Digital currency.pdf
- 2. PRESENTED BY "ENCIPHER 2.0" • SAGOR AHMED • SADIK HASAN • ABDULLAH AL FAHAD • ABU SAID • ISTIAK AHMED TEAM MEMBERS
- 3. CONTENT • HISTORY OF MONEY • DIGITAL CURRENCY • TYPES OF DIGITAL CURRENCY • ELECTRONIC-MONEY • DIFFERENT SYSTEMOF E-MONEY • FUTURE OF E-MONEY • IMPACT OF BANGLADESH ECONOMY • SECURITY • COMPARISON • RECOMMENDATION
- 5. DIGITAL CURRENCY What is Digital Currency? • A digital currency is a medium of exchange that is generated, stored and transferred electronically. • Digital currencies are not typically associated with any country's government or represented in physical forms like the coins and notes of traditional currencies.
- 6. How Does Digital Currency Work? • Digital currencies operate on decentralized networks, typically using blockchain technology. • Blockchain is a distributed ledger that records all transactions across a network of computers, ensuring transparency and security. TYPES OF DIGITAL CURRENCY There are three types of digital currency: • Stablecoin • Central Bank Digital Currency • Cryptocurrency
- 7. Stablecoin What is Stablecoin? • Stablecoin are a variationof cryptocurrenciesand were developed to country the price volatility of regular cryptocurrencies. Central Bank Digital Currencies What is CBCD? • They are currencies issued by the central bank of a country . • They are separatedfrom fait currencies ,which are also backed by the authority and credit of a central bank ,and are another obligation of the institution
- 8. CRPYTOCURRENCY What is Cryptocurrency? • A cryptocurrency is a digital currency, which is an alternative form of payment created using encryption algorithms. • Cryptocurrencies use cryptography for three main purposes; to secure transactions, to control the creation of additional units, and to verify the transfer of assets.
- 9. How Cryptography is Used in Digital Currency? In digital currency systems like Bitcoin, cryptocurrencies rely on cryptography to achieve the following key objectives: • Securing Transactions • Public and Private Keys • Digital Signatures
- 10. E-MONEY • E-money, short for electronic money, is a digital representation of physical currency that exists solely in electronic form. • Instead of using physical cash or cards to make purchases, you can use e-money for various online transactions and payments. • It is stored electronically and accessed through various platforms like mobile wallets, online banking systems, or dedicated e-money apps.
- 11. DIFFERENTSYSTEMOF E-MONEY Electronic Money includes four different systems namely: • Centralized Systems • Decentralized Systems • Mobile sub-systems/Digital Wallets • Offline Anonymous Systems
- 12. CENTRALIZED SYSTEM • Many systems—such as PayPal, e-Cash, Web-Money, Pay-owner, cash-U, and Hub Culture's Ven will sell their electronic currency directly to the end user. • Other systems only sell through third party digitalcurrency exchangers.
- 13. DECENTRALIZEDSYSTEM • Decentralized e-money is stored and flows through a peer-to-peer computer network that directly links users, much like a chat room. Some decentralized types: • Bitcoin • Monera • Litecoin • Mobilesub system
- 14. BITCOIN • Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto, who published the invention in 2008 and released it as open- source software in 2009. • The system is peer-to-peer; users can transact directly without needing an intermediary. • Transactions are verified by network nodes and recorded in a public distributed ledger called the block chain. • Bitcoin is often called the first cryptocurrency.
- 15. MONERO • Monero is a cryptocurrency that uses a blockchain with privacy-enhancingtechnologies to obfuscate transactionsto achieveanonymityand fungibility. • Developersused this concept to design Moneroand deployedits main-net in 2014 • Monero is an open-source pure proof-of work cryptocurrency. It runs on Windows, Mac, Linux and FreeBSD
- 16. Litecoin • Litecoin (LTC) is a cryptocurrency created from a fork in the Bitcoin blockchain in 2011. • It was initially designed to address the developer’s concerns that Bitcoin was becoming too centrally controlled, and to make it more difficult for largescale mining firms to gain the upper hand in mining.
