Online Currencies Have Become More Common In Recent Years

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The practice of paying for products and services using online currencies has gained momentum over the last few years. This is mainly due to the development of the internet. Without the internet, digital money transactions cannot be performed. In my opinion, this is largely a positive development. However, there are plenty of safety concerns too.

The internet has enabled people to buy or sell without using cash. In fact, now much of the money in circulation has no physical existence. People are transacting digitally and banks and digital payment apps are enabling these transactions. This saves both time and money. In India, people can now send money from one phone number to another phone number. People only need to know the phone number of a person to send them money. This has brought a lot of convenience. Gone are the days when we had to personally visit our bank and wait in the queue for hours to make a transaction. Online currency transactions also allow people to keep a record of every financial transaction they make. These records come in handy in the event of a dispute.

On the other hand, online currencies like crypto currencies are not legal in most countries. Hence, these currencies are not backed by the governments. Consequently, people who use crypto currencies like Bitcoin are more likely to fall a prey to cyber crime. Another downside is that crypto currencies can be used to fund illegal transactions. Since people can make financial transactions anonymously using Bitcoin and other crypto currencies, they are often used for gambling, smuggling or terrorist recruitment online.

To conclude, online currencies are becoming more popular because almost everyone has access to an internet connection and smart phone these days. Digital currencies have enabled people to conduct financial transactions on the go. However, there is the risk of fraud.  

Manjusha Nambiar

Hi, I'm Manjusha. This is my blog where I give IELTS preparation tips.