Finance & economics | Free exchange

What the history of money tells you about crypto’s future

The thread from shipwrecks and sheep flocks to digital currencies

Illustration of two coins side by side on a red background. The left coin is green, featuring an image of Julius Caesar in profile, labeled with Roman-style text. The right coin is gold with the Bitcoin symbol and a digital circuit design. Below the coins
Illustration: Álvaro Bernis

This month China’s central bank revealed that its digital currency, the e-CNY, had been used for 7trn-yuan-worth of transactions in its short life—an amount equivalent to almost $1trn. China is not alone. Over 130 countries are exploring digital currencies, according to the Atlantic Council, a think-tank. Proponents of official digital currencies believe that a combination of ubiquitous smartphones, innovative cryptography and vast computing power means it is possible to remake the financial system.

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This article appeared in the Finance & economics section of the print edition under the headline “Deep in the vaults”

From the September 21st 2024 edition

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