Digital Currency is any currency, money, or money-like asset that is preliminarily used, stored on digital platforms like the Internet. A Digital Currency does not have any physical attributes and is merely available on the digital platform. If you want to make a transaction involving digital currency it can be done by using computers and electronic wallets. 

The utility of digital currency is very similar to physical currency. They can be used to purchase goods and even pay for the services. These currencies also enable instant transactions that can be executed seamlessly across borders.

There are three types of Digital currency cryptocurrency, Virtual Currency, and central bank currency. Digital currency can be recorded on a distributed database on the internet a centralized computer database that can be handled by a company or a bank. Digital Currency is the future of money you should follow the latest world news.

Cryptocurrency Virtual currency Central bank Currency
Cryptocurrencies are the type of currencies that use cryptography to secure and verified transactions.Virtual Currencies are the currency that is unregulated digital currencies controlled by a developer or the founding organization.Central bank Currency is a regulated currency issued by a central bank of any country.

Advantages of Digital currency 

  • Digital Currency have faster transfer and transaction time
  • These currencies do not require physical manufacturing thus cannot be soiled 
  • Monetary and Fiscal policy a be easily implemented on the
  • Digital currency can make the transaction cost cheaper

Disadvantages of Digital currency 

  • Digital currency do not solve all the storage and infrastructure problems
  • Thier digital Provence makes them more likely to hacking 
  • Digital currency can be volatile in value

Digital Currency In India

India is also keeping with the worldwide digital currency havoc and RBI  have been planning to launch their own CBCD ( Central Bank Digital Currency). And there are many lessons they can learn from the glitches in digital currency. Some of the experiments to beware of like A digital currency that was used in 7 Caribbean nations has experienced some glitches recently that have kept it offline for about a month. As the RBI is expected to launch its own CBDC in the upcoming fiscal year, that lines up with the plans of the Indian Government to launch the digital currency that will be backed by blockchain technology. You must follow the latest world news daily.

CBDC aims to provide the Indian users with the convenience and security of digital currency along with the RBI regulated, reserve-backed circulation of the traditional banking system. Reports show that 9 nations or currency unions have launched their digital currencies and 15 among these are at the initial stage. Further, 16 including India are in the development stage and 40 are in the research stage.
The speculative nature of private and digital cryptocurrencies like bitcoin etc is what has been pushing many central banks into adapting thier currency, to know more about India’s digital currency launch you must follow Finance news.

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