https://www.investopedia.com/terms/d/digital-currency.aspMERITS OF DIGITAL CCURRENCY
Currency in other words means money while digital means electronics. Digital currency is regarded to any forms of payment, medium of exchange, that is generated in a purely electronic form that is all monetary transaction that takes place through an online system and is not tangible. It is otherwise called electronic money, electronic currency or cybercash. Digital currencies can only be assessed with the use of mobile phones or computers because the only exist in an electronic form and they have no physical attributes.
FEATURES OF DIGITAL CURRENCIES.
*They are only collected and is used only in a digital electronic form. *They can be used issued or accepted electronical a among the members of a specific virtual or private organisations or groups. *They can be regulated or unregulated but only available in a digital form or electronic form.
TYPES OF DIGITAL CURRENCY
Crypto currency:- this uses cryptography to secure their transactions and the most popular form is Bitcoin.
Virtual currency:-it is an unregulated electronic currency that are often used for online gaming and gambling.
Central bank digital currency:-these are electronic currencies that are issued by central banks.
MERITS OF DIGITAL CURRENCY OVER PHYSICAL CURRENCIES.
1.Fast transaction time and speed
2.They have lower transaction costs that is their transaction costs can be minimal or zero
- It is easily accessible as the owners just need a mobile phone or computer with the help of internet connection to use it.
- it is easy to implement fiscal and monetary policy.
- in do not require any physical manufacturing
- it is more private and confidential than any other forms of currency and are most secure.