The world keeps revolving and the revolution of the world brings about changes in our daily lives. Advanced technology, artificial intelligence, and many more.
Gone are the days of a trade by barter, days when cowries and seashells were used as a means of payment, the introduction of coins and naira, and now it’s all about digital money.
Through this financial journey for every new stage, the people of that time moved on with it. When it was time for the cowries, people diverted from the trade by barter because they felt it would be way easier and more efficient.
We also found ourselves in a world of innovation of digital currency, and physical money being in existence and circulation. And it’s so obvious that digital currency has begun to take over physical currency. With time everyone would be left with no choice but to embrace the new and existing financial freedom.
The new way of finance known as the decentralized system of finance also comes with its advantages and disadvantages. The existing system of finance known as the centralized financial system comes with its advantages and disadvantages.
Fast transactions: Though it’s faster to make transactions with cash on counters how about sending money a longer distance or even abroad. That’s when the fastest means of digital money plays its role more efficiently than physical money. With your mobile device at your convenience, you can send any amount at any point in time.
Minimal fees: Digital money emerging as the fastest means of transactions would have had a bad side if there is a lot of costs attached to transferring and receiving. But it came about with a minimal fee that the sender won’t even have anything to bother about when making any transaction. This gave it another upper hand compared to physical money.
Confidentiality: Digital money is way more reliable when it comes to confidential information compared to the fiat currencies when your transaction would be documented and also handled by a third party like banks, collectors, and other financial bodies. This could put one's money at the risk of theft, meanwhile, for the digital currency, the transactions and history of the coin are stored not the spenders.
Decentralized and autonomous: Digital currency has paved the way for each individual to have full access to their money thereby giving them the financial freedom to their money. It is way different and better than the centralized financial system which is regulated and controlled by government policies which could also mean imposing restrictions and bans on one's financial assets.
