The refusal of bitcoin to just deflate and die, even after the supposed bursting of the crypto bubble, might reflect the extraordinary power of popular delusion. But it may also say something about our dissatisfaction with the current payment system — physical cash and credit cards — and the desire for a faster, cheaper and safer alternative.

Fortunately, when not preoccupied by crypto bubbles or fraud, central bankers have been thinking about this problem. One solution under consideration, most prominently in Sweden but elsewhere too, is to introduce a digital version of physical cash.

The most straightforward way of doing so would be to let the public open digital checking accounts at the central bank. Not only would such accounts displace most cash transactions, they would also give bank cards a run for their money, to the benefit of consumers. Funds can be transferred instantly within a central bank, without intermediaries or hidden fees.