Things are at fast paced due to innovation brought by technology. It actually helps in a lot of industries, especially about the business side. One of many trends that technology has contributed is Digital Currency.
It's an internet based form of currency or medium of exchange. It is usually associated with traditional currency, Forex exchange and remittances, because of the similarity of their functions that's primarily on buying physical goods as well as on paying services.
There are times when it is mistaken with Virtual Currency. Aforementioned, which is defined by the ecu Central Bank as "a kind of unregulated, digital money, which is issued and usually controlled by its developers, and used and accepted among the members of a specific virtual community", is different from Digital Currency given it does not have all the features of real currency. Virtual currencies cannot be used to buy physical goods and can't be converted into traditional or fiat currencies.
This may also be used with in-person payment at physical establishments and may also be converted into fiat currency, with minimum fees to no fees. In accordance with investopedia.com, Fiat Money is declared through the government to be a legal tender and is not backed by a physical commodity. Its value can be derived from the relationship between supply and demand. Moreover, it allows the instantaneous transaction and borderless transfer-of-ownership, laptop computer compared with Fiat currency.
Fiat currencies are restricted by their geographic regions. This concern is solved by digital currencies because they are international currencies with no borders, and is only possible online. Users don't have to pay increased cost in international payments and funds transfers because they can directly transfer funds, pay bills, and buy goods through digital currency. Also, dealers cannot charge extra fees on the consumer without their knowledge.
Digital money transfers can also be faster compared to traditional wire transfers that can a long time to process. Digital transactions may take just about a few minutes to perform, depending on the transaction technique of the platform. Also, it can be more convenient compared to over-the-counter bank transactions that have limited time and needs a lot of processes to take before it can be completed.
Security is also better with digital currency. It utilizes a certain system which let the user take hold of their accounts, driving them to autonomous and self-regulatory. Information could be backed up and encrypted to ensure the safety of your money. Unlike fiat currencies which are controlled by the government, some digital platforms will not have central authority regulating them. Some digital currencies, like Ripple and Radar, are nevertheless monitored and checked by specific individuals and/or companies. These are also attractive to those who prefer private financial dealings since the majority of the digital currency systems are untraceable to individuals and companies.
It also cuts down on the possibility of credit card fraud. Personal customer information and plastic card numbers can be stolen and turn into used to make possible unauthorized purchases. Because it is a purely digital transaction, the receiver of the payment has no access on the personal information of the sender, and information fraud can be avoided.
This trend offers several benefits that cannot be found on fiat currencies. The truth is, it has a lot of improvements suggests make, but if you are seeking easier, more convenient, plus much more secure transactions, it will surely be a more sensible choice than traditional transactions.