Economy
The Advantages of Digital Currency for Digital Economists
In the evolving landscape of finance and economics, digital currency has emerged as a revolutionary force that is reshaping how value is transferred, stored, and understood. Digital economists, those who specialize in the analysis and optimization of digital financial systems, are uniquely positioned to benefit from this new form of currency. This article explores the advantages of digital currency for digital economists, highlighting the transformative potential it holds for the future of economic systems.
Enhanced Transparency and Trust
Real-Time Transaction Tracking
One of the most significant advantages of digital currency is its inherent transparency. Transactions made with digital currency are often recorded on public ledgers, accessible to anyone with the appropriate software. This level of transparency allows digital economists to track economic activities in real-time, providing them with data that is accurate, up-to-date, and unaltered. This capability is invaluable for economic modeling and forecasting, as it eliminates the lag and inaccuracies associated with traditional financial data. You can also explore Quantum Apex AI for further information.
Reduced Fraud and Corruption
The transparent nature of digital currency also plays a crucial role in reducing fraud and corruption. Since every transaction is recorded and immutable, it becomes exceedingly difficult for individuals to engage in fraudulent activities without detection. For digital economists, this reduction in fraud means more reliable data and a cleaner economic environment to study and optimize. It also increases trust in digital financial systems, encouraging broader adoption and innovation.
Lower Transaction Costs
Elimination of Intermediaries
Traditional financial transactions often involve multiple intermediaries, such as banks and payment processors, each taking a cut of the transaction value. Digital currency eliminates the need for these intermediaries by enabling direct peer-to-peer transactions. This reduction in intermediaries leads to significantly lower transaction costs, making digital currency an attractive option for both consumers and businesses. For digital economists, lower transaction costs mean more efficient markets and greater potential for economic growth.
Increased Financial Inclusion
Lower transaction costs also pave the way for greater financial inclusion. In many parts of the world, traditional banking services are either inaccessible or prohibitively expensive for a significant portion of the population. Digital currency, with its lower costs and ease of access, provides a viable alternative for these underserved communities. Digital economists can leverage this increased financial inclusion to study new economic behaviors and develop strategies to integrate these populations into the global economy.
Speed and Efficiency
Instantaneous Transactions
In a digital economy, speed is of the essence. Digital currency transactions are processed almost instantaneously, regardless of the geographical distance between the parties involved. This speed is a stark contrast to traditional banking systems, where international transactions can take days to settle. The efficiency of digital currency is particularly beneficial for digital economists, as it allows for the real-time analysis of economic activities and the immediate implementation of economic policies and strategies.
Automation and Smart Contracts
Digital currency is often associated with smart contracts, which are self-executing contracts with the terms of the agreement directly written into code. These contracts automatically execute when the conditions are met, eliminating the need for intermediaries and reducing the potential for human error. For digital economists, the automation provided by smart contracts offers a new dimension of efficiency, enabling more complex economic systems to be managed with minimal human intervention.
Global Accessibility
Borderless Transactions
Digital currency is not bound by geographical borders, making it a truly global form of money. This borderless nature allows for seamless international transactions, fostering global trade and investment. Digital economists can take advantage of this global accessibility to study cross-border economic activities in real-time and develop strategies to optimize global economic interactions.
Empowering Developing Economies
The global accessibility of digital currency also holds significant promise for developing economies. In regions where traditional banking infrastructure is lacking, digital currency provides a means of economic participation that was previously unavailable. Digital economists can study the impact of digital currency on these emerging markets, gaining insights into how digital financial systems can be leveraged to drive economic growth and development.
Increased Security
Advanced Encryption and Security Protocols
Digital currency transactions are secured using advanced encryption and security protocols, making them more secure than traditional financial transactions. This increased security is crucial in an era where cyber threats are becoming increasingly sophisticated. For digital economists, the security of digital currency ensures the integrity of financial data, allowing for more accurate analysis and modeling.
