This short video explains: what are digital currencies such as Bitcoin? How do they work to make payments in a decentralised way – without the need for banks? And how does this differ from making electronic payments using traditional currencies?
The video also considers some more far-reaching potential applications of the ‘distributed ledger’ technology underpinning digital currency systems. A Quarterly Bulletin article explores these issues in more detail, as well as other topics such as how fraud-proof digital currency schemes are.