Towards a Fiduciary Digital Currency

Abstract

Shortly after the first financial crisis of globalization (2008-2009), a number of changes started to dominate the financial and banking world. Households and companies were confronted with a series of new rules and procedures aimed at protecting both the banks and the public. In most cases they led to an increase of the lending cost, and new requirements for money laundering avoidance and prevention of terrorist financing made access to money onerous and hungry for paper. Technology and AI brought an alternative to the market, which proved to be faster, cheaper and with less hurdles. They are all private initiatives, spun up by startups and the wisdom of putting IT knowledge to the service of young entrepreneurs. The crypto assets, blockchain, fintech, digital payments and digital currencies are all part of the new developments. The emergence of technology as the new layout for banking led major financial powers and the international financial institutions to look closer at the challenges they face, and decide that the launch of an official digital currency should not be postponed for too long. Currently, more than 70 central banks of the world are engaged in the process of preparing for the near future, among which ECB is a front runner.

Keywords: Blockchain, fintech, digital currency, crypto-assets, central banks, artificial intelligence, banking, finance, open banking, startup