Describe the role of digital currencies 

Digital currencies play a transformative role in modern finance and transactions:

1. Alternative Payment Method: Offer a new way to conduct transactions, often faster and with lower fees compared to traditional banking systems.
2. Decentralization: Many digital currencies, like Bitcoin, operate on decentralized networks, reducing reliance on central authorities like banks.
3. Financial Inclusion: Provide access to financial services for individuals in underbanked or underserved regions.
4. Investment Opportunities: Create new avenues for investment and speculative trading, attracting interest from investors and institutions.
5. Smart Contracts: Enable programmable transactions through smart contracts, which automate and enforce agreements on blockchain platforms like Ethereum.
6. Cross-Border Transactions: Facilitate international transactions with reduced friction and costs compared to traditional currency exchange methods.