Digital Currency: The Transition to a Cashless Society
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During the 1800s, the United States banking system was undergoing a transition to central banking. The history of the Second Bank of the United States shows that during this shift there was a debate to determine who should control the money supply. Today, the world is undergoing a transition to a cashless society through the use of digital currencies. On January 3, 2009, the release of Bitcoin (Ƀ/BTC), the world’s first fully decentralized digital currency, sparked a revolution. Unlike traditional currencies that are issued by central banks, Bitcoin has no central monetary authority. Because of Bitcoin’s growing mainstream adoption, economists have been exploring the viability of countries adopting centralized or decentralized digital currencies. Based on this research, it is too early to speculate if the path toward a cashless society will be centralized or decentralized. This is because there is no alternative digital currency that has been implemented. As today’s world is more globalized, any sort of digital currency would have worldwide consequences. Therefore, future research regarding this transition must be taken very seriously.