Digital currencies have gain popularity in recent years as these exists in electronic form and are mostly used for transaction over internet. In my view these digital currencies have both positive and negative drawback.
Firstly, these currencies are decentralized which has fueled people’s interest in cryptocurrencies as block- chain technology is being used for secured transaction. Similarly, these currencies offer faster and cheaper cross border transactions compared to traditional banking system specially for remittance, online purchase and peer to peer transfer. Likewise due to global financial crisis in 2008, many people have become delusion in traditional banking system where online currencies give more them more control over their finances.
On the other hand, these currencies are highly volatile making them risky and unreliable as a stable store of value for everyday transaction. Likewise these transactions are irreversible, if it is lost or stolen than there is no central authority to help recover them. Also these currencies are difficult to regulate, raising concerns over money laundering, fraud and illegal activities.
To conclude, digital currencies has positive innovations in technology and lower transaction costs, however it also presents challenges like volatility and regulations where individuals and society need to navigare these risk and opportunities as they move forward.