A Brief History of Digital Currencies and Their Current Challenges (1989-2024)
Jean Michel Rocchi, Michel Ruimy · 2025
In this chapter, we will show that, despite the widespread (misconception) that they emerged with bitcoin (2009), cryptocurrencies emerged long before, with the development of private currencies. Their new appeal can be traced back to the emergence of the cypherpunk movement, but also to advances in cryptography. We will note that the longevity of cryptocurrencies, whose mortality rate is high, can be related to the theory of the liability of newness. At the same time, numerous of central bank digital currency (CBDC) projects have recently been launched. El Salvador's intention to make Bitcoin legal tender blurs the boundary between these two forms of digital currency. We will propose a taxonomy of the main forms of these assets and note that the longevity of cryptocurrencies, which have a high mortality rate, may be linked to their novelty. Finally, in this context, we will discuss the willingness and ability of CBDCs to supplant cryptocurrencies.