Reduced Risk of Theft and Loss
Traditional forms of money, such as cash, are susceptible to theft and loss. Digital currency, on the other hand, is stored in digital wallets that are protected by encryption and, in many cases, multiple layers of security. This reduced risk of theft and loss makes digital currency a safer option for storing and transferring value. Digital economists benefit from this increased security by having more reliable and stable financial systems to analyze and optimize.
Conclusion
Digital currency offers a multitude of advantages for digital economists, from enhanced transparency and lower transaction costs to increased speed and global accessibility. The security and efficiency provided by digital currency pave the way for new economic models and strategies that were previously unattainable. As digital currency continues to evolve, its impact on the field of digital economics will only grow, offering digital economists unprecedented opportunities to shape the future of global finance.
By Adedapo Adesanya
The World Bank has approved a $500 million facility for Nigeria to expand longer-term lending to small and medium sized businesses.
Approved under the Fostering Inclusive Finance for MSMEs in Nigeria (FINCLUDE) project, the package comprises a $400 million International Bank for Reconstruction and Development (IBRD) loan and a $100 million International Development Association (IDA) credit. Both IBRD and IDA are members of the World Bank Group.
The scheme will be implemented by the Development Bank of Nigeria (DBN), with credit guarantees provided through DBN’s subsidiary, Impact Credit Guarantee Limited (ICGL).
FINCLUDE is designed to address constraints faced by micro, small, and medium enterprises (MSMEs) in Nigeria which despite accounting for most businesses and nearly half of gross domestic product (GDP) face long-standing barriers to formal finance.
Fewer than one in 20 MSMEs have access to bank credit; loans are often short-term and costly; and collateral requirements exclude many viable firms. Women-led enterprises, which make up a substantial portion of MSMEs, are disproportionately affected, facing higher rejection rates and limited tailored products. Agribusinesses, central to food security and rural livelihoods, similarly struggle to obtain more extended‑tenor financing for equipment, processing, storage, and logistics.
However, FINCLUDE seeks to address these constraints by expanding access to affordable, longer-term finance and tailored solutions for segments with the most significant development impact.
Speaking on this, the World Bank Country Director for Nigeria, Mr Mathew Verghis, said, “FINCLUDE is about jobs, opportunity, and inclusion. By expanding access to finance for viable MSMEs—particularly women-led firms and agribusinesses—Nigeria can accelerate growth and deliver tangible benefits across communities nationwide.
“The project will make it easier for deserving small businesses to get the finance they need to grow and hire workers. With better support for lenders that practice inclusive finance and fairer, longer-term loans for entrepreneurs, we are backing the people who power Nigeria’s economy—especially women and those in agriculture.”
The FINCLUDE project will help to mobilise private investment and expand access to and usage of inclusive, innovative financial products for MSMEs nationwide.
Through DBN, the operation will strengthen the capacity of banks, including microfinance banks and non-bank financial institutions such as financial technologies (fintechs), to provide larger loans with more reasonable repayment periods, and—through ICGL—will scale partial credit guarantees so that lenders can extend credit to businesses they might otherwise consider too risky.
Targeted technical assistance will modernise loan appraisal by leveraging AI-enabled digital platforms to accelerate decision-making, improve data quality, strengthen impact measurement, and build capacity for both MSMEs and participating financial institutions.
According to the World Bank, a strong emphasis on inclusion will ensure that women-led businesses and agribusinesses benefit from these improvements.
Also commenting, Task Team Leader for FINCLUDE, Mrs Hadija Kamayo, said, “FINCLUDE will help to mobilize approximately $1.89 billion in private capital, expand debt financing to 250,000 MSMEs—including at least 150,000 women-led businesses and 100,000 agribusinesses—and issue up to $800 million in guarantees to catalyse lending.
“By extending the average maturity of MSME loans to about three years, it will help firms invest in equipment, factories, staff, and productivity, translating finance into jobs and growth.”
By Dipo Olowookere
The local stock market firmed up by 1.13 per cent on Friday as appetite for Nigerian stocks remained strong.
