The history and trend of money existed from over the centuries. At present time in digital there are the currency also changes in digital form. The all total types of majority of money circulates at present time in the form of electronic. All the total banks, Government and institution in the whole world are analyzing and researching the economic and technical viability of implementing digital money. Digital currencies are essentially (e-cash) that does not require any specific encryption method Technologies. The financial system is the mostly transformed in digital money and the revolution of digital money takes place on the world wide level. Most countries of the whole world are also uses many types of digital currency method. Cryptocurrencies are the type of digital currency that encrypt and verify network transaction using cryptography. Cryptocurrencies like bitcoin could be the future of payment system or even how we will exchange value over the internet in the next coming years. On the other hand most of central banks are experimenting with digital currency . Central bank digital currency (CBCDs) is a type of money that is issued by the central bank that also easy used more.
Introduction of Money
Many Economics of the whole world define money about that money as anything commonly accepted by people in all over world for exchange of goods and services. Money is mostly used to make transaction easier. Money also saves from the barter system. Money is includes in various types of forms such as cash in the wallet, Bank deposit, that may be transferred through checks, and other deposit and highly ‘liquid’ asset that are easily changed in the form of cash at predetermined rates. In contemporary economics the government controls the amount of money available. The main responsibility of the central banks to managing the supply of money. Technology is used in money systems such as Record Keeping, cash transaction and cash withdrawal.
Evolution Of Money
In the year of 1981 (Kaufman) explained the importance of money. According to many types of evidences the money is related more closely to aggregate levels of spending, prices, income, production and employment. Money is very essential to every civilized societies progress. In all over the world money is one of the oldest social institutions. To meet better requirements and get around difficulties, societies and economics are changing in the form of a money such as (coins, banknotes). This is itself a search for pure money, often known as a perfect money. In the year of 1776 according to (Adam Smith) money serves a unit of account. There are various types of functions may help us to distinguish between different money forms. In the year of 1994 these functions are according to (Davies) are:
1. Money is medium of exchange.
2. Money is common measure of value.
3. Money is a means of payment.
4. Money is standard unit of account
5. Money is standard and means of deferred payments.
6. Money is store of value.
Digital Currency
Digital currency means electronic money was first used in the year of 1990s when the payment system went digital proper means as electronic money. Money is evolved from a network of hundreds of thousands different types of a computer system connected to one another. There are various types of computer software that creates electronic coins in return. Electronic storage and transfer are both possible for money. There are various types of digital currencies such as cryptocurrencies, Central bank digital currency (CBCDs), stablecoins. Digital currencies are also operates on a technology called as Blockchain Technology. There are various types of advantages of digital currencies such as, speed and efficiency of digital currencies, lower costs of digital currencies, accessibility of digital currencies, transparency and security of digital currencies. There are many challenges and risks of digital currencies such as, volatility challenges and risks of digital currencies, regulation challenges and risks of digital currencies, security challenges and risks of digital currencies, adoption challenges and risks of digital currencies.
Cryptocurrency
Cryptocurrency is also known as fintech ( Financial Technology). Financial Technology is financial innovation that uses technology to offer fresh approaches to the established institution. Such type of Technology also improved the Global Business climate today. All people in all over the world have more secure, affordable, and quick means to make transaction all around the world. At present time from Technology the financial account, cash deposit, and case withdrawal are very safe. Some of the most popular and trending cryptocurrencies such as Ethereum, Ripple(XRP), Litecoin, and Cardano. Each cryptocurrencies has their unique and special features. There are various types of reasons from which peoples use cryptocurrencies such as decentralization, security, anonymity, global transactions.
Central Bank Digital Currency (CBCDs)
Central bank digital currency(CBCDs) is a type of digital money platform that is issued and regulated by the central banks of country. Central bank digital currency (CBCDs) are controlled by the government. Central bank digital currency (CBCDs) are work like as that they are stored in digital wallet and that are access by smartphones, computers, or other various types of electronic devices. The transactions are made easier their in no need of intermediaries likes as banks . There are many types of benefits of Central bank digital currency (CBCDs) such as digital currencies is also helpful in to make payments methods faster and cheaper reduced transactions costs, improved payments settings, increase monetary policy. . They also reduces the need for physical cash handling, that are costly and slow. Central bank digital currency (CBCDs) also control and secure the transactions that prevent from many illegal activities such as money laundering, and tax evasion. There are many challenges and risks of Central bank digital currency (CBCDs) such as many types of privacy concerns, cyber security risks, implementation of costs.