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A decade ago, “money” likely meant whatever sat in your wallet or bank account. Today, it might also include a token in a cryptocurrency wallet, a balance in a fintech app, or a line of code in a smart contract. The definition of currency is expanding rapidly, driven not by central banks, but by technology. This shift isn’t just moving from cash to digital. It’s reimagining trust, value assignment, and control of exchange systems. In this landscape, traditional fiat currencies and decentralized digital assets coexist and sometimes collide. The digitalization of fiat: where the shift began Fiat currency transformation didn’t start with crypto; it began quietly as banks and payment systems adapted to a connected world. In the 1990s, financial institutions digitized operations, replacing physical ledgers with electronic databases, enabling basic online banking. By the early 2000s, real-time gross settlement systems and interbank transfer protocols allowed faster, more efficient money movement, still within traditional financial frameworks. The rise of e-commerce accelerated these changes, pushing banks and payment providers to develop more user-friendly digital tools. Open banking regulations and APIs unlocked financial infrastructure access for third parties. It wasn’t just banks controlling money’s flow; tech companies and fintech startups could plug into the system, offering digital wallets, peer-to-peer transfers, and embedded finance. A slow-moving sector began evolving at software’s pace. Cryptocurrencies and Web3: rethinking what holds value Cryptocurrencies emerged in response to a growing mistrust in traditional financial systems, most notably in the wake of the 2008 financial crisis. Bitcoin, the first cryptocurrency, aimed to bypass centralized institutions. It introduced a radical idea: value stored and transferred securely without relying on banks, governments, or intermediaries. Unlike fiat currency, issued and regulated by central authorities, cryptocurrencies are decentralized, run on blockchain networks. No central bank sets policy, no gatekeeper approves transactions. Consensus…

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Filed under: News - @ June 17, 2025 5:26 pm