One of the most interesting developments in the digital space right now is the growing popularity of the digital currency, with the spotlight on bitcoin. PricewaterhouseCoopers published its report today claiming that digital currencies are innovating in several industries such as entertainment, media and communications.
The report outlines some of the positive effects digital currency can have on businesses and customers. Benefits include low transaction fees, no payment reversals and customers are able to remain anonymous during transactions.
Yet despite the advantages for merchants and customers, problems are still inherent in bitcoin and other digital currencies. For example the buying process can be complex and customers put themselves at risk of disputes with merchants since there are no payment reversals.
Recent bad press hasn't helped the reputation of bitcoin with one of its executives Charlie Shrem being arrested following allegations of money laundering and the digital currency's recent association with the illegal online drug market SilkRoad.
It's seems unlikely right now that digital currencies such as bitcoin will become the main currency of the digital space. However, if providers can reduce the risk for consumers and merchants, more customers and businesses might just buy into the idea. Pun intended.
Read more on PricewaterhourseCoopers' report here.