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A binary code is used, instead of the more familiar ten digits of the Arabic numeral system, because it can be translated easily into a form that machines can use. If you have only two numbers, those numbers can be represented by on or off, they can also be represented by a north magnetic pole and a south magnetic pole, if the information is stored magnetically. The reason why 0 and 1 are used, instead of some other set of two numbers, such as 2 and 3, is just because those are the first numbers, not because their actually numerical value is relevant to how machines read numbers. We could just as easily have used any other two symbols, such as # and *.

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Q: Why only 0 and 1 are represent as binary numbers?
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