The Central Bank digital currency represent digitalization of money and it gives a lot of possibilities of digitalizing the fiat currency. One of the most important thing behind the Central Bank digital currency project is that it addresses the rise in digital payments and it serves as a digital counterpart to the physical cash .
What are the importance of the Central Bank digital currencies?
- Thread starter Reedex
- Start date
How are these currencies different from the eCash we have today? let's not confuse it, money is already digital mostly, CBDCs are just a tool of control, programmable and arbitrary money.
CBDC is decentralized so it is easily controlled by central banks, it is also very meaningful for society as a digital transformation. There is transparency in CBDC holders, the main purpose of CBDC is to limit cryptocurrency so that it does not interfere with the circulation of fiat money.
Rise in digital payments is a significant factor driving the need for a Central Bank digital currency. Additionally, having a Central Bank digital currency can help to ensure financial inclusion by providing access to banking services for those who may not have traditional bank accounts.
Despite the fact that many central bank digital currencies are backed up by the government, many investors may still be reluctant to invest money in these currencies. The value of these currencies may also depend a lot on the economy of the country.
Central bank digital currencies are yet to gain trust of many investors. Most people invest in altcoins, so investing in governmental asset could be worth it.
