Dynamic Shifts in Digital Currencies: Tracing the Evolution of Digital Currencies from Bitcoin's Inception to 2023

Abstract

The rapid "development of communication technology" has had a considerable impact on financial transactions, leading to the appearance of new types of "currency." These digital currencies are intended to streamline processes, decrease time and effort expenditures, and minimize financial losses while doing away with the need for traditional financial intermediaries and central bank regulation. Despite persistent worries and hazards that remain in the minds of people participating in currency trading and stock exchanges, digital currencies have significantly impacted the global financial industry. The fundamental issue with digital currencies is the question of the legal and regulatory frameworks. Since digital currencies are decentralized, conventional regulatory frameworks might find it difficult to keep up with the consequences of this rapidly changing technology. This may result in ambiguity and uncertainty regarding the governance and regulation of digital currency.Best in Class In addition to exploring the ideas of Bitcoin and block chain technology, this study attempts to give an overview of digital currencies, including their definition, emergence, and development. The research examined the stages of development of digital currency from its inception in 2009 to the present year, 2023. It traced the evolution of digital currency over this period. The study provided into how digital currency has evolved from its early days, marked by the introduction of Bitcoin in 2009, to its current state in 2023. Index Terms— Digital currency, Block chain, Bitcoin, Advantages, Challenges and Central Bank Digital Currency.