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.
Economy
Geo-Fluids, Afriland Properties Lift NASD Bourse by 0.13%
By Adedapo Adesanya
The duo of Geo-Fluids Plc and Afriland Properties Plc propelled the NASD Over-the-Counter (OTC) Securities Exchange up 0.13 per cent on Friday, January 10.
Investors gained N1.4 billion during the trading session after the market capitalisation of the bourse ended at N1.053 trillion compared with the previous day’s N1.052 trillion, and the NASD Unlisted Security Index (NSI) increased at the close of business by 4.07 points to wrap the session at 3,073.93 points compared with 3,069.86 points recorded at the previous session.
Geo-Fluids added 25 Kobo to its value to close at N4.85 per unit compared with the previous session’s N4.60 per unit, and Afriland Properties Plc gained 24 Kobo to close at N16.25 per share versus Thursday’s closing price of N16.01 per share.
There was a 35.4 per cent fall in the volume of securities traded in the session as investors exchanged 4.3 million units compared to 6.6 million units traded in the preceding session, the value of shares traded yesterday went down by 37.4 per cent to N17.2 million from the N27.5 million recorded a day earlier, and the number of deals decreased by 47.2 per cent to 19 deals from the 36 deals recorded in the preceding day.
FrieslandCampina Wamco Nigeria Plc remained the most active stock by value (year-to-date) with 1.9 million units worth N74.2 million, followed by 11 Plc with 12,963 units valued at N3.2 million, and Industrial and General Insurance (IGI )Plc with 10.7 million units sold for N2.1 million.
IGI Plc closed the day as the most active stock by volume (year-to-date) with 10.6 million units sold for N2.1 million, trailed by FrieslandCampina Wamco Nigeria Plc with 1.9 million units valued at N74.2 million, and Acorn Petroleum Plc with 1.2 million units worth N1.9 million.
Economy
Naira Depreciates to N1,543/$1 at Official Market
By Adedapo Adesanya
The Naira witnessed a depreciation on the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, January 10.
According to data from the FMDQ Exchange, the local currency weakened against the greenback yesterday by 0.12 per cent or N1.80 to sell for N1,543.03/$1 compared with the preceding day’s N1,541.23/$1.
The pressure on the domestic currency came as the access granted to the Bureaux de Change (BDC) operators by the Central Bank of Nigeria (CBN) to purchase FX from the official market through the Electronic Foreign Exchange Matching System (EFEMS) platform prepares to end next week, precisely on January 19.
The CBN had given a 42-day window to the operators to access the platform to help stabilise the Naira in December, and this expires next week.
On Friday, the Nigerian currency tumbled against the Pound Sterling in the official market by N30.78 to sell for N1,889.29/£1 compared with the previous day’s N1,858.51/£1, but gained N5.48 against the Euro to finish at N1,583.81/€1, in contrast to Thursday’s rate of N1,589.29/€1.
As for the parallel market, the Nigerian Naira remained stable against the US Dollar during the trading session at N1,650/$1, according to data obtained by Business Post.
In the cryptocurrency market, it was bearish as the US economy added 256,000 jobs last month, the Bureau of Labor Statistics reported on Friday, topping forecasts for 160,000 and up from 212,000 in November (revised from an originally reported 227,000).
However, the readings came after a number of recent economic reports triggered a broad-market pullback across asset classes such as crypto as investors quickly scaled back the idea of a continued series of Federal Reserve rate cuts in 2025.
Cardano (ADA) fell by 3.6 per cent to trade at $0.921, Solana (SOL) slumped by 2.8 per cent to $185.93, Ethereum (ETH) depreciated by 1.4 per cent to $3,233.27, Litecoin (LTC) lost 1.3 per cent to finish at $103.62, Dogecoin (DOGE) shed 0.5 per cent to sell at $0.3315, Bitcoin (BTC), waned by 0.2 per cent to $94,154.43, and Binance Coin (BNB) went south by 0.1 per cent to $693.30.
On the flip side, Ripple (XRP) jumped by 1.5 per cent to settle at $2.34, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) sold flat at $1.00 each.
Economy
Customs Street Crumbles by 0.08% as Profit-Takers Take Charge
By Dipo Olowookere
Profit-takers took control of Customs Street on Friday, plunging it by 0.08 per cent at the close of trading activities.
The sell-offs were across all the key sectors of the Nigerian Exchange (NGX) Limited on last trading session of the week.
The insurance space went down by 1.53 per cent, the banking index depreciated by 0.41 per cent, the consumer goods sector weakened by 0.16 per cent, and the energy counter slumped by 0.08 per cent, while the industrial goods sector closed flat.
At the close of business, the All-Share Index (ASI) tumbled by 79.68 points to 105,451.06 points from 105,530.74 points and the market capitalisation retreated by N48 billion to N64.303 trillion from N64.351 trillion.
Yesterday, investors traded 1.5 billion shares worth N19.4 billion in 12,877 deals compared with the 489.5 million shares worth N13.1 billion transacted in 13,010 deals in the preceding day, indicating a decline in the number of deals by 1.02 deals and a rise in the trading volume and value by 203.14 per cent and 48.09 per cent, respectively.
Wema Bank was the busiest stock with 976.2 million units valued at N9.8 billion, Tantalizers traded 53.0 million units worth 129.6 million, Universal Insurance sold 34.8 million units for N26.8 million, Access Holdings exchanged 33.9 million units valued at N843.8 million, and Nigerian Breweries traded 27.3 million units worth N873.3 million.
The heaviest loss was suffered by Sunu Assurances with a decline of 9.99 per cent to trade at N7.30, Eunisell shed 9.96 per cent to N17.35, SAHCO crumbled by 9.87 per cent to N30.15, DAAR Communications plunged by 9.28 per cent to 88 Kobo, and Sovereign Trust Insurance went down by 7.04 per cent to N1.32.
On the flip side, C&I Leasing gained 10.00 per cent to close at N4.51, Honeywell Flour appreciated by 9.99 per cent to N10.02, Trans Nationwide Express jumped by 9.89 per cent to N2.00, RT Briscoe rose by 9.83 per cent to N2.57, and Secure Electronic Technology grew by 9.46 per cent to 81 Kobo.
Business Post reports that the bourse ended with 33 price gainers and 25 price losers, indicating a positive market breadth index and strong investor sentiment.
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