Investors reacted well to the 2026 budget presentation of President Bola Tinubu to the National Assembly yesterday, especially because of the more realistic crude oil benchmark of $64 per barrel compared with the ambitious $75 per barrel for 2025. This year, prices have been between $60 and $65 per barrel.
Business Post observed profit-taking in the commodity and energy sectors as they respectively shed 0.14 per cent and 0.03 per cent.
But, bargain-hunting in the others sustained the positive run, with the consumer goods index up by 3.82 per cent.
Further, the industrial goods space appreciated by 1.46 per cent, the banking counter improved by 0.08 per cent, and the insurance industry gained 0.04 per cent.
As a result, the All-Share Index (ASI) increased by 1,694.33 points to 152,057.38 points from 150,363.05 points and the market capitalisation chalked up N1.080 trillion to finish at N96.937 trillion compared with Thursday’s closing value of N95.857 trillion.
A total of 34 shares ended on the advancers’ chart, while 24 were on the laggards’ log, representing a positive market breadth index and bullish investor sentiment.
Austin Laz gained 10.00 per cent to close at N2.42, Union Dicon also jumped 10.00 per cent to N6.60, Tantalizers increased by 9.80 per cent to N2.69, Aluminium Extrusion improved by 9.78 per cent to N12.35, and Champion Breweries grew by 9.71 per cent to N16.95.
Conversely, Sovereign Trust Insurance dipped by 7.42 per cent to N3.87, Royal Exchange lost 6.84 per cent to trade at N1.77, Omatek slipped by 6.84 per cent to N1.09, Eunisell depreciated by 5.88 per cent to N80.00, and Eterna dropped 5.63 per cent to close at N28.50.
Yesterday, traders transacted 1.5 billion units worth N21.8 billion in 25,667 deals compared with the 839.8 million units sold for N32.8 billion in 23,211 deals in the preceding session, showing a surge in the trading volume by 76.61 per cent, an uptick in the number of deals by 10.58 per cent, and a shrink in the trading value by 33.54 per cent.
By Adedapo Adesanya
Three stocks stretched the bearish run of the NASD Over-the-Counter (OTC) Securities Exchange by 1.21 per cent on Friday, December 19, with the market capitalisation giving up N26.01 billion to close at N2.121 billion compared with the N2.147 trillion it ended a day earlier, and the NASD Unlisted Security Index (NSI) dropping 43.47 points to 3,546.41 points from 3,589.88 points.
The trio of FrieslandCampina Wamco Nigeria Plc, Central Securities Clearing System (CSCS) Plc, and NASD Plc overpowered the gains printed by four other securities.
FrieslandCampina Wamco Nigeria Plc lost N6.00 to sell at N54.00 per unit versus N60.00 per unit, NASD Plc shrank by N3.50 to N58.50 per share from N55.00 per share, and CSCS Plc depleted by N2.91 to N33.87 per unit from N36.78 per unit.
On the flip side, Air Liquide Plc gained N1.01 to close at N13.00 per share versus N11.99 per share, Golden Capital Plc appreciated by 70 Kobo to N7.68 per unit from N6.98 per unit, Geo-Fluids Plc added 39 Kobo to sell at N5.50 per share versus N5.11 per share, and IPWA Plc rose by 8 Kobo to 85 Kobo per unit from 77 Kobo per unit.
During the trading day, market participants traded 1.9 million securities versus the previous day’s 30.5 million securities showing a decline of 49.3 per cent. The value of trades went down by 64.3 per cent to N80.3 million from N225.1 million, but the number of deals jumped by 32.1 per cent to 37 deals from 28 deals.
Infrastructure Credit Guarantee Company (InfraCredit) Plc finished the session as the most active stock by value on a year-to-date basis with 5.8 billion units valued at N16.4 billion, followed by Okitipupa Plc with 178.9 million units transacted for N9.5 billion, and MRS Oil Plc with 36.1 million units traded for N4.9 billion.
The most active stock by volume on a year-to-date basis was still InfraCredit Plc with 5.8 billion units worth N16.4 billion, trailed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.7 million, and Impresit Bakolori Plc with 536.9 million units traded for N524.9 million.
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