Advantages and disadvantages of digital money!

Digital money was introduced to make cross-border transactions faster and cheaper. Which is an online based money. which are controlled by the central banks of different countries. However, this type of digital money has advantages as well as disadvantages. Yesterday I wrote about digital money in my post today I will discuss with you the pros and cons of digital money. So let's start the discussion:

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Advantages of digital money

• The biggest advantage of digital money is that it eliminates middlemen. Also, cross-border transactions can be done very quickly through digital money. Where traditional banking systems were time consuming. Moreover, it is possible to reduce the extra cost through these transactions because the cost of such transactions is low. Also, this digital money has the potential to revolutionize the remittance industry.

• Digital money is usually not for physical use but it is online based. There is a fear of money being stolen so we physically store it in a wallet, safe or bank vault to secure it. In this case, there is no need to keep digital money in such wallets, safes or bank vaults.

• Those who are not associated with banks can also be included in banking services by using such money. Transactions using this type of money do not require intermediaries. Manual accounting and separate entity-specific ledgers lose their validity for standardization and automation. Also privacy can be maintained many times through these digital money transactions.

Disadvantages of digital money

• Such money is usually online based which is not physical. Due to which the possibility of hacking or spamming them increases a lot. Due to the fact that Kal is online based, various digital currencies including this kind of money have been hacked from time to time. So they become risky for users. Moreover, we know that there are many people who are not able to use such money. They are much more likely to be hacked.

• Another problem is that such digital money is often anonymous when it is transacted. Cash is anonymous, and its users are almost impossible to track and trace, while digital money is traceable. As a result, the possibility of money laundering will increase through it.

• Also, the technology used to prevent such digital money from being hacked requires spending a lot of money. Moreover, the custody solution has to pay a lot of fees which is another inconvenience for the users.

However, these digital currencies have advantages as well as disadvantages. We know that it is natural that every object will have some advantages as well as some disadvantages. But such currencies play the most important role as they save people a lot of time and reduce many fees for cross-border transactions.