The Effects of a Global Digital Currency
A global digital currency, often referred to as a cryptocurrency, is a virtual medium of exchange that has been introduced into the modern world within in the past few years and despite much speculation about its safety, among other things, cryptocurrencies have the potential to completely transform the exchange of money around the world.
Positives
They have the potential of doing away with fees, delays and other barriers on the flow of cash. It might give those in less developed countries access to the financial system and a means to protect hard-earned wages against inflation.
This is what Facebook promised, on 18th June 2019, with their introduction of a new entirely electronic currency known as Libra. This social media network aims to further integrate cryptocurrencies into the global market.
As we see countries slowly moving away from fiat currencies, such as Sweden, whose demand for cash has dropped by more than 50 per cent over the past decade and more than half of all bank branches no longer handle cash, we must ask, do the negatives of a virtual currency exceed the positives or would the world be better off completely cashless? There are many effects of this exchange upcoming in the world. In this article, these points will be discussed.
