Importance of digital currency
Assalamu Alaikum
How are you? By Allah's grace, I'm doing very well. Today, the topic I want to discuss is importance of digital currency.
The currency we currently use is paper currency. Now the question is what is digital currency? Digital currency or digital money is a central bank digital currency or CBDC. It is completely legal by the government. Which can be issued by the central bank of any country, but it will be completely digital. The notes or coins we use as a medium of exchange are stamped by the government. These money or coins are completely legal. In this case, digital money is also completely legal. Digital transactions will be done digitally without the medium of notes or coins. So now the question may come to you, what is the reason for bringing digital currency? The reasons for this are very simple, one is to save the cost of printing notes or coins, along with some financial transaction benefits, avoid harassment, lower cost of payment system etc.
But digital currency is a bit different from Bitcoin. Cryptocurrency users remain anonymous through the use of blockchain technology. But this official digital currency is fully controlled by the central bank. The current value of a note or coin will be the value of the digital currency. Many central banks have already introduced digital currencies. Swedbank is ahead of many in this race. It is believed that the currency of the central banks of the country will be able to capture the international market in the coming days. A lot of cryptocurrencies have come out strongly in the digital medium since a long time ago. Currencies like Bitcoin, Ethereum etc. are used by many. The main difference between these and digital currencies or central bank digital currencies is that cryptocurrency has no owner (it can be used by everyone). Cryptocurrency is not controlled by any specific person or any specific type of organization. But we all know that banks are regulated by the government. We can use e-wallet for daily essential transactions online. The difference between e-wallet and digital currency is that e-wallet has no value of its own.
It is completely dependent on the specific currency, i.e. the value of money in the international market, which is also the price of the money kept in the e-wallet. In the same way, the price of the euro or American dollar in the e-wallet and the value of the printed euro or dollar are also the same. But the digital currency will have its own price, it will not depend on the price of money. And we will get these extra benefits through the use of digital currency.
Today's discussion concludes here. I hope you've found it interesting. Please share your thoughts on today's topic. Prayers for everyone. May everyone be well. Amen.
The entire world is moving towards digitization and currency also has to move into that space because physical currency involves a lot of cost and logistic arrangements which can be minimised significantly with digitization. Thanks for sharing this informative article with us
The importance of digital currency in cryptocurrency is huge. And always will be. Nice presentation.
A very nice post, thank you so much for explaining it so beautifully!
Thank you for shedding light on this topic and enlightening u more on the seeming benefits of digital currency, you have done admirably well in this regard my friend. Keep it up.