CBDC | Digital Currency | Future | Country | Launch | 02nd August 2022 | Virtual Wire
A central bank digital currency (CBDC) takes inspiration from the stable coin but is closer to traditional currency than it is to cryptocurrency.
CBDCs are a complete redesign of money and are under active development worldwide. CBDCs will function as a means of payment and store of value. The digital currency has the potential to entirely swap the banking landscape on how we make purchases daily, and how countries interact with each other.
With the government being supervised digitally, the government will be able to monitor all payments and add other digital attributes that can have big macroeconomic impacts. Impotent to control the growth and ascendancy of cryptocurrencies, many leading central banks across the globe are working on launching their own versions of cryptocurrencies. It's a leaner, more effectual of issuing currency both locally and overseas, which means that the international monetary system dominated by the US might start to change.
The Government pondered on if a currency created by a company is across the board, powerful and could challenge government control of money. To answer, governments accelerated exploration of whether they can incorporate similar technologies into their national payment systems. CBDC is an ideal option for amplifying the coherence of payment processes and can be used colossally. It is hugely lucrative, exclusively for developed economies where economic activities occur on a large scale, and high cash use will lead to increased tax evasion cases. With CBDC in use, there is no need to maintain the inflation buffer.
International, comprising countries like Canada, the United States of America, Japan, Brazil, China, Singapore, South Korea and many more have been working to make their CBDCs a reality. Ever since the surfacing of cryptocurrency began, governments worldwide have tried their best to remain attentive for copious reasons. Since there is no government control over them, Central Banks feel that cryptocurrency could menace their mastery and hence, strain stable coin their management. CBDC bestows better latitude to central banks to interact with citizens. All countries will take part in this combat, and we might possibly come on the scene where each country will have its own CBDC.