The Role of Information Technology in Enhancing the Security of Digital Currencies and Its Impact on Banking Systems

Abstract

This article explores the role of information technology (IT) in promoting the security of digital currencies and its impact on banking systems. The purpose of the study is to present a clear understanding of how technology plays a significant role in enhancing security when conducting transactions using digital currencies. In addition, we will discuss the impact of the rapid development of digital currency in the IT system on banking systems based on generally accepted traditional currency. The method used in this research is the study of literature using analysis methods and then discussing them systematically in an effort to present the results of the research and what has been achieved. The results of the study found that electronic business transactions will continue to grow, so it will not rule out the existence of digital currency. The rapid development of digital currency requires the banking system to immediately respond technologically. In addition to maintaining a system that is secure from fraud, a system that is also able to verify the use and authenticity of digital currency must be prepared. Verification, as in general use, is according to Digital Signature Encryption. Thus, the interaction between the banking system and digital currencies will continue, and it can be said that the existence of the banking industry that supports the use of digital currency will become the landing of both. The use of digital cash is a subset of electronic commerce. With the development of digital cash, several studies regarding the performance of digital cash in digital transactions were also reviewed. The development of technology-based transactions, especially electronic transactions, is increasingly in line with the development of digital cash, which is carried out through electronic commerce.