Global Money Velocity

Definition ∞ Global Money Velocity refers to the rate at which money is exchanged in an economy over a given period, reflecting how frequently a unit of currency is used to buy goods and services. In the context of digital assets, it can pertain to the transaction speed and frequency of cryptocurrencies across various global platforms. This metric indicates economic activity and liquidity. It measures how actively money circulates.
Context ∞ Discussions around global money velocity in crypto news often compare it to traditional financial systems, highlighting the potential for increased efficiency and reduced friction with digital currencies. Central banks and economists observe this metric to understand the broader economic impact and adoption rates of digital payment methods. Changes in velocity can signal shifts in economic behavior.