Digital currencies are a relatively new thing, with the pioneer being Bitcoin. The first cryptocurrency was invented in 2009 as a response to the financial crisis and has enjoyed a tremendous decade. Nowadays there are thousands of cryptocurrencies available, all of which can be traded simply by using a smartphone.

The ease and convenience of digital currencies are major factors in their popularity. Nonetheless, cryptocurrencies such as Bitcoin or Ethereum are still a long way away from the mainstream. On the other hand, large financial institutions have stated that <a href="https://www.cryptoknowmics.com/news/bitcoin-to-become-the-21st-century-gold-says-deutsche-bank" target="_blank" rel="noopener">Bitcoin will be gold</a> in this 21st century.

With most individuals now owning a smartphone, everyone now has access to financial products. Only a couple of decades ago, credit card usage was rare and everything was paid for in cash. Yet, today most payments are digital, from one bank to another – nothing tangible moving, just numbers on a screen.

The FinTech industry has been a major driver in the digital payments trend. Companies such as Revolut allow customers to send money to their family and friends quicker and cheaper than a traditional bank. Moreover, the platform allows the individual to have more than one currency account and even gives them access to buying stocks or crypto. With most stores accepting Visa and Mastercard, there is very little need for cash, so people in the Western world are not using it as much. But is a cashless society a good thing? And will having a digital currency bring benefits?

The closest country to the digital currency system in China. An app called We Chat is used for everything, from finance to ordering food, but giving the government access to a huge amount of data comes at a cost. The Chinese are the most censored nation on the planet, bar North Korea, and the sheer amount of data provided to the CCP has led them to implement a social credit score system. Individuals are marked on everything in their day-to-day lives including financial responsibility and social media accounts. From there, people are assigned a score by the authorities, which sounds extremely dystopian.

In China, many things are banned such as video games, many websites, and even casinos. Digital products can be both empowering and a threat at the same time. In other countries in Asia, such as India the digital economy is booming, but the government is not entirely on board with crypto. The Indian authorities have recently launched a project titled the E- Rupee, and how it will be used within its central bank. However, many things still need to be cleared up.

India is still a conservative nation, with many things prohibited, such as popular mobile games like Clash of Clans and online gambling. Nonetheless, with a digital product such as a VPN, you can gain access to any site. There are guides that help Indian players find the <a href="https://www.asiabet.org/payment-methods/cryptocurrency/" target="_blank" rel="noopener">best crypto gambling sites</a>, providing information about licensing and legality in each country they cover. They have detailed reviews of each operator, including security, compatibility, bonuses, and payment options such as cryptocurrency, which maintains a player's anonymity, making it a popular choice. In this case, digital products give freedom to the user rather than strip them away like in China.

Nations like El Salvador have made Bitcoin a legal tender, which means you can pay your taxes on it. But currently, no government has issued its own digital currency, with most still working on fractional reserve banking. Also, cash is still the norm across the world, with only some nations looking to phase it out. Industry experts view the <a href="https://www.arabianbusiness.com/money/wealth/467833-uae-can-go-completely-cashless-by-2030-according-to-industry-expert" target="_blank" rel="nofollow noopener">UAE as completely cashless</a> by 2030, meaning everyone would be part of the database. Albeit, there are benefits to a digital identification system, as data can be shared across authorities, which will cut time drastically.

Overall, the notion of digital money and identification systems is nothing short of dystopian. The level of power a government has in this regard is eye-watering. As the world moves into a world of “cancel culture”, cutting off someone's access to money would be the most devastating. Cash serves as a tool for commerce to take place outside of the system, not reliant on computers. With the pandemic almost behind us, and war looming the next trend will be whether money should be digital. Only time will tell.

Are Digital Currencies the Future of Money?

Digital currencies have exploded in popularity the past decade. But will Governments ever create one? And will they ever be used freely?

Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more
than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

Are Digital Currencies the Future of Money?

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