Why is it a reward for the financial system to make use of d

Why is it a reward for the financial system to make use of d

From Mathew Philip

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Using a digital China coin will be beneficial in a lot of ways as follows,

 

Increase your financial operations abroad 

Your business will be small until you take it overseas. If you thinking of taking your business overseas, you would have to consider a lot of factors. The first thing to consider is the difference in currencies of your country and the nation you wish to put your money in. A dollar will have a different value from an Indian rupee. Also, you would have to consider the exchange rates to finalize the capital need and profits to expect. Hence, there will be a lot of things to do before expanding your business overseas with your national currency. If you are switching to digital currencies, you can avoid all these difficulties. Every country will have the same cryptocurrency and the value will not change with location. So, you can reduce a lot of issues related to money transfer and your business can grow rapidly overseas. 

 

Financial security

If a business is dealing with a customer online, their payments will also be done online. So, the customers who are paying would have to give their financial information, such as the credit card details and the likes. As these details are highly confidential, it is necessary to ensure the security of the website. But it is not possible to know how secure a website is in terms of financial transactions. All those transactions that can happen online apart from digital currencies could be hacked and misused by cyber thieves. Almost all companies would have experienced such issues at least once. But if the company is accepting digital currencies for transactions, there will not be any risks of fraudulent activities or data theft. No one could hack a digital currency system and hence, your funds will be safe. 

 

Minimized or no inflation

If a country is printing more money just because of the financial downturn, the purchasing power of the people will go low. It is known as inflation and every product will be sold at prices that are multiples of their past values. Although you have millions of your currency with you during inflation, you could only buy a product that is worth a hundred of your currency before the beginning of inflation. Hence, the economy will be stable only when there is control over the production and distribution of money. In blockchain technology, the algorithms will create money and not printing machines. So, there will not be unauthorized or unnecessary production of money and the circulation will not increase in the long run. So, if the governments decide to back digital currencies and let us use them for retail purchases, we can try to overcome the consequences of inflation. 

 

No cost for the transaction

If you are sending money to a foreign customer or receiving from them, you will be paying an amount as the transaction charges. Digital currencies can avoid this additional cost.  

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