Sl. No. Topic Pg. No.
1 INTRODUCTION 3
2 DIGITAL CURRENCY 4
3 PAPER NOTES AND COINS 5
4 MERITS AND DEMERITS OF DIGITAL CURRENCY 6-8
5 MERITS AND DEMERITS OF PAPER CURRENCY 9-11
6 TYPES OF DIGITAL CURRENCY 12
7 CRITICISM OVER DIGITAL CURRENCY 13
8 CONCLUSION 14
9 ACKNOWLEDGEMENT 15
A currency in the most specific sense is money in any form when in use or
circulation as a medium of exchange, especially circulating banknotes and
coins. A more general definition is that a currency is a system of money in
common use, especially for people in a nation. Various currencies are
recognized as stores of value and are traded between nations in foreign
exchange units, which determine the relative values of the different
currencies.Currencies in this sense are defined by governments, and each
type has limited boundaries of acceptance.
• Digital currencies are currencies that
are only accessible with computers or
mobile phones, as they only exist in
• Since digital currencies require no
intermediary, they are often the
cheapest method to trade currencies.
• All cryptocurrencies are digital
currencies, but not all digital currencies
• Digital currencies are stable and are
traded with the markets, whereas
cryptocurrencies are traded via
consumer sentiment and psychological
triggers in price movement.
• Paper money is a country's official,
paper currency that is circulated for
the transactions involved in
acquiring goods and services.
• The printing of paper money is
typically regulated by a country's
central bank or treasury in order to
keep the flow of funds in line with
• Paper money tends to be updated
with new versions that contain
security features and attempt to
make it more difficult for
counterfeiters to create illegal
• Lower Transaction Cost
Credit card charges can be very low especially for international payments. Payments may range from 2 to 5
percent or maybe more on various transactions.
• No Chargebacks In
There are various fraud means but by using digital Currencies like Bitcoin you stop the fraud on
chargebacks. Your sale is complete when you receive your transactions from your customer.
• Faster receipts of funds
Transactions with digital means are usually much faster, completed within minutes which is much better
than other financial payments systems.
• No Inflation
This being a serious problem in various countries where some central banks inflate their currency to make
themselves spotless. By using Bitcoins r any other currency there is no inflation due to controlled quantity
limit and in other algorithms in the system.
• Better for international transactions
As we all know that making your business international will definitely increase your, you diversify to
mitigate economic fluctuations in any particular area. This will give more benefits and increase your revenue
and worldwide connections too.
• Not Traceable
As digital currencies are all about the internet which makes tracing a much difficult task to do. For instance,
criminals could use it to make payments in other countries. It’s one of the major problems for governmental
authorities. As it doesn’t have any significant effect on the users. It provides anonymity to the users which
are good part among the not so good one.
It’s one of the unique risks in digital cash as it uses the internet and we all know that how rapidly our
technology is changing and there may be some hackers who may sneak into the system. They may generate
more coins without payment to earn that cash. This will affect both the users and the banks too which may
break the digital market.
• Irreversible Payment
As there is no one to control this whole system completely so, if by mistake you do a wrong transfer then
you may only get your refund if that person wants.
And to use the digital money you need to sell the crypto.
• Losing your wallet or password
If you keep your money on your laptop or your mobile phones and somehow you lose it then you also lose
your money. You can’t even complain to the police or any other person can get it.
• It is economical. paper is much cheaper than any other metal.
• It economises the use of valuables metals, like gold and silver.
• There is no depreciation of metals in system of paper money.
• It is convenient to carry paper money from one place to the other.
• It is easy to store large amounts of papers money in a small vault.
• It can be easily replaced.
• Changes in the supply of money can be easily made in accordance with the
requirements of the economy.
• Paper money lacks public confidence because mostly it is not backed by metallic
• Paper money is less durable than digital money.
• Paper money is acceptable only within the domestic economy, and not for making
foreign exchange payments.
• Since the supply of paper money is liable to quick changes, there is lack of stability
in its value.
• Fluctuations in the value of paper money generates an atmosphere of uncertainty in
the economy which, in turn, promotes speculative activities.
• Paper money has no intrinsic value of its own. Thus, when paper money is
demonetized, its value falls to zero.
Types Of Digital Currency
• Online payment ( paytm , credit card , google pay )
Criticism Over Digital Currency
Digital currency is a peer-to-peer digital currency that promises
anonymity to the users. All a user requires is a crypto wallet and a private
passkey corresponding to each wallet that can be used to approve any
transactions. Unlike banks and other financial institutions, crypto trading
does not require the user to verify their mail address or residential
address. This anonymity has welcomed a plethora of illegitimate activities
to rely on the Bitcoin network. Cryptos have been in much use in the
modern online black market known to us as the silk road. Darknet users
rely on this anonymous peer-to-peer currency for trafficking illegal drugs,
contraband goods, and avail illegal service.
Digital currencies will help to unleash the true power of ecommerce.
Concerns about frauds online are making many online merchants
apprehensive. Since such frauds have become commonplace, many
companies stay away from accepting international payments. But with
Bitcoin and other digital currencies, transfers once made cannot be
undone. This helps to eliminate risks of fraud and enables them to sell
their goods worldwide. Moreover, it makes online shopping experiences
smoother and hassle-free. This helps smaller businesses in the developing
nations to play a bigger role in the world of ecommerce. Cryptocurrencies
will help to bring more stability to the unstable fiat currencies. They may
even phase out the entire currency exchange system and offer people
greater control over their own funds.
I would like to thank my teacher ( Biswarup Goswami ) for helping me
with this project. He allowed me to work on this project. Along with that, I
would also like to thank my school principal ( Mr. Amitabh Agnihotri )
wholeheartedly. I would also want to thank my parents and friends who
helped me in finalizing this project within a limited time frame.