizes that the legislative identifi cation of these two categories cannot erase the inherent differences between them. Through an analysis of the applicable legal framework, the article explores the distinctions in the processes of issuance and offering of these assets. It critically examines the arguments of some authors who claim that tokens can be issued by any entity, including unidentified ones. In conclusion, it is stated that, despite their functional similarities, the regulation and legal status of electronic money tokens and electronic money remain distinct. Therefore, considering electronic money tokens as a type of electronic money is misleading within the context of the current legal framework.