Introduction to Digital Currencies

Cryptocurrencies are decentralized and not controlled by any central authority, while CBDCs are issued and regulated by a country's central bank and are centralized.

Stablecoins minimize price volatility by being pegged to stable assets like fiat currencies or commodities, which is significant for facilitating reliable transactions in the otherwise volatile cryptocurrency market.

Blockchain technology provides security and transparency for cryptocurrencies, enabling decentralized transactions without the need for a central authority.

<p>Virtual currencies are often restricted to specific online communities and may not be backed by real-world assets, which limits their use compared to widely accepted cryptocurrencies.</p> Signup and view all the answers

<p>Digital currencies could redefine monetary policy, enhance transaction efficiency, and challenge traditional banking systems globally.</p> Signup and view all the answers

<p>The SandDollar is true legal tender, backed by foreign reserves, while cryptocurrencies are stored-value digital assets.</p> Signup and view all the answers

<p>The wallet tiers are designed to accommodate different user needs and regulatory requirements, with limits on balances and transactions varying by tier.</p> Signup and view all the answers

<p>The system employs multi-factored authentication, high-level encryption protocols, and enhanced KYC/AML standards.</p> Signup and view all the answers

<p>Transactions are validated almost instantaneously, making them faster and more reliable for users compared to traditional payment methods.</p> Signup and view all the answers

<p>Approximately 25% of the population has registered for SandDollar wallets, with over 100,000 users.</p> Signup and view all the answers

<p>Bitcoin is primarily used as a store of value, often referred to as 'digital gold'.</p> Signup and view all the answers

<p>Ethereum supports smart contracts and decentralized applications, serving as a backbone for various DeFi services.</p> Signup and view all the answers

<p>Emerging altcoins serve various niche purposes or speculative investments and have the potential for growth.</p> Signup and view all the answers

<p>DEXs allow users to trade tokens directly on the blockchain without a centralized authority.</p> Signup and view all the answers

<p>Bitcoin dominates over 90% of the non-smart contract cryptocurrency market.</p> Signup and view all the answers

<p>Ethereum controls 50% of the smart contract market but competes with platforms like Binance Smart Chain and Solana.</p> Signup and view all the answers

<p>Users can perform activities such as borrowing, lending, and trading on DeFi platforms.</p> Signup and view all the answers

<p>Elon Musk's endorsement significantly boosted Dogecoin's popularity as a speculative investment.</p> Signup and view all the answers

<p>It allows transactions to occur anytime, enhancing efficiency in international trade and remittances.</p> Signup and view all the answers

<p>Significant price fluctuations undermine their effectiveness as a stable store of value.</p> Signup and view all the answers

<p>They can bridge gaps in access to financial services by reducing barriers like high transaction costs.</p> Signup and view all the answers

<p>It exposes the financial system to a higher risk of cyberattacks.</p> Signup and view all the answers

<p>Digital currencies can significantly reduce transaction fees, especially for cross-border payments.</p> Signup and view all the answers

<p>Successful cyberattacks can have widespread effects due to the interconnectedness of financial institutions.</p> Signup and view all the answers

<p>They enhance liquidity and operational efficiency in financial transactions.</p> Signup and view all the answers

<p>Increased digitization can lead to heightened cybersecurity concerns.</p> Signup and view all the answers

<p>CBDCs provide central banks with a direct means to influence the money supply and interest rates.</p> Signup and view all the answers

<p>Digital currencies can enable instant cross-border payments, reducing transaction costs and enhancing liquidity.</p> Signup and view all the answers

<p>Regulatory uncertainties pose a significant challenge for the integration of digital currencies.</p> Signup and view all the answers

<p>Digital currencies can provide access to financial services for unbanked populations, promoting inclusivity.</p> Signup and view all the answers

<p>The simplification of payment processes associated with digital currencies can significantly lower transaction fees.</p> Signup and view all the answers

<p>The evolution of digital currencies may lead to new financial products tailored for international markets.</p> Signup and view all the answers

<p>Digital currencies improve transmission mechanisms, allowing for more precise control over monetary policy.</p> Signup and view all the answers

<p>Market volatility can undermine trust in digital currencies, affecting their acceptance and stability.</p> Signup and view all the answers