Connect with us

Economy

The Advantages of Digital Currency for Digital Economists

Published

on

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.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

Economy

Market Volatility Further Suppresses Customs Street by 0.01%

Published

on

Customs Street

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited ended Friday’s trading session lower with a marginal decline of 0.01 per cent as a result of continued market volatility.

Customs Street was down during the last trading session of the week despite bargain-hunting activities in the banking and industrial goods sectors, which closed higher by 0.51 per cent and 0.01 per cent, respectively.

Business Post reports that profit-taking in the other sectors contributed to the downfall of the local bourse yesterday, with the insurance index weakening by 3.21 per cent.

Further, the energy counter went down by 0.50 per cent, and the consumer goods space depreciated by 0.24 per cent, while the commodity industry closed flat.

At the close of business, the All-Share Index (ASI) shrank by 13.37 points to 105,511.89 points from 105,525.26 points and the market capitalisation declined by N8 billion to settle at N66.147 trillion versus Thursday’s closing value of N66.155 trillion.

A total of 348.3 million shares worth N8.1 billion exchanged hands in 11,444 deals on Friday compared with the 397.1 million shares valued at N8.7 billion traded in 13,667 deals a day earlier, implying a drop in the trading volume, value, and number of deals by 12.29 per cent, 6.90 per cent, and 16.27 per cent, respectively.

The activity log was led by UBA with the sale of 26.3 million stocks for N972.3 million, United Capital traded 25.6 million shares valued at N391.5 million, FCMB exchanged 24.2 million equities worth N211.2 million, Zenith Bank transacted 22.9 million shares valued at N1.1 billion, and Fidelity Bank traded 22.6 million stocks worth N441.7 million.

Investor sentiment remained bearish yesterday after the NGX finished with 19 price gainers and 29 price losers, showing a negative market breadth index.

Lasaco Assurance and AXA Mansard were the worst-performing equities with a decline of 10.00 per cent each to sell for N2.34, and N8.64 apiece, May and Baker decreased by 8.72 per cent to N7.85, Guinea Insurance crashed by 8.70 per cent to 63 Kobo, and FTN Cocoa lost 6.43 per cent to end at N1.60.

However, Learn Africa and Livestock Feeds closed as the best-performing stocks after they gained 10.00 per cent each to quote at N3.30, and N7.92, respectively, VFD Group soared by 9.83 per cent to N57.00, Union Dicon expanded by 9.43 per cent to N5.80, and NGX Group rose by 8.17 per cent to N32.45.

Continue Reading

Economy

FrieslandCampina, Food Concepts Hurt NASD Index by 0.21%

Published

on

Food Concepts Chicken Republic

By Adedapo Adesanya

The duo of FrieslandCampina Wamco Nigeria Plc and Food Concepts Plc weakened the NASD Over-the-Counter (OTC) Securities Exchange by 0.21 per cent on Friday, April 4.

FrieslandCampina Wamco Plc lost N1.86 to close at N36.80 per unit compared with Thursday’s closing value of N38.66 per unit, and Food Concepts Plc recorded a 1 Kobo decline to end at N1.17 per share versus the preceding session’s N1.18 per share.

This dragged down the NASD Unlisted Security Index (NSI) by 6.88 points at the close of business to 3,309.46 points from the previous day’s 3,316.34 points and the market capitalisation dropped N3.97 billion to settle at N1.911 trillion, in contrast to the N1.915 trillion it ended at the preceding session.

At the unlisted securities yesterday, the volume of trades increased by 247.9 per cent to 1.3 million units from the 372,568 units transacted in the previous trading day.

Equally, the value of transactions surged by 23.2 per cent to N1.3 million from N4.1 million, but the number of deals went down by 50 per cent to 20 deals from the 40 deals recorded on Thursday.

When the bourse ended for the session, Impresit Bakolori Plc remained the most active stock by volume on a year-to-date basis with a turnover of 533.9 million units worth N520.9 million, trailed by Industrial and General Insurance (IGI) Plc with 71,2 million units worth N24.2 million, and Geo Fluids Plc with 44.2 million units sold for N89.4 million.

FrieslandCampina Wamco Nigeria Plc also remained as the most traded equity by value on a year-to-date basis with the sale of 13.8 million units valued at N534.7 million, followed by Impresit Bakolori Plc with 533.9 million units worth N520.9 million, and Afriland Properties Plc with 17.8 million units sold for N364.2 million.

Continue Reading

Economy

Naira Falls to N1,573/$1 at Official Market, N1,570/$1 at Black Market

Published

on

forex Black Market

By Adedapo Adesanya

The Naira extended its loss against the United States Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by 1.45 per cent or N22.49 on Friday, April 4.

Data from the Central Bank of Nigeria (CBN) showed that the local currency was exchanged to a Dollar at N1,573.23/$1 during the session compared with the N1,550.74/$1 it was transacted on Thursday.

Similarly, the domestic currency weakened against the Euro in the official market yesterday by N2.91 to settle at N1,725.29/€1, in contrast to the previous day’s N1,722.38/€1 but on the British Pound Sterling, it appreciated by N12.27 to sell for N2,031.02/£1 versus the preceding session’s N2,043.29/£1.

In the black market, the Nigerian currency lost N10 against the greenback on Friday to trade at N1,570/$1 compared with the N1,560/$1 it was transacted a day earlier.

The Naira’s negative outcome aligns with a wider slowdown in the global financial markets as retaliatory tariffs weaken outlook and raise possibility of a recession.

Already, Nigeria could face lower foreign exchange earnings from oil, which could be impacted heavily by tariffs.

As for the cryptocurrency market, it remained mixed after China announced retaliatory tariffs on all goods, responding to President Donald Trump’s Wednesday decision to boost the overall levy on Chinese goods to 54 per cent.

The concensus is that China’s response is not only negative for the US but it is also impacting the global outlook.

Binance Coin (BNB) shed 0.5 per cent to close at $594.69, Cardano (ADA) went down by 0.5 per cent to $0.6561, Litecoin (LTC) dropped 0.4 per cent to close at $84.09, Bitcoin (BTC) tumbled by 0.05 per cent to $83,444.13, Ethereum (ETH) declined by 0.04 per cent to $1,810.12, and the US Dollar Tether (USDT) moderated by 0.03 per cent to $0.9997.

On the flip side, Ripple (XRP) jumped by 3.1 per cent to $2.13, Solana (SOL) appreciated by 2.8 per cent to $120.63, and Dogecoin (DOGE) leapt by 2.4 per cent to $0.1690, while the US Dollar Coin (USDC) closed flat at $1.00.

Continue Reading

Trending