Special report | The future

There are risks but also big potential benefits from digital payments

Digital finance has enormous promise but introduces novel risks

Image: Nick Little

All payment systems come with trade-offs. In a sense, all that is needed is a spreadsheet recording how much of a given currency any would-be payer has. But to prevent fraud, manage disputes, ensure privacy and offer credit, the costs can add up. One estimate suggests they can amount to over 2% of global GDP.

This article appeared in the Special report section of the print edition under the headline “A balancing act”

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