Always on the look out for things we can learn from history. In that spirit here is an interesting post on a Bank of England blog that explores what lessons the switch from coins to paper money might offer for the expansion of digital currencies.
They identify five lessons. The one that resonates with me is that the adoption of new forms of money can depend on the extent of shortages in the conventional forms …
“Possible lessons for the adoption of digital currencies
Can we learn anything from the switch from coin to paper in the 1690s that might be relevant to any adoption of digital currencies today? One lesson is that shortages of money are a powerful force in stimulating new forms of money to emerge. In the 1690s the extreme shortage of silver created a compelling reason for merchants to adopt new paper currency. Arguably, this is a force driving some new forms of digital money to emerge – conventional forms of money being incompatible, or lacking the functionality to use, in some digital settings, creating an effective shortage.”
Tony – From the Outside
From the outside 