Digital currencies, also known as cryptocurrencies, are important because they represent a new and innovative way of conducting financial transactions. Unlike traditional currencies, which are issued and regulated by governments, digital currencies are decentralized and are not subject to the same level of regulation. This allows for greater flexibility and autonomy in financial transactions, and can also provide a more secure and transparent way of conducting business. Additionally, digital currencies can be used to facilitate international transactions, and can help to reduce the costs and risks associated with cross-border payments. This can make it easier for individuals and businesses to transact with one another, and can also help to promote economic growth and development. Finally, digital currencies can also provide new opportunities for investment and wealth creation, as they are not tied to any particular country or economy, and their value can fluctuate based on supply and demand.
The growing use of digital currencies may be proving disruptive to traditional financial institutions, but also opens up new avenues for providing affordable financial services to those currently under-served by the finance industry.
This trend is socially uplifting for those previously underbanked, but also part of many companies’ business models as a customer-acquisition strategy needed in a highly competitive and growing global finance marketplace. Big-tech companies like Amazon, Samsung, Facebook, and Google, as well as mega-retailers like Walmart, have all begun to offer customers innovative financial services and products, such as cryptocurrencies.