Your money will be digital in the future .. but will it be smart?

In light of the trend of the countries of the world towards issuing their digital currencies, many questions arise about the nature of financial transactions and their ease in the future.

In a report published by “Bloomberg” ( Bloomberg A round ) American writer Andy Mukherjee says that the financial system in the future will be based on the Internet, but when it comes to make payments that depend on the delivery of a product or service , or out of , the current technology will become cumbersome when it becomes all Something connected to the Internet. Read also Are digital applications safe for trading stocks?How widespread are digital currencies around the world?The issue of regulating them is an international issue … governments can no longer ignore the craze obsession China … the central bank examines the experience of the digital yuan in the 2022 Beijing Olympics

This is where “smart money” or “programmable money” comes into play, as encrypted digital chains will be calculated, operating according to a “distributed ledger” technology – such as the “ethereum” blockchain – and the terms of transferring value from one end to another will apply. .

The trend towards digital currencies

The “Sand Dollar” currency of the Bahamas was the first digital currency in the world issued by a central bank, but it will not be the only one in the coming period, and several countries are preparing to introduce their official digital currencies, including China and Sweden. For its part, Britain has formed a working group to explore the prospects for issuing the “Bitcoin” currency, and if things go normal, it is expected soon that the digital euro will be issued, and the United States, in turn, will announce its digital federal currency.

But there is a wary of this experience for more than one reason: Some central banks fear the growing impact of cryptocurrencies such as Bitcoin, while others are concerned about the growing market power of e-commerce and payment services companies, which maintain huge data from billions of transactions.

The intense competition between the United States and China for financial dominance is another reason for concern about the issuance of digital currencies. Amidst the growing debate about the future of cash transactions, the average user wonders what benefits they might reap from digital currencies.

Smart programming

The digital currencies that will be issued by the central banks will make the machines connected to each other via the Internet automatically terminate transactions without the need to ask for our approval every time, and with the issuance of official digital currencies, money will be transferred easily through banks from one account to another, but on the condition that the transfer to programmable money technology .

Without this programming, the transition to digital money would not be an easy process. Imagine that you receive a text message from the bank during a business meeting asking you to verify the correctness of your smart car payments at the gas station or parking lot. It will require another text message from the car’s computer to confirm obtaining the service in exchange for the amount paid, and the car may request permission to spend an additional $ 23 .

In fact, programmable cash would make life easier, and a team of experts from the Federal Bank of Germany is studying 9 potential use cases, including bill payments, electronic unfinished payments, international money transfers and machine-to-machine transactions. Advertising

According to the author, the smart programming of digital currencies is the best way to facilitate electronic banking transactions, and this programming will be useful on a personal level, as the money that we put in the car’s wallet will ensure that we will automatically refuel and pay parking fees.