- 17. FUTURE OF E-MONEY The future of e-money promises seamless, secure, and decentralized transactions. • Advanced technologies like blockchain, digital wallets, and biometrics will become mainstream, enabling instant global transfers and reducing transaction costs. • Governments and businesses will explore central bank digital currencies (CBDCs), fostering financial inclusion and transparency. • As cash usage declines, privacy concerns and cybersecurity measures will be crucial considerations. Overall, the future of e-money points toward a convenient, interconnected, and technologically-driven financial landscape.
- 18. Potential Benefits of Digital Currency in Bangladesh: • Financial Inclusion: With digital currency platforms, individualswithout access to traditional bankingservices could participatein the economy, making financial transactions more accessible to all. • E-commerceGrowth: The adoptionof digitalcurrencies could boost the growth of the e-commerce sector in Bangladesh. With secure and efficient payment methods, consumers may find it easier to shop online, leading to increased economic activityin the digital marketplace. • Transparencyand Efficiency: Digitalcurrencies operate on blockchaintechnology, which provides transparency and traceabilityin financialtransactions. • Lower Transaction Costs:Digital currencies can reduce transactioncosts compared to traditional payment systems. This could benefit businesses by lowering their expenses and encourage more economic activity.
- 19. Challenges and Risks of Digital Currency in Bangladesh • Regulatory Concerns: The introduction ofdigital currencies could raise regulatory challenges for the Bangladeshigovernment. Issues relatedto money laundering, taxevasion, and consumer protectionmay need to be addressed through appropriateregulations. • FinancialStability: Central banks may need to carefully consider the implicationsand develop strategies to mitigate risks. • Volatility: If citizens and businesses in Bangladeshstart using highly volatilecryptocurrencies for everyday transactions, it could lead to uncertaintyand hinder wider adoption. • TechnologicalInfrastructure: For digitalcurrencies to function effectively, a robust technologicalinfrastructure is necessary. Not all regions in Bangladesh may have access to the internet and the required technology, which could limit the widespread adoptionof digital currencies.
- 20. Security measures of digital currency • Cryptocurrency is the major application of blockchain technology, and many professionals use this digital currency to buy goods and services. • It is a profitable investment when done in the right way. As the cryptocurrency services do not offer a security level as banks, certain risks and precautions must be looked over and implemented while investing in cryptocurrency. So we should take some serious measures to avoid commoncyber-attacks.
- 21. Security Awareness ● Try to avoid storing cryptocurrency on digital storage. ● Do not use public wi-fi while making transactions. ● Also, make sure to keep the security level high and do not install any unsecured apps. ● Use 2-stageauthentication and verification for better secure transactions. ● Make sure to stayaway from the bitcoin gambling sites. ● Hold cryptocurrency privately. ● Put a unique and robust password. ● Do not share passwords, key, and wallet details with anyone. Cyberattacks are very severe, and investors must follow these basic and easy steps at their level to avoid any loss.
- 22. Advantagesand Disadvantages of Digital Currency Advantages of digital currenciesare: ● Faster transaction times. ● Do not require physicalmanufacturing. ● Lower transactioncosts. ● Make it easier to implement monetary and fiscal policy. ● Offers greater privacy than other forms of currency. Disadvantages of digital currenciesare: ● Can be difficult to store and use. ● Can be hacked. ● Can have volatileprices that result in lost value. ● May not allowfor irrevocabilityof transactions. ● Still has limited acceptability
- 23. • Digital currency reduces overall cost of operation drastically compare to paper money. • It is more environmental friendly as there is no need of paper and no paper means no cutting down of trees. • As the technology is new, there are some security and stability concern about “E-money” which are controllable in mostof the cases. • There should be some legal guidelines and law about this to prevent money laundering and other unethical uses of digital currency. • Banks, financial intuitions and governments should come forward and work along with the tech-giants such as Google, apple, Microsoft, face-book etc. to develop the revolutionary but secured and stable transaction system using “digital currency.”
- 24. THANKS!