Do you realize that digital money is one of the core technologies that run our world? Without a form of money that can be transferred securely in the digital realm, the Internet will not be as it is today.
The allure of using digital money is certainly not a recent trend. In fact, it has been a long standing habit among consumers before we even have the Internet. Way before we can send payments with our smartphones, we have already been using credit cards. The physical cards may be made of plastic but the monetary transactions between banks are digital in nature.
Of all the technologies that may emerge and disappear, you can be assured that digital money will continue to evolve. For example, a fairly recent innovation will be cryptos and Bitcoin, a form of digital money that has made it possible to transfer money without needing a bank or even a government.
The Allure of Digital Money
There is an increasing number of consumers who are using digital wallets, e-banks and other forms of online platforms. This growing trend indicates that digital money has brought forth many practical benefits to society.
For example, digital transactions have made it a breeze to buy things online. You can even easily buy items from a country on the other side of the world. The blockchain innovation has also made peer-to-peer payments possible.
As the decentralized Web3 industry expands, we can expect business costs to reduce after the redundant intermediaries are removed in the supply chain. Reducing living cost can certainly benefit us all especially during these times when consumers face excessive price inflation.
Many people also probably do not realize that a cashless society makes a city safer to live in. When shops carry less cash, robbers will have less motivation to violently steal from people on the streets. The thieves, robbers and scammers are of course still around but many of them now ply their devious trades online.
Tech Tip: Achieve work-life by going digital.
Don’t neglect to take advantage of the wide variety of digital tools, services and resources that can grant you freedom from traditional work culture. Use my affiliate link below to explore digital tools offered by Namecheap. I may earn a commission if you make an online purchase at Namecheap’s website.
Namecheap New Business Hub – best offers for digital entrepreneurs.
How Digital Money Is Impacting Our Lives
Photo by Ercan Şenkaya
Perils of Using Digital Money
While digital money offers convenience and even makes our societies safer, most people do not seem to foresee the risks of over reliance on digital money.
For starters, digital security is a crucial concern. Many users complain about needing to jump through multiple hurdles to access their digital assets or money. The programmers need to implement these security steps because no digital system in the world is totally secure. It does not matter if you are using a premium e-banking service, e-wallet or other forms of digital storage. They are all vulnerable to hacking, phishing, and malware. A single security breach can result in substantial financial and data losses for users.
Central Bank Digital Currency (CBDC) introduce another set of concerns. A digital currency issued by the government can erode citizen privacy as every transaction can be monitored and retained by authorities. This level of surveillance raises fears about potential misuse, such as restricting access to funds or targeting individuals based on habits or demographics.
Additionally, reliance on digital systems increase the risks of outages or system failures, which could disrupt access to money in emergencies. As we had all experienced before, it does not take a natural disaster or even an act of war to disrupt the interconnected computer systems that our societies have come to depend on so much.
These pitfalls highlight the need for balanced regulation and robust technological safeguards as digital money becomes more mainstream. Paranoid users might to resist the advancement towards a digitized society by sticking to good ol’ cash but it will definitely prove to be a uphill task in this modern age.
Tech Tip: There’s so much you need to know about cryptocurrencies.
You can now enrol in FREE cryptocurrency online courses with Alison. You only pay if you need the certificate and I may get a commission as an affiliate.
Conclusion
Digital money has revolutionized the financial landscape, offering speed, convenience and global accessibility. Whether through digital wallets, e-banking, or cryptos, it allows users to complete transactions instantly without the need for physical cash or face-to-face interactions.
For many, going digital provides a pathway to financial inclusion and economic participation. Even small businesses in rural areas can participate in the global economy if they accept digital money. For enterprises, it can streamlines business operations and support e-commerce. For individual users, digital money makes it easy to help control budgets and invest with just a few taps on a smart device.
Yet, alongside these benefits come significant challenges. Security breaches, digital fraud, and identity theft are growing threats in a cashless economy. This is an issue that is very much prevalent in many modern countries despite going cashless has made our streets safer from thieves.
Additionally, over-reliance on digital systems can be detrimental when there is a major outage. Furthermore, the less tech savvy individuals will also be left out of economic opportunities if a society were to go fully cashless.
