-
Firstly, the cost of using digital cash is extremely low. Normal bank transactions require huge amounts of infrastructure. There are bank branches, tellers, clerks, electronic systems, all of which combine to make transactions possible. This infrastructure can only be used for banking transactions. On the other hand, digital cash does not warrant any special infrastructure. It can use basic services such as the internet to make the same transactions possible. Hence, the need for dedicated infrastructure is removed. This brings down the cost of transactions.
-
Long Distance Transactions
With physical cash, sending money to the other side of the world can be very expensive. This is also the case with electronic cash since intermediaries like SWIFT get involved and hence have to be paid a fee. However, digital cash can be sent around the world without too much of a hassle. The cost to send money to the next door neighbour and to a person on the other side of the world is the same in a digital cash system.