Special report | The future
There are risks but also big potential benefits from digital payments
Digital finance has enormous promise but introduces novel risks
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”