Digital money is growing at a faster rate than the use of cash i.e. physical money. Using the likes of contactless facilities and a greater use of smartphone payment wallets, the use of digital payments is quickly becoming widely accepted on a global scale.
In many instances, using digital currency is a benefit – it alleviates financial crime which previously, individuals have been subjected too.
Since the introduction of using digital money to pay for goods, theft of physical money has been greatly reduced and the illegal use of bank cards, the cloning of cards and the copying of pin numbers has also seen a decline. Counteractive to this, unfortunately financial crime hasn’t gone away completely, it is just operating further up the financial supply chain.
Despite banks implementing cutting-edge techniques to combat against digital financial fraud, such as rules-based logic and ML technologies. The opportunity to hack digital money through illegal cybercrime such as the threat of phishing emails and with ransomware on the rise. This means that, financial criminals are still very much finding loopholes within the sector for their own gain.
Cryptocurrency is proving to be a safer option for digital money
However, cryptocurrencies could change this situation to offer a new alternative for financial markets. Whilst they have endured a rocky reputation in the early days of their development, they are making headway and are proving to be securer than our current financial system. Built on blockchain technology, the digital money is much harder to hack or intercept than traditional financial frameworks. Not only that, but payments are also processed faster – completed in seconds rather than minutes. This means that, there is no need for third party involvement such as the requirement for banks and building societies, which instead are eliminated from the financial supply chain and subsequently remove a layer of vulnerability. Further to this, blockchain independently automates and evaluates its own processes which eradicates any other involvement. It also eliminates inflation as it is not controlled by a single country, government, or central bank.
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