DIGITAL ECONOMY AND DIGITAL-

CURRENCY

BY
ABDULRAHMAN ABBAS
(DVM,ABU)

PRESENTED AT 25TH MSSN KEBBI

STATE IVC-2023
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 INTRODUCTION TO DIGITAL ECONOMICS

• Digital economy refer to an economics that is based

on digital computing technologies.
• Digital economy is worldwide network of economic
activities enabled by information and
communication technology (ICT).
• AKA internet economy, new Economy or web
economy.
• Digital economy is worth Three trillion dollar today.
• The entire value has been generated in the past 20
years since the launch of internet.
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 Continued….
• The digital economy is not simply about moving
business transactions from face to face to online.
• The digital economy is about transforming the many
facets of business interaction and also enabling
economic innovations.
• For example, the digital economy both is enabled by
and has given rise to the advent of new digital
currencies and payment processes (i.e digital
wallet).

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 Continued….
• Based on digital technologies (networking,
communication etc.) that provide the platform
(infrastructure) over which people and organisation
interact and collaborate to:
1. Digitalalize product
2. Digitalize financial transaction
3. Everyday objects and appliance equipped with
computing capabilities.

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 Components of digital economy
• E-Bussiness infrastructure (Hardware, softwares,
telecoms,network, human capital etc).

• E-Business ( How business is conducted, any

process that an organisation conduct through
computer mediated).

• E-Commerce (transfer of goods, for example when a

book is sold online).
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 DIGITAL CURRENCY
• Currency means money ( money is anything that is
generally accepted as a way to exchange value
between buyers and sellers).

• An object can be use as money. Example roks, salt,

rice perfume, cowry, animals, skin, shell etc.

• Value is a shared belief, meaning has value because

community believe it has value.
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 Characteristics of money
• Acceptability

• Durability

• Portabilty

• Limited supply

• Divisibility
• Fungibility 7
Evolution of money

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 Cryptocurrencies
• Internet/digital money

• They are online but protected by cryptography

• Cryptos can not be duplicated nor destroy which is distributed

by Peer-Peer network)

• They are borderless and

• Can be used anywhere

• Examples include: Bitcoin, Ethereum etc. 9

 Continued…..
Bitcoin
• Is the first cryptocurrency

• Created in 2009 by a computer scientist Satoshi

Nakamoto who is also the creator of blockchain
technology.

• The first Bitcoin transaction was in 22nd May,2009

where to 2 pizzas where bought at 10,000 Bitcoins
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 Continued….
Blockchain Technology
• Is a special type of database (use to store
information online)
• Has many servers therefore making it decentralised.
• Currently, 10,000 people are running the bitcoin
blockchain.
• All the 10,000 are connected online, this is called
peer- to-peer.
• All the computers talk to one another to ensure all
the information is same and valid.
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 Cryptocurrencies and Ponzi Schemes
• Ponzi Schemes is a type of financial fraud where
earlier investors are paid with the funds of new
investors as profit.

• Ultimately the scam operator ends up pocketing the

bulk of all collected funds.

• Examples of Ponzi schemes in Nigeria include:

MMM, MTFE, Catly, Alpha GPT

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 Characteristics of Ponzi schemes

• Members who join first must recruit new members

• The company recruits its members directly

• Having a bottleneck in the disbursement of profit

• Investment owners, social gatherings and businesses

begin to disappear or are difficult to contact

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 Characteristics cont…….
• Investment owners, social gatherings and businesses
begin to disappear or are difficult to contact.

• Promising fantastic profits with minimal risk (High

Return).

• Don not have a definite product to sell as a source

of profit

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 References
• https://www.Slideshare.net/understanding-new-digital-
economy

• History and evolution of money, sagar Rai, june

4,2020

• https://binance.com/eng/blog/community/crypto-myths
-debunked-part-4-the-myths-of-crypto-being-mainly-u
sed-by-criminals
.
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 Q&A

?
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 Thank you
For
LISTENING
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