Digital Currencies: Its Features and Macroeconomic Implications

Abstract

Central banks are producing traditional paper currencies within controls and under a corresponding inventory of metals or a basket of currencies, but digital currencies are not subject to any controls of any kind which may create a fertile environment of economic instability. The purpose of this paper is to explore the macroeconomics implications of digital currencies, in addition to examine the extent to which digital currencies are currently used as a form of money, and also to determine whether digital currencies pose a material risk to monetary or financial stability. In order to achieve the objectives of this paper, the study examined the digital currencies currently in use, and it analyzed its performance, and expectations, and finally, the study provides its point of view about possible risk associated with digital currencies in use and its effect to our economy.