NAME: ALEEM HAMZA

COURSE: MACRO ECONOMICS

APPLICANT ID: 22288
INSTRUCTOR: MISS JAWERIA
ASSIGNMENT: 2
A hypothetical case where I consider a digital currency as a medium of exchange, money is as follows:

Digital currency is a virtual form of money that is created, stored, and exchanged on the internet and
can be used to purchase goods and services. Digital currency has the potential to serve as money
because it has the same basic characteristics as traditional money such as being a medium of exchange,
a unit of account, and a store of value. The main advantage of digital currency is that it is more efficient
and secure than traditional money as it can be easily transferred and exchanged in a matter of seconds.
Additionally, digital currency is not subject to the same fluctuations in value that traditional money is,
making it a more reliable form of money.

However, there are some drawbacks to using digital currency as money. First, the value of digital
currency is not tied to any particular country, meaning it is subject to volatile price swings. Additionally,
digital currency is not accepted by all merchants and businesses, meaning it may not be a viable form of
payment. Finally, digital currency is not yet recognized as legal tender in many countries, meaning it is
not always accepted as a form of payment.

Overall, digital currency has the potential to serve as money, but it is not.