A Deep Dive into Payments

This chapter explores the various aspects of payments, categorizing them into retail, wholesale, and cross-border types. It discusses the evolution and significance of currency unions, like the Euro, and the ongoing shift from cash to digital payment methods. The chapter highlights the high costs associated with cash transactions and the growing prevalence of digital payments, including cryptocurrencies and mobile payments. It also examines the role of central banks in developing Central Bank Digital Currencies (CBDCs) to adapt to these changes. The chapter concludes by introducing payment tokens, such as cryptocurrencies and stablecoins, setting the stage for their detailed examination in subsequent sections.