Advancement of digital money
Digital communication, online work and study, commercial and financial transactions in virtual environments are part of today's world. All you need is a smartphone connected to the internet to do all this and more. Computing and information technologies are changing behaviors, habits and the way people and organizations relate to each other and do business.
With that, some things are losing space. And one of them is to have a wallet with banknotes, coins and checkbook at hand. With debit and credit cards, people started to carry a smaller amount of cash.
The trend is the end of paper money. In more advanced countries, the circulation of cash is decreasing significantly. The idea is to eliminate the circulation of paper money, as the cost of issuing banknotes is very high. Brazil follows the same direction, albeit at slower paces. But we are already living in the age of digital money.
Cryptocurrency is a virtual currency, that is, it does not exist physically, materialized in paper notes or coins. It is also not issued by a country's central bank nor is it tied to the monetary system. The most well-known cryptocurrency in the world is Bitcoin, created in 2008 by Satoshi Nakamoto. But there are other types of cryptocurrencies on the market like Litecoin, Ethereum and Verge. Libra is the global cryptocurrency proposed by Facebook. The Digital Yuan is China's digital currency.
Transactions involving cryptocurrencies are not brokered by banking institutions. Operations are carried out on computer networks, using a technology called blockchain, with data encryption. They are distributed and controlled by developers and used by members of virtual communities. The use of cryptocurrencies is increasing. Even the Central Bank of Brazil, which recently launched PIX, is working on creating digital money.
In the age of digital money, companies called fintechs play a key role. Everything is done through apps, from opening a digital account to payments, transfers and financial investments. There is no physical branch, like traditional banking and financial branches. Transactions are managed by applications.
Advantages of using digital money
- Fee value is lower
Transactions involving digital money have lower fees because they can be done without the intermediation of banking institutions.
- Protection of personal data
The information is limited to the amount and basic information on who makes the payment and who receives it. Debit and credit are done electronically, quickly and securely.
- More accessibility, less bureaucracy
With a smartphone connected to the internet, it is possible to create a digital account, without the immense bureaucracy required by the banking system, and start using digital money.
- Transactions are secure
Transactions involving digital money are encrypted, which guarantees confidentiality and security of operations.
The use of digital money is a reality. And companies need to be prepared to offer customers efficient and secure technologies. This requires investments in computing infrastructure, so that transactions take place with practicality and speed, in a 100% secure virtual environment.
In the age of digital money, Information Security is vital to business. ITFácil has been in the market for over 13 years, with extensive experience in mission-critical businesses, such as banking and financial institutions.