Understanding the Impact of Digital Currencies: From Private Companies to Central Banks

As global citizens are becoming more accustomed to digital payment systems, more organizations and institutions are having discussions about digital currencies. However, very few people understand the origin of this type of paperless money system. This paper provides a historical look into the development and use of cryptocurrencies by private companies and individuals. Currently, there is a movement on the part of Central Banks to become more involved in issuing their own national digital currency. The paper discusses the challenges and advantages of governments involvement in digital currencies, the impact on commercial banking systems, and the impact on global trade. In addition to drawing upon scholarly research, the authors reached out to business and economic specialists in their home institutions to garner their thoughts on this critical business issue.