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What is the significance of the 786 as used by many Muslims?

Answered as per Hanafi Fiqh by Askimam.org
Answer

The numerals 786 in no way represent ?Bismillaah al-Rahmaan al-Raheem? and is not the Sunnat way. If one fears abuse of the letter, etc. ?Bismillaah al-Rahmaan al-Raheem? should be recited verbally at the beginning of the letter which will suffice for the written script.

and Allah Ta’ala Knows Best
Mufti Ebrahim Desai

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This answer was collected from Askimam.org, which is operated under the supervision of Mufti Ebrahim Desai from South Africa.