EDITOR ' S LETTER
Are you ready for the digital currency revolution ? Until recently , I ’ m willing to bet that the idea of digital currencies generally evoked decentralised examples like Bitcoin in the popular imagination . The Bank of England ’ s task force to explore the viability of its own Central Bank Digital Currency could change all that
“ It ’ s unlikely that cash will ever disappear while there remains even a small demand for it ”
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Designed to co-exist with all extant forms of fiat currency currently in circulation , CBDCs have the potential to be a powerful force for financial inclusion . Not requiring a bank account to access in the same way that physical cash does not , digital currencies could eventually embody the promise of a modern , tech-based economy .
At the same time , however , their adoption around the world would bring an unprecedented era of government oversight to everyday expenditure : every purchase or service rendered would be logged and recorded . In such a scenario , would data security be sufficiently embedded and implemented to placate consumers anxious about this loss of anonymity ?
If not , what are the alternatives ? It ’ s unlikely that cash will ever disappear while there remains even a small demand for it . Elsewhere , decentralised cryptocurrencies may start to gain greater utility outside of being an ‘ en vogue ’ investment asset . Furthermore , with naturally scarce examples like Bitcoin already being touted by some as gold ’ s successor as a store of value , we may be on the cusp of an unprecedented digitalisation movement within the global economy .
Clearly , digital currencies in some form or another are the future of finance . The only questions remaining for businesses and individuals are ‘ What will it be like ?’ and ‘ How far will it go ?’