Why do people want a new currency and specifically digital currency?

By Wirba Brice Divine Ransinyuy. [email protected]

Let’s imagine a world stress free from financial setbacks, inconsistency, sorrows and difficulties. The world and its inhabitants are tired of a faulty currency that constantly suffer from undesired financial situations thus affecting its users in multiple ways. And when it does happens, affects the global economy and more particularly the country that’s affected. Looking at a case like South American countries that face constant on rise of economic problems and crisis, they start thinking of a way to bypass their weak currency and eventually weak economy. This is the case with countries like Chile, Venezuela that have been facing economic for a very long time. Due to these crisis, they see a constant rise of political instabilities affecting their respective countries.

These economic crisis often lead to high inflation, no jobs, difficulty in having good standards of living and particularly due to high inflation, the economic situation will be destabilized and affect the functioning of state affairs. More so, it leads to a fall in exchange rates.

For many people it has become more than them to bear. This unusual and unwanted crisis force the inhabitants of these countries and the world at large to seek refuge in a currency that can’t be affected due to the fall in the sale of petrol or natural resources in the country that support the circulation of paper money in their system.

As analyze by Joseph Stiglitz, Nobel Laureate in Economics in 2001 and former Chief Economist of the World gave a deep analyzing of the present currency and an understanding of its properties and its functionalities. He goes further by explaining why people want a new currency and specifically digital currency. He says the reason people want a new currency is to have a cash flow of capital in order to participate on various activities. Though he is not a fervent artisan of digital currency, he admits it is the current voltage of usage of currency as it represents a considerable threat to paper money in particular and currencies in general.

More so, due to the fact there is no transparent financial transaction like in the case of paper money, the more people are going into it as it gives them the opportunity to have a currency that deals only between two parties and there is no third party to control or limit their financial transactions like it is the case with banks, who limit and control people’s use of money. And at times, it is done against the people’s will, whereas with digital currency they can get into any transaction and deal with the amount of money they want.