IMPACTS OF DIGITAL CURRENCY ON FINANCIAL NETWORKS

The evolution of currency has seen significant advancements, which have been accelerated by the advent of the Internet. When comparing digital currency to traditional forms of money, it becomes evident that digital currency offers several distinct advantages. Cryptocurrencies, such as Bitcoin, Ethereum, and others, represent a range of potential payment methods. The current epidemic precipitated a notable increase in attention in emerging digital technologies. The appreciation of money has led to an increased focus on the study of digital currencies. The establishment of several central banks has been prompted by the launch and increasing popularity of new currencies. Consequently, banks have initiated investigations into the feasibility of developing their own forms of currency. All things are novel. Academics are credited with the origination of the term "central bank digital currency." There exists a lack of consensus about the operational mechanisms and implementation strategies for digital currency. The future is characterised by uncertainty due to the numerous and diverse possibilities it encompasses. There are evident deficiencies that require attention, along with a multitude of possible options to enhance existing systems. When building this new currency, it is important to have a comprehensive understanding of the diverse use cases and their corresponding requirements for its execution. Ultimately, the available data indicates that digital currency is now in its promising phase, as seen by ongoing research on central bank digital currency that highlights promising prospects. Theoretically, there exists the potential to provide a more efficient transactional solution compared to conventional currencies. Further investigation into digital money is warranted, since little modifications to existing currency systems have the potential to provide more effective and advantageous future resolutions.