Core Viewpoint - Digital currency is gaining attention and is seen as a potential replacement for paper currency, although it is unlikely to fully replace it in the short term [1][10]. Advantages of Digital Currency - Digital currency offers convenience in transactions, allowing instant completion through electronic devices without the need for cash handling [1]. - Transactions using digital currency are not limited by time or location, enabling users to conduct transactions anywhere with internet access [3]. - The security of digital currency is enhanced by advanced encryption technology, making it difficult to counterfeit and providing strong traceability for transactions [3][5]. - The cost of issuing and circulating digital currency is lower compared to paper currency, which incurs significant costs in printing, transportation, and storage [5]. Challenges to Adoption - The deep-rooted habit of using paper currency poses a challenge, especially among older generations who may be less familiar with digital transactions [7]. - Inadequate technological infrastructure, such as unstable networks and lack of advanced electronic devices, limits the use of digital currency in certain areas [8]. - The evolving technology of digital currency may face issues like system failures and cyberattacks, which could disrupt transactions [8]. - Regulatory frameworks need to be strengthened to ensure the legal and compliant operation of digital currency, protecting consumer rights and preventing market instability [8]. Future Outlook - Digital currency and paper currency are expected to coexist for a considerable time, complementing each other as technology advances and public perception shifts [10]. - The scope of digital currency usage is likely to expand, playing an increasingly important role in the financial system as regulations improve [10].