The finance realms are on the verge of a grand change, courtesy of digital currency. If you have not yet heard much about it, worry not: you will soon. Digital currency is coming, and soon it will make everything we know about money rethink.
So what actually is digital currency? In essence, money exists purely in electronic form. Unlike their traditional across-the-board physical note and coin counterparts, digital currencies are created and stored electronically, which means that they can be transferred worldwide in seconds without intermediaries such as banks.
The most exciting element of digital currency is that it is now being touted as a tool for increased financial inclusion. According to the World Bank, approximately 1.7 billion adults worldwide are still unbanked. Digital currency will enable them to access financial services and allow them to send money and receive money, save, and even invest.
But digital currency is much more; it is also about efficiency as well. Traditional banking systems are regarded as being slow and inefficient, as they may take days for the transaction to settle. The digital currency is able to settle transactions in real time, which reduces the cost of using some high-cost intermediaries and greatly speeds up the flow of money.
However, there are challenges. Some of them include issues that deal with security, regulation, and adoption before digital currencies can become mainstream. Nevertheless, digital currency is coming soon and will greatly change the world. So buckle up for tf he next big thing in finance, just around the corner.