Since the rise of the 21st century, the world has seen many changes. Still, it has been changing a lot with the height of pandemic and economic crisis and new technological advancement, threatening the entire financial ecosystem. Fintech or financial technology is a new epoch in computer science and technology. Things that were once dreams are now possible. People in the past used the barter system to exchange goods and services until there came the age when we started using paper currency. It was not a full stop because humans fixed their eyes something higher in the revolution chain. Now paper currency is losing its prime value, and the world is rapidly moving towards digital currency. Digital currency is the product of the fastest computers and modern technology. People perform their transactions in digital currency. We can easily use smartphones and laptops to fulfil all our transactions sitting at our homes. In the beginning, this currency could not get the public's attention because people had very little knowledge about it. Still, the upcoming years proved that the future of digital money is secured.
People send or receive money through money orders. They should get benefit from this modern system. It is the government that can help these people. It can launch digital currency in the country for the use of its public. Therefore, many countries have understood the importance of digital currency. Many countries have launched their digital currency. In 2015, Ecuador launched its digital currency. The National Assembly of Ecuador once banned digital currency. However, the government unbanned it within upcoming years and allowed the public to make transactions in this currency. Ecuador is the first country now accepting bitcoin and other digital currencies as legal tender. This step is ideal for many Eastern countries too. Not only Ecuador but many other countries, too, have adopted digital currency. These countries are China, Senegal, Russia, Japan, Sweden, Estonia, etc. Fee charges on digital transactions are meagre as compared to traditional money transfer services.
The world is rapidly adopting the digital currency. Russia has more than 10 million owners who use digital currency, the USA more than 20 million, South Africa 7.11% of the entire population use digital currency. India 7.30%, UK 4.95%, Pakistan 4.10%, Spain 2.15%. The underdeveloped nations should also launch digital currency so that their public could also benefit from this modern system. Our country should also welcome new trends. We have before us the example of Ecuador. First, the parliament banned digital currency, but later on, they not only warmly accepted it but launched their digital currency. The most important question here is whether this digital currency secures the future or contributes to economic growth. Digital currency can back up our economy. It can increase payments and transactions, which can also increase the overall GDP of our country as we know that the coronavirus pandemic has affected the world mass economy.
Now we all want a system to secure our payments without extra-plus charges. Digital currency is the only solution to every country's problem these days. India is opening bitcoin as an asset class. China is also experimenting with the digital Yuan. It is launching digital currency and electronic payment in Shenzhen, Xuan, Chengdu and Suzhou. Russians are also using PayPass and Apple Pay. France and South Korea are also working out on digitalising their currency. The next century is the century of digital currency.
Digital currency is not just a currency. It is a technology with many facets, principally blockchain technology, that can increase tax payments and collections 100% more secured and fastest. Today world economies largely depend on US dollars. Digital currency such as Crypto can be the best alternative to US dollars. However, people may prefer the government-backed currency, and central banks worldwide are working on CBDC (Central Bank Digital Currency) in developing countries. They will not like to take risks of replacing their money
with digital currency. If the government allows using digital currency freely, it could also benefit economic growth.
On the other hand, people want authorship from the government. If private companies get authorship of digital currencies such as e-wallets, they might pursue their commercial interests. For example, see abundant e-wallets licenses distributed by NRB (Nepal Rastra Bank), but only a few operate. Security and trust should be the primary concern for e-wallet companies. Moreover, employees of these companies can also leak information, so the most secure and reliable source could be the government. There is an ongoing argument about "centralisation vs decentralisation" in the digital world.
In contrast, decentralisation can benefit over-centralisation, especially when there will be a "single point of failure"; the entire ecosystem will halt when it fails. Nevertheless, governments are reluctant because launching a digital currency requires staff, professionals, a complete setup and security to save the mechanism from hackers. It is so because the national economy depends on it. Nevertheless, many governments have started following China, Ecuador, France and Russia.
Within the next few years, digital currency will be available to all citizens. For example, check out Unelma Platforms's new investment in Crypto coin called, UnelmaCoin ($UNC), an incredible digital cryptocurrency. It is a decentralised coin mainly designed for developing countries. Moreover, it is established on already existing popular cryptocurrencies like Bitcoin, PIVX and Dash. Therefore, rather than considering digital currency as some foreign concept, our government should first unban Crypto, second consider digital currency such as crypto and blockchain technology as an asset class, an investment opportunity and thirdly, start researching, innovating and financing in decentralisation ecosystems.
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