Microsoft Word - ECCU Creative Youth Competition Essay KAH

technologically savvy or even computer literate. There would need to be a huge education drive

to inform the public on the workings of this digital currency.

The confidence that people have in the safety of their money is largely linked to being

able to see it and feel it right in front of them. When money moves to cyberspace, it is no longer

tangible and is now susceptible to hacking, virus codes, phishing and other such digital crimes.

Digital transactions can be easily tracked and recorded raising concerns about surveillance,

privacy and identity theft. To ensure the security of the money, the infrastructure used will have

to be robust and immaculately maintained.

Paper is reliable. No equipment is needed to be able to access it. No computer or phone,

no Internet connection and most importantly, no electricity. Technology is vulnerable to glitches,

outages and mistakes.

There are also legal and regulatory implications of shifting from hard currency to

electronic money and the resultant digitised operational processes. The increased complexity of

financial transactions, sophisticated analytical models and larger volumes of data will demand

that financial regulators have greater capability in order to adequately oversee the finance sector

and accurately assess the soundness of innovative practices.

On the other hand, there are opportunities that will come with such a change. Paper

money is expensive to produce. Having decreased or no production will create less expenditure

leading to more profit. There will be no need for printing, storing and transporting cash, nor for

equipment needed for these activities.

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