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Digital Currencies: What types exist?

Editorial Airtm

November, 21, 2023

5 min. reading

Internet has ushered in a technological era where online payments have opened up infinite opportunities. Thus, digital currencies have emerged as a financial innovation that is transforming the way we handle money. Find out why!

Digital currencies, what are they and what types exist?

They are forms of electronic money that operate in digital environments, with no physical existence. These currencies are stored and transferred online, using cryptographic technologies to ensure transaction security. There are various types, including:

  • Cryptocurrencies: The most popular examples include Bitcoin, Ethereum, and Litecoin. These currencies use blockchain technology to record and verify digital payments in a decentralized manner.
  • Central Bank Digital Currencies (CBDC): Currencies backed by governments and issued by central banks. Unlike cryptocurrencies, CBDCs are regulated and have the trust of government backing. For example, some transnational corporations make payroll payments with this type of currency, according to the different types of employment contracts they employ.
  • Private Company Coins: Some companies issue their own coins for use on their platforms. An example of this is USDC from Circle, one of the most capitalized stablecoins in the market.

The revolution of digital currencies

Currently, these currencies are triggering a transformation in the way we understand and use money. This innovation is bringing about significant changes in various aspects of society and the economy, driving a true financial revolution.

The impact of digital currencies today

Digital currencies are having a profound impact on the present world in various areas:

Global access to finance

They enable anyone with internet access to participate in global financial transactions, even if they don’t have access to traditional banking services.

Fast and efficient transactions

Transactions with this type of currency are carried out online, in a matter of minutes or seconds. This eliminates delays associated with traditional banking systems and international transfers.

Paths to financial inclusion

These currencies have the potential to provide financial services to unbanked or underbanked individuals worldwide. This improves financial inclusion and reduces the gap between marginalized sectors and the financial system.

Business innovation

These currencies drive the creation of new businesses and business models by enabling innovation in payments, transfers, and financial systems in general.

Digital currencies in the business world

Now, these currencies have a significant impact on the business world, especially in areas such as payments and financial operations:

Fast and global payments

Companies can use these currencies to make fast and secure international payments, avoiding intermediaries and reducing settlement times. In an increasingly globalized economy, this is crucial.

Lower transaction costs

These currencies can reduce costs associated with financial transactions, such as exchange fees and bank commissions. For this reason, they can be useful for both businesses and individuals.

Innovation in business models

They also enable the creation of new business models, such as token-based rewards and loyalty systems.

Are you ready to experience the benefits of digital currencies in your business operations? Explore how Airtm can assist you with mass payments and more. Discover the advantages of using Airtm for enterprises with Enterprise or proceed to open an Airtm account, where you can work with USDC. This way, you can prepare for a more digital and efficient financial future.

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