The future of digital currencies looks promising, as these currencies are radically transforming how value is exchanged and money is managed in the modern age. Digital currencies such as Bitcoin and Ethereum are among the most prominent examples of this transformation, relying on financial technology and blockchain to provide transparency and decentralization.
*Impact on the Global Financial System*
Digital currencies are changing the global financial system through¹:
- *Reducing reliance on traditional intermediaries*: They do not require intermediaries like banks or governments to execute transactions, which reduces transaction costs and improves execution speed.
- *Increasing transparency and reducing corruption*: All transactions are recorded in a public ledger known as "the blockchain", ensuring high transparency and security.
- *Facilitating international trade*: Companies can deal directly with customers and suppliers around the world without the need to go through traditional banks.