1. Digital currency represents a decentralized form of money that is more secure, more fungible and more functional than anything we’ve seen before. Examine.

Approach:

♤ In brief explain the arguments provided by proponents of digital currencies regarding independence from a central authority and focus on peer to peer transaction. Technicalities of digital currency are not required.

♤ In second part of the answer discuss the importance of central banks and the risk of digital currencies.

♤ Accordingly conclude.