Money and Payments
Trend Description



Digital currency is an exchange medium that replaces physical money in a digital environment. It is based on the internet to process online transactions and keep tracking of all operations in a digital ledger. Bitcoins, for example, are an extended digital currency or cryptocurrency supported by a data structure called blockchain. The blockchain is a distributed transaction ledger over a network architecture that uses cryptographic toand does not need a centralized intermediary. In this scenario, every update in the chain is being circulated to all the participant nodes. If most of the nodes validate the transaction, a new block in the chain is added. The digital currency has the same principle that physical money, so Iit can support initiatives like mobile banking or peer-to-peer transfers.



The Broader Implications of Digital Currency

The massive use of digital currencies will be the most significant and disruptive trend for exchange products and services since check or credit cards. The ability to support commercial relations using a standard and global payment method backed by a distributed ledger has an incredible potential to improve customer experience in terms of time optimization and increase access to financial services to unbanked persons. The possibility to remove man-in-the-middle democratizes the capacity of acquisition. The blockchain infrastructure will be the backbone of “Internet of Value”.