The history of money spans thousands of years, evolving from barter systems to precious coins, transitioning through paper currency, now advancing in the era of digital currencies and impacting how society functions. Whether it is coins, paper or digital currency, money performs three primary functions: It is a medium of exchange for buying or selling any goods or services It is a unit of account used to value goods or services It can be stored for future purposes

Drawing from city-level data spanning 2013 to 2020 in China, this study examines the economic outcomes of a digital currency pilot test policy. Through the application of a Difference-in-Differences (DID) model, the findings indicate areas promoting digital currencies are more inclined to draw businesses to establish and allocate investments into fixed assets, thereby fostering economic growth. Our empirical evidence also suggests that the robust adaptability of digital currencies across varied cultural contexts and geographical locations.

The dizzying rise of bitcoin and other cryptocurrencies has created new challenges for governments and central banks. Increasing popularity and high levels of market volatility have raised the stakes of the digital asset experiment.