Money and payment systems are intrinsically linked. In order for an asset to function as a medium of exchange, there needs to be a secure way of transferring that asset — a payment system. And for any system other than the exchange of physical banknotes or coins, a means of recording the values stored is also needed — a ledger. Modern payment systems are computerised and most money exists only as digital records on commercial banks’ accounts. This article considers recent innovations in payments technology, focusing on the emergence of privately developed, internet-based digital currencies such as Bitcoin. Digital ... (full story)