https://www.youtube.com/watch?v=Qrx_FnjRnfI
This review essay may contain some errors about the objective truth. Also, this review essay is completely written by myself. Therefore might have a biased opinion. Please tell me if this essay includes some errors about the objective truth. Also, I like to hear your idea about my opinion. Please leave them on the comment.
CBDC, standing for Central Bank Digital Currency is currently on the issue.
There are a lot of digital currencies in the world like Bitcoin, Edurium, and so on.
For the central banks, those digital currencies are a threat since they can't be managed in the legal and regulatory safeguard. But, since those digital currencies are becoming bigger and can't be controlled by central banks, they are trying to make their own.
Digital currencies have many benefits compared to conventional payments.
They are fast, cheap, and easy to access.
About 0.9% of the GDP is spent on the conventional payment system. Also, about 1.7 billion adults can't access conventional payment systems like using credit cards or debit cards. Furthermore, about 6.5% of Americans don't have a bank account.
If we use digital currency, we can save these social payments much easier.
There is also a geopolitical reason that makes digital currency thrive.
People's Bank of China in China already made a task force to deal with CBDC. In China, about 2 billion Yuan is spent as CBDC, and 3 million transactions are made.
Also, FinTech companies like Alibaba and Tencent are using digital currency too.
China doesn't like the position of the U.S dollar as the world's dominant financial transaction method. Therefore, they are pushing CBDC and DC with the national policies and technologies to take off the position of the U.S dollar.
For the future of the CBDC, even though there are a lot of problems, I think people's trust and the technology for that trust is the key to the thriving of CBDC and other DC.
Thank you.
Comments
Post a Comment