WHAT IS DIGITAL CURRENCY? ADVANTAGES AND DISADVANTAGES OF DIGITAL CURRENCY.
Keywords:
digital economy, digital technology, digital currency, blockchain, cryptocurrency, stablecoin, bitcoin, Central Bank Digital Currencies (CBDCs).Abstract
The digital economy encompasses all economic activities that rely on digital technologies, including the internet, computers, and telecommunications. It has become an integral part of modern economies, transforming the way businesses operate, consumers interact, and governments provide services. As a result, Digital money, also known as digital currency or cryptocurrency, has emerged as a transformative force in the financial landscape. Unlike traditional fiat currencies issued by central banks, digital money is decentralized and operates on a digital ledger system known as a blockchain. This unique architecture has the potential to revolutionize the way we store, transfer, and use money.
References
Adrian, T and T Mancini-Griffoli (2019): “The rise of digital money”, Annual Review of Financial Economics, no 13.
Agur, I, A Ari and G Dell’Ariccia (2021): “Designing central bank digital currencies”, Journal of Monetary Economics, forthcoming.
Brunnermeier, M, H James and J P Landau (2019): “The digitalization of money”, NBER Working Papers, no 26300.
Carstens, A (2019): “The future of money and payments”, Whitaker Lecture given at the Central Bank of Ireland, Dublin, 22 March.
Chiu, J and T Koeppl (2019): “The economics of cryptocurrencies - Bitcoin and beyond”, Bank of Canada Staff Working Papers, no 2019-40.
Committee on Payments and Market Infrastructures (CPMI) and Markets Committee (MC) (2018): Central bank digital currencies, March.
Keister, T and C Monnet (2019): “Central bank digital currency: stability and information”, mimeo.
Keister, T and D Sanches (2019): “Should central banks issue digital currency?”, Federal Reserve Bank of Philadelphia Working Papers, no 19-26.
Schilling, L and H Uhlig (2019): “Some simple Bitcoin economics”, Journal of Monetary Economics, vol 106, pp 16–26.
Shin, H S (2021): “Central bank digital currencies: an opportunity for the monetary system”, speech on the occasion of the BIS Annual General Meeting, Basel, 29 June.
info@unicaselaw.com.
https://en.wikipedia.org/wiki/Digital_currency.
https://corporatefinanceinstitute.com/resources/cryptocurrency/digital-money/.
