Introduction

Several cryptocurrencies are now being used in the world such as Bitcoin, Ethereum, and now the central bank digital currencies (CBDCs). Since they are getting popular, these currencies are changing the ways in which transactions are effected, affecting fiscal and monetary policies, generating innovative chances and threats in the global environment.

Rise of Digital Currencies
The start of a new type of money can be traced back to 2009 with the launching of Bitcoin. Since then, thousands of cryptocurrencies have come onto the trading scene providing a decentralised means to fiat money. Some trends that have influenced the digital currencies include stablecoins, central bank digital currencies and block chain technology that placed the currencies in our day-to-day financial discussions.

Impact on Global Transactions
It has been recently observed that traditional cross-border payments are undergoing a change through the dint of digital currencies. Current banking systems have high charges and processing durations while on the other hand digital currencies have near real time processing functions with no go-betweens. This is particularly of great significance to the developing economies that experience difficulties in availing international banking facilities.

Redefining Financial Inclusion
Digital currencies are a redeeming feature to the under banked population. World Bank has stated that the number of unbanked adults around the global stands at 1.7 billion. Social participation can be achieved by using a smartphone or a computer and the internet to perform transactions and other activities that make the world global through the use of wallets as well as other cryptocurrencies, which helps expand financial inclusion.