Digital money moves transactions from the physical to the digital world, offering a series of benefits that makes paying and receiving money smoother, easier, and quicker.
There are many benefits associated with going cashless. Digital money exists virtually which means you don't need to carry cash around. No need to stand in the long queues outside the bank, no more counting pennies and doing complicated currency exchange calculations, and most importantly, no risk of carrying cash in your wallet which may be a target for robbery.
Ease of Transactions
Another key benefit of digital money is the ease and the speed of completing the transactions. While credit card transactions can take a few days to be processed, cryptocurrency transactions occur instantly. In addition, compared to the traditional banking system where you can only see where the money went every couple days, with cryptocurrency you can track your money every second of the day. Lastly, you can send and receive cryptocurrencies no matter where you’re located on the globe. For example, you can make an exchange from your living room to someone in the US immediately. No foreign transaction fees needed.
When you store your money in banks, they need to make a profit for holding onto it for you, which means fees are charged for using ATMs, transactions fees, and closing fees. The beauty of cryptocurrency is that you own your money so you will never have to pay a fee for using your own money. Since everything is traceable, merchants also cannot charge extra fees without being noticed. They must talk with the consumer before adding any charges.
Benefit to the society
The advantages of digital money are not limited to individuals. It also has an impact on the economy of the country as the reduced use of cash can help constraint the gray economy and prevents money laundering. This can also improve tax compliance which in the end benefit everyone in the society. Moreover, using digital money fast paces how money gets circulated and increases the velocity of money.