A Study on Popularity of Digital Currency and Digital Economy

Abstract

The research examines the increased popularity of electronic currencies as well as the radical change towards a digital economy.In the last decade, the use of cryptocurrencies like Bitcoin, Ethereum, and newly formed central bank digital currencies (CBDCs) has gained momentum, capturing extraordinary shifts in financial frameworks as well as in global economic models.The study examines the factors driving the growing adoption of digital currencies, noting their advantages including decentralization, improved security, lower transaction costs, and the capacity to enable cross-border payments.Aside from analysing the economic and technological drivers of digital currency adoption, the research looks at the general implications of digital finance on the existing banking systems, monetary policy, and regulatory regimes.The research also discusses the potential role of digital currencies in promoting financial inclusion, especially in areas with limited access to mainstream banking services.In addition, the research examines how the growth of the digital economy, typified by the convergence of digital currencies, blockchain technology, and decentralized finance (DeFi), is changing business models and consumer behaviours in various industries.The research, conducted through a mixture of surveys, case studies, and interviews with experts, cites major challenges including volatility, regulatory ambiguity, and security risks that may affect future stability and development of digital currencies. REVIEW OF LITERATUREDevlin (2019) -An Analysis of main and subsidiary credit card holding and spending.This research aims to investigate why the majority of multiple credit card holders hold a "main" card (i.e., one that is more frequently used than the others) and "subsidiary" cards (i.e., ones used less frequently or in an emergency situation) and the spending behaviour on main and subsidiary cards.