Centralized digital currency is common in modern culture. They are governed by a centralized governance organization that does not take into account trades. Examples of centralized digital money include air miles, digital wallets, central bank digital money, and various types of customer loyalty points.
Loyalty points and other centralized digital currencies have an impact on the statement of financial position because they are first recognised as a contract liability by the issuer under IFRS. When a customer redeems loyalty points, the company gains revenue while reducing contract liabilities.