3 Digital Currencies, Payment Systems, and Their Enterprise Implications

In this chapter, I look at the evolution and significance of digital currencies and private stablecoins and their influence on payment systems. I examine the government response to digital currencies in the form of CBDCs and the ensuing competition with private stablecoins and cryptocurrencies. I also look at the policy implications of digital currencies, and regulatory concerns, before turning to the impact of digital currency on the global financial system, monetary policy, enterprises, and consumers in both the B2B and B2C context. Because of their reliance on blockchains, we can interpret the ubiquity, importance, and growing number of use cases of digital currencies as an indication of blockchain's increasingly essential role in the financial sector. As digital currencies continue to gain in popularity and usage, blockchain will enter the mainstream.