How will digital ecosystems develop in 2024?

MONETARY and financial institutions have been pinning their hopes on a digital overhaul for several years. How distant the outcome depends very much on who you ask, but the form of our new digital lives is slowly beginning to take shape.

Digital currencies remain persistent but unproven

Central banks are, almost without exception, conducting research into developing their own digital currencies. The proofs of concept have largely shown that at least some form of central bank digital currency (CBDC) is technically deliverable.

However, several difficult questions remain to be answered. Some of these are technical, such as offline payments and whether they constitute payments without Internet access, without telecommunications coverage or without electricity. But as a feature, offline payments are hugely important, particularly for central banks that view CBDCs as a means to improve financial inclusion.