The Digital Economy

The Incumbent Economy is a collection of sovereign micro economies with geo-political micro economic borders. The Digital Economy has different micro economic borders.

The ‘Digital Economy’ is an ecosystem of production, consumption, trade transcending geo-political boundaries where ‘Digital Assets’ operate in a virtual or digital environment as Stores of Value, where there is consensus about the value and the method of transfer between them. Economies now operate both on a macro level across (Incumbent) geo-political sovereign borders or across Digital Borders, or on a micro level within geo-political sovereign borders and within Digital Borders. Currently, the Incumbent Economy and the Digital Economy can interact with each other through exchanges and commerce where assets from both economies can be transacted and exchanged.

The Incumbent Economy now has a powerful example of a consortium that extends beyond one geo-political border. The EU has demonstrated that the use of a singular currency beyond a singular geo-political territory is possible


(From “Defining the Digital Economy: The Structure of the Digital Economy in Focus”)