APIEIELTS Writing: Digital Currencies and Future Money
Digital currencies and the future of money
Answers and an explanation for each question appear once you add this activity to your own library.
How to Use This Lesson
👨🏫 For the Teacher:
- • Allocate 15–20 minutes for Module 1 build-up tasks before moving to essay writing.
- • Use the embedded self-check inputs to immediately review target vocabulary and grammar structures with your class.
🎓 For the Learner:
- • Complete the vocabulary, essay phrase, and grammar drills in Module 1 first.
- • Apply these exact word forms and evaluation structures in Module 2 when writing your essay.
Digital Currencies & The Future of Money
This section helps you master the essential words, collocations, linking phrases, and grammar structures you need before writing your essay.
A Word Forms Practice
Change the Unit word in brackets into the correct grammatical form to complete each sentence.
1. Cryptocurrency markets are known for their extreme [volatile].
2. Many buyers purchase virtual coins purely for [speculation] gains rather than long-term value.
3. Excessive paper money production by central banks can be highly [inflation] and damage savings.
4. In times of economic uncertainty, the panic [hoard] of physical banknotes often increases.
5. Because distributed ledgers are decentralized, stored data cannot be easily [tamper] with.
B Unit Collocations
Select the correct Unit word to complete each common financial phrase.
1. Paper money is issued in fixed financial ___ like $10, $50, and $100.
2. Financial institutions must maintain safe digital ___ of client funds.
3. Users need a utility ___ to access specialized software applications on the network.
4. Central bank policies aim to keep annual rates of ___ low and stable.
5. All transactions are logged permanently on an immutable ___ network.
C Common Essay Linking Phrases
Fill in each blank with the most suitable phrase from the word bank. Use each phrase exactly once.
1. ___, physical currency offers transaction privacy that digital systems cannot guarantee.
____ (Type phrase...)2. ___ recent market fluctuations, online payment options continue to expand rapidly.
____ (Type phrase...)3. ___ central bank electronic money will streamline international settlement costs.
____ (Type phrase...)4. Traditional bank transfers take several days to finalize. ___, instant online transfers occur in seconds.
____ (Type phrase...)5. Financial regulators are updating national framework rules. ___, technology firms must strengthen compliance controls.
____ (Type phrase...)D Paraphrase Practice
Complete the rewritten sentence so that it has the same meaning as the original sentence.
Original: "Many financial experts believe that electronic tokens will revolutionize traditional banking."
Rewrite: Electronic tokens ___ to transform traditional banking systems completely.
____ (Type missing words...)Original: "Because price fluctuations are unpredictable, many cautious investors avoid virtual assets."
Rewrite: Due to extreme ___, cautious investors tend to steer clear of virtual assets.
____ (Type missing words...)Original: "Governments cannot easily alter transaction records stored on a decentralized ledger."
Rewrite: Transaction records stored on a decentralized ledger are virtually impossible for governments to ___.
____ (Type missing words...)E Grammar Recap: Evaluation Verbs with "as"
Learn how to express strong viewpoints using evaluation verbs before testing your understanding.
Why this works
We use evaluation verbs followed by "as" to show how people judge or describe a topic.
Active Pattern:
regard / see / view / treat / describe [something] as
"Some people regard digital money as the future, while others see it as a passing fashion."
Passive Pattern:
be hailed / dismissed / condemned / seen / touted as
"Cryptocurrency is often hailed as a breakthrough, yet dismissed as a gamble."
Quick Check (3 Items):
1. Decentralized electronic money is frequently ___ as a major breakthrough in global payments.
2. Many traditional economists ___ unbacked virtual assets as unpredictable financial tools.
3. Early experimental digital tokens were quickly ___ as inefficient by banking analysts.
Putting It Together: The Essay Task
Now it is time to write your full response using the vocabulary and grammar patterns you practiced in Module 1.
Writing Prompt
"Some people say that digital currencies will one day replace the money that governments issue. To what extent do you agree or disagree?"
Write at least 250 words in a formal academic essay format.
Include at least 3 sentences using evaluation verbs with as (e.g. regard as, hailed as).
Use at least 5 Unit words (e.g., blockchain, token, banknote, volatile, inflation).
🗺️ 4-Paragraph Essay Plan
Use this clear structure and starter set to organize your paragraphs before you begin writing.
"It is often argued that ..."
"A further consideration is ..."
"Admittedly, ..."
"On balance, ..."
✅ Self-Check List
Tick each item as you review your finished essay.
✍️ Essay Writing Workspace
Type your response below when you are ready.
How to Use This Model Essay
👨🏫 For the Teacher:
• Have students read the model essay aloud to analyze flow and academic tone (10–15 minutes).
• Draw attention to the highlighted evaluation structures and discuss how they express analytical balance.
🎓 For the Learner:
• Read through the model essay to see how the 4-paragraph outline and paragraph starters are used.
• Study the bolded evaluation verbs with as and read the pattern notes underneath each target sentence.
Model Essay
This sample demonstrates how a strong C1 learner structures a Task 2 response, integrates unit vocabulary naturally, and evaluates opposing perspectives using evaluation verbs with as.
Will Digital Currencies Replace Government-Issued Money?
It is often argued that sovereign paper currency will eventually be replaced by digital forms of payment. Although state-backed physical money still maintains widespread public confidence, I largely agree with this view, as electronic payment networks offer unprecedented efficiency for global commerce.
A further consideration is the undeniable efficiency and security offered by modern decentralized technology. Enthusiasts frequently describe blockchain infrastructure as a revolutionary framework for record-keeping because distributed ledgers cannot easily be tampered with.
describe [something] as [noun phrase] — active pattern used to highlight a positive quality or function.
Moreover, digital transfers reduce transaction costs and the need to print physical currency. In contrast, physical banknotes are increasingly viewed as inefficient for modern commercial transactions, particularly as cross-border trade demands instant settlements. As more merchants accept digital payments, traditional cash loses its role as the dominant payment method.
be viewed as [adjective] — passive pattern used to express a widespread public perception.
Admittedly, there are valid reasons why physical cash continues to endure. Financial analysts often dismiss unbacked digital tokens as highly volatile assets driven mainly by market speculation rather than intrinsic utility.
dismiss [something] as [adjective + noun] — active pattern used to introduce a critical or skeptical stance.
Additionally, central authorities express valid concerns over asset custody, data privacy, and potential inflationary risks associated with unregulated digital finance. In times of severe economic uncertainty, many citizens prefer to hoard physical banknotes in fixed denominations because tangible cash provides a reassuring sense of financial security that digital code cannot replicate.
On balance, despite legitimate concerns regarding price volatility and consumer trust, the momentum behind digital finance appears unstoppable. While sovereign governments may introduce their own official digital currencies to retain economic control, traditional paper banknotes will gradually become obsolete as digital transactions become the global norm.
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