Environmental DNA (eDNA) offers significant potential to expand biodiversity monitoring, and recent efforts in obtaining eDNA by different sampling methods, including bulk samples of air, mixed vegetative material and stem flow, have broadened the opportunities for its use. However, identification of sequences from eDNA data is based on using so-far incomplete reference databases of catalogued DNA barcodes. In lesser-studied groups, such as lichens, the use of eDNA may therefore introduce biases relating to variable representation in barcode databases according to geography, growth form, ecology and conservation status. To understand these biases, we focused our study on a simple question, regionally targeted but thematically broad: how many British lichens have catalogued DNA barcodes usable as reference data for eDNA detection? Since sequence data is also stored across many different databases, our research focused on combining sources while addressing taxonomic changes. This British lichen-fungi perspective highlights critical challenges. We show that a substantial gap exists between sequenced species and those listed in the British Isles, meaning eDNA cannot currently provide a representative picture of lichen diversity. This is concerning because eDNA work is increasingly advocated for lichen survey and monitoring, and is becoming privatized and sold as a product, where methods and pipelines are made proprietary and hidden from peer review. In this study, we offer a warning at a time when the rapid uptake and application of eDNA and interpretation of its results remain subject to complex uncertainties. Looking towards the full potential of eDNA for lichen diversity monitoring, we outline species to target for nearing a more complete ITS reference database for British lichen diversity and suggest that taxonomic experts adopt approaches that can explicitly refine our knowledge on the current limitations of eDNA to direct future research agendas towards its more effective use.