By Wirba Brice Divine Ransinyuy. [email protected]
Nowadays, we are living a second created made man world in the name of digital world. Even the things we were not expecting has gone digital. When the internet came to existence, its prime objective was to enable and facilitate communication between people, between parties and between nations. But now, it has gone above that. The world is experiencing a new era of things. Notably the fact that money or currency does not limit itself online to physical. It is something revolutionizing.
Almost everything has gone digital, money, currency has become digital also, thereby explaining the terms digital currency. Just like in the real world, everything has it strengths and limitations. The same applies with the digital world and it applies same with digital currency. Now the question or problem is know whether does digital currency fulfill properties of a currency?
Yes it does. Digital currency is not more seen as a mere medium of exchange or a stored value, it actually goes beyond that. Examples of digital currency like cryptocurrency are given the same prioress in countries like Iceland and Finland. These values stipulate it is considered as their local currency. For these two countries, digital currency is seen as a financial service, thus it is measured out on an added value tax. These countries have seen the value of digital currency and as such, they turn to create their own cryptocurrencies since they have witnessed the act that digital money plays the same role of physical cash and they do using the regulation of complementary taxes.
More so, other countries that view that digital currency containing and fulfilling properties of a physical currency are Venezuela and Russia. Russia is great country and one of the world’s supreme countries. Viewing digital currency as their local currency says long about the value of digital currency. These two countries have placed digital currency on the same level like physical currency. They do so by placing digital currency with a state-backed central bank issuing digital currency more specifically cryptocurrency. Though it is at early state, there are many instances and situations where digital currency is already playing the same role of physical currency like in shops and restaurants.
Futheremore, a leading country that has taken the initiatives of circulating digital currency into their economy is Brazil. They do so under the supervision of Central bank digital currency commonly known as (CBDC). Moreover, giving more previledges to digital currency, the digital currency they often use is Bitcoin which is a type of cryptocurrency. It operates in Brazil since October 2013 under Law number: 12,865. Moreover, though it functions under this law, bitcoins is not taxable in Brazil.
As time goes on, digital currency becomes a copy of a normal currency still it fulfills at its characteristics and more so, it contains the properties of a normal currency.