It was once beyond imagination that money could exist entirely in digital form, except in science fiction. Then it happened. Crypto began as a small experiment and turned into a global phenomenon. To some, it means freedom and dynamism. To others, it brings disorder and chaos. Yet what is most striking is that crypto has forced the world to rethink one of its most basic ideas: money.
The story began in 2009 with Bitcoin, when a mysterious person named Satoshi Nakamoto introduced a system allowing people to transfer money through a digital ledger known as the blockchain. There was no bank or intermediary. The idea spread like wildfire.
Soon, other names followed. Ethereum introduced a new way of handling contracts through programmes that activate automatically once specific conditions are met. Ripple made international transfers faster. Litecoin shortened transaction times. Stablecoins like Tether tried to keep the market steady by tying their value to real-world currencies such as the dollar. Each of these addressed different problems, but together they challenged the traditional financial order.
There is no central bank controlling cryptocurrencies. Instead, they work through thousands of computers that record and verify every transaction. Bitcoin uses a system called proof of work, where miners solve digital puzzles to validate transactions. Ethereum has shifted to proof of stake, where users lock up part of their holdings to help run the network. Once recorded, a transaction remains on the blockchain permanently.
Countries have responded in varied ways. The United States, Japan, Singapore, and several European nations have chosen regulation over prohibition. China has banned private crypto trading but created its own digital yuan to maintain control, testing it for cross-border use. The UAE has introduced blockchain-based platforms for trade verification.
In South Asia, reactions have been mostly cautious. India has one of the world’s largest crypto communities, but it has not recognised it as legal tender and taxes it heavily. Pakistan has told banks to avoid involvement. Sri Lanka and Myanmar have warned citizens about scams.
Bangladesh, along with Nepal, Algeria, and Morocco, has chosen to ban crypto entirely. The Bangladesh Bank has repeatedly warned people about the risks, citing concerns over money laundering, fraud, and market instability.
The risks are not hypothetical. Prices can soar or crash within hours. Hackers have stolen billions from online exchanges. Scammers lure people into fake platforms. Even experienced investors have lost everything to phishing attacks or forgotten passwords. While the blockchain itself is secure, the surrounding systems remain vulnerable.
Still, the technology is reshaping finance. Major banks such as HSBC and Standard Chartered are experimenting with digital versions of Letters of Credit (LCs).
Despite the advances, money is unlikely to go fully digital overnight. Traditional banks are still powerful, and global regulations continue to favour established systems. Yet pressure is mounting. Crypto has forced banks to become faster, more transparent, and more open to innovation.
For now, a clear divide persists. Developed nations are exploring cryptocurrencies through experimentation, while many developing countries are staying cautious. The concept of money has already changed through digitalisation, and whatever comes next, that transformation cannot be undone.
The writer is co-founder and CEO at Accfintax and associate director at Hoda Vasi Chowdhury and Co
