The future...degital currencies
Digital currencies started to spread and penetrate into economies ،it looks like an economic and technical trend, but will it be the future?
The ancient man began the first economic system by bartering and then evolved to create the first currencies and be of silver, copper or gold and the value of the currency consists of the value of the metal made of it, then evolved to be made of papers, whether cotton or plastic recently and after the economic crisis appears The dispute and the need for the emergence of another way to deal with and appear with digital currencies, which cause problems for governments and in turn create a new type of digital currencies to be the future of banking and commercial transactions and may be the new form of the world’s economies and I will discuss with you everything related to this topic briefly and sufficiently, God willing.
Cryptocurrencies are currencies for online trading or digital transactions and cannot be used in another domain where they do not have a physical presence outside of computers or digital accounts.
There are a lot of classifications of digital currencies, there are virtual currencies that are not regulated and controlled by the developer, or the funded organization, or its network protocol, and there are cryptocurrencies or cryptocurrencies that use cryptography to secure and define transactions and control the making of new cryptocurrencies and virtual currencies are the general term and includes all of these.
In April 2021, the Central Bank of Egypt allowed banks to launch their own digital currencies under the supervision of the Central Bank and equal to the Egyptian pound, as at that time there was trading worth 22.million pounds in 2020 and that there are approximately 1.7 million Egyptians who own digital currencies, and this step came in my opinion to reduce the risks of digital currencies and to see applications such as InstaBay and others and provide a parallel market, but the problem is that these currencies are used in trades Some of them are illegal and untraceable such as cryptocurrencies.
The first to propose the idea of digital currencies was David Shawm in a research paper entitled (Blind Signatures for Untraceable Payments) in 1983 and founded a company to promote this idea, but it went bankrupt in 1998, and that was because of the strangeness of the idea and people’s aversion to what they do not know and the lack of support of governments at this time, then came electronic gold in 1996, which enjoyed millions of users before it was suspended by the US government in 2008 and I see that it was stopped because of The government’s fear of it and the effects it can have on banks and traditional transactions at the time, and PayPal appeared in 1998 and then Bitcoin appeared in 2009 to start a new era in banking transactions and appear and digital transactions that we are witnessing today, which contributed to the rise of the idea and not to collapse like the previous attempts mentioned is the development of technology and ease of access and availability, especially since the first to use digital currencies were people on deep web sites and They were limited to them for a while, and they used cryptocurrencies to buy and sell anything illegal without risking their identities being exposed to the government or ordinary people.
Digital currencies provide speed of transactions and do not need to be printed or checked and transaction costs are more economic, facilitate the application of a financial policy, and provide privacy more than securities because transactions do not necessarily need personal data and should not appear to anyone But it is also difficult to use and store, cyber penetrating, and its value is fragile and volatile and may cause heavy losses, and Some of them do not receive popularity and acceptance from societies, but they have become a peer of the traditional banking system and an enemy of it
And we see that with time and the spread of the idea begins to break the obstacles we find development in its protection systems and the attempt of companies to sell their idea to people and peoples and promote it as a new investment alternative and with time it will certainly reach what capital seeks, which is full control over economic systems and there is no doubt that it will open a door to manipulation of systems, especially that the currency manufacturer will have the sole control over the trends of the currency price, and It has doors for manipulation as we see in the stock exchange and as we saw in this market of manipulation like the tweet that Elonmask tweeted to promote his currency Doge coin indirectly.
Digital currencies for central banks from their name are created by the central banks of the state and have the real value of the same state currency to be the honest competitor and the new legitimate way of digital transactions without indulging in the problems of private digital currencies that are not subject to control and that are used in money laundering, suspicious transactions and forbidden trades, and of course governments have the tools to solve their problems and Benefiting from it, especially as it is a new door for expanding the economic form In 2020, the People's Bank of China began testing its digital currency, which is the digital yuan, and millions of Chinese citizens use it in daily transactions, and it is directed to be a digital currency for buying and selling, and in the same year, the Swiss Central Bank began tests on its digital currency, the Koruna, to be available to the public, and there are other countries such as the European Union looking at launching the digital euro to be for Europeans, and England is also on its way to launching Bretcoin, which is a cryptocurrency, and Canada is also looking to launch its own digital currency, and all this is due to the desire of countries to rely less on paper money, save printing expenses, and also change the system of transactions to suit capitalism and its speed And also we can see a new alternative in the arena that is the new and better alternative, and the idea in that is that the value of money no longer depends on the metal it is made of, but depends on economies, supply and demand, and as Robert Kiwasaki said, "It's fake money," and this raises the question: Will digital currencies be the key to a new economic world because of the speed and ease it provides, or will it be like most of the technical trends that companies earn from them through Promoting it, even if it is not useful in its field, most companies promote trends to give greater value to their products, but I see that this is not the scene here because digital currencies are like a dark web in its story and content, both of which have ascended by hiding behind screens and the dark internet has become a whole world other than the world of the Internet as we know it without restrictions or moral norms, and this indicates that the future of digital currencies, in my opinion, will be either extinction or the limited spread among some groups because of its seriousness or that it will be the new economic world and this depends on the development that this world will witness in the coming years and the steps that countries will take and whether they will actually apply it or not find it useful New economic It is only a numbers game and the biggest number is the one who will win, .
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