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Digital currencies have become the buzzword in recent times. Elucidate different types of digital currencies currently prevailing globally. Discuss the advantages and disadvantages of using digital currencies.
Digital currencies have become the buzzword in recent times. Elucidate different types of digital currencies currently prevailing globally. Discuss the advantages and disadvantages of using digital currencies.
Digital Currencies
- Digital currencies are currencies that are only accessible with computers or mobile phones, as they only exist in electronic form.
- Since digital currencies require no intermediary, they are often the cheapest method to trade currencies.
- Lower transaction fees when compared to credit card charges
- Faster receipt of funds when compared to traditional currencies
- The thorny issue of inflation could be controlled
- The fraud associated with chargebacks could be effectively curtailed
- International business could receive a major boost
- Vulnerability to cyberattacks
- Price volatility, tied to a lack in inherent value
- Difficult to regulate them, especially in a federal setting
- Difficulty in scaling up its usage (in case of financial illiteracy, especially in countries like ours)