Rise of Digital Currency
Digital currency is a form of currency that is available only in digital or electronic form. It can only be acquired using electronic devices such as mobiles or computers, etc. Two types of digital currency are Centralized and Decentralized. Examples of centralized digital currency are digital dollar, euro.
Now will see what Cryptocurrency is. Cryptocurrency is a virtual fee maintained by means of a network of computer systems that uses cryptography to authenticate transactions. Cryptocurrency is a form of decentralized digital currency. Examples of cryptocurrency are Bitcoin, Ethereum, Litecoin, Ripple. The first digital currency became Bitcoin mined via millions of human beings in distinctive locations around the world. It was Satoshi Nakamoto, Bitcoin’s pseudonymous creator, who built its decentralized system that anyone may want to participate in, however no person can’t own. A blockchain is decentralized ledger of all transaction across the network. It was built for the cryptocurrency Bitcoin.
The stance of nations and regulators has ranged from a total ban to allowing them to function with some rules, to the opposite extreme of permitting virtual foreign exchange in the absence of any pointers. Cryptocurrency has volatile value as rules and regulation and demand or supply also competition in the market affect them. Bitcoin was created in a way that has a limit of 21 million. Also it is decided that the last bitcoin will be traded in the year 2140. El Salvador is the only country which has announced cryptocurrency as legal.
Some countries are framing some rules to legitimate cryptocurrency. Even India had introduced Official Digital Currency Bill in February 2021. That time Finance Minister Nirmala Sitharaman said that crypto transactions will be taxed 30%. Now Finance Minister Nirmala Sitharaman said that RBI will introduce its CBDC that is Central Bank Digital Currency — Digital rupee in 2022–23 in her budget speech.
People buy crypto as possessions not for payment purposes. But slowly time is changing, Suryavanshi Restaurant in Bangalore, Pizzeria in Mumbai accepts their money through bitcoin. You can even buy books and movie tickets using local cryptocurrency exchange app. In USA, Bitpay which is a debit card that can be used to convert cryptocurrency into USD dollars. India is the fastest growing market for cryptocurrency. As of 2021, 7.3% Indians hold assets in the form of digital assets. This numbers are increasing constantly. So there might be time in future when our transactions will happen in the form of digital currencies. the future holds endless possibilities. Digital currency has the power to bring a change in everyone’s day-to-day life.
I hope this article offers you some help in understanding Digital Currency. Feel free to connect with me through LinkedIn.
