Digital currencies and their potential to replace traditional banking systems have become increasingly prevalent topics in IELTS Writing Task 2 examinations. Based on recent test reports and analysis from major IELTS preparation centers, this theme has appeared multiple times in various forms since 2019, particularly in questions about technological advancement and economic changes. Let’s explore one of the most representative questions from recent tests.
Task Analysis and Sample Question
Some people believe that digital currencies will eventually replace traditional banking systems. To what extent do you agree or disagree with this statement?
This question requires candidates to evaluate the future role of digital currencies in relation to conventional banking systems. It’s a perfect opportunity to demonstrate understanding of modern financial technology trends while showcasing analytical writing skills.
Digital currencies and traditional banking systems comparison infographic
Band 8.0 Sample Essay
Digital currencies have gained significant momentum in recent years, leading many to predict they will supersede conventional banking systems. While I partially agree with this viewpoint, I believe digital currencies will complement rather than completely replace traditional banking.
Digital currencies offer several compelling advantages that could drive widespread adoption. Firstly, they enable instant how digital currencies simplify international payments without intermediary fees, making them particularly attractive for cross-border transactions. Additionally, blockchain technology provides enhanced security and transparency, reducing the risk of fraud and manipulation that sometimes occurs in traditional banking systems.
However, traditional banking institutions possess certain strengths that digital currencies cannot easily replicate. Banks provide essential services such as financial advice, loans, and investment products that require human expertise and judgment. Moreover, how cryptocurrency challenges traditional financial systems reveals that regulatory frameworks and consumer protection measures are still evolving, making many people hesitant to completely abandon conventional banking.
Looking ahead, the most likely scenario is a hybrid system where digital currencies and traditional banking coexist and complement each other. Banks are already adapting by incorporating blockchain technology and developing their own digital currency solutions, while maintaining their core services. This evolution suggests that how e-commerce impacts traditional financial markets will lead to innovation rather than replacement.
In conclusion, while digital currencies will undoubtedly transform financial services, they are more likely to integrate with and enhance traditional banking rather than replace it entirely.
The future of banking showing digital transformation
Band 6.5 Sample Essay
Many people think digital currencies will replace traditional banks in the future. I partly agree with this idea, but I think both systems will continue to exist together.
Digital currencies have some good points that make them popular. They are faster and cheaper for sending money to other countries. Also, digital currencies use special technology that makes them safe from hackers. These advantages make more people want to use them instead of normal banks.
However, traditional banks still have important functions that digital currencies cannot do. Banks help people get loans for houses and businesses. They also give advice about money and investments. Many people still trust banks more than digital currencies because banks have been around for a long time and have strict rules to follow.
I think in the future, we will see both systems working together. Banks are starting to use digital currency technology, and some digital currency companies are working with banks. This shows that both systems can help each other get better.
In conclusion, while digital currencies are becoming more important, they will probably work alongside traditional banks rather than replace them completely.
Analysis of Band Scores
Band 8.0 Essay Analysis
- Strong coherence and clear progression of ideas
- Sophisticated vocabulary: “supersede,” “compelling advantages,” “hybrid system”
- Complex sentence structures
- Well-developed arguments with specific examples
- Excellent paragraph organization
Band 6.5 Essay Analysis
- Clear but simpler structure
- Basic but accurate vocabulary
- Less sophisticated arguments
- Some repetition in ideas
- Limited use of complex sentences
Key Vocabulary to Remember
- Supersede (v) /ˌsuːpəˈsiːd/ – to replace something older or less useful
- Cryptocurrency (n) /ˌkrɪptəʊˈkʌrənsi/ – digital or virtual currency
- Blockchain (n) /ˈblɒktʃeɪn/ – decentralized digital ledger
- Integration (n) /ˌɪntɪˈɡreɪʃən/ – the process of combining things
- Intermediary (n) /ˌɪntəˈmiːdiəri/ – a person or organization that acts as a link
- Regulatory framework (n) /ˈreɡjələtɔːri ˈfreɪmwɜːk/ – system of regulations and guidelines
- Consumer protection (n) /kənˈsjuːmə prəˈtekʃən/ – laws and regulations protecting consumers
- Hybrid system (n) /ˈhaɪbrɪd ˈsɪstəm/ – system combining different elements
For practice, try writing your own essay about how how digital currency improves cross-border payments and share it in the comments section for feedback. Consider focusing on specific aspects like security, accessibility, or economic impact.
