CBDC - the future of the financial world or its problem? 💰

CBDC is a digital version of the state currency (digital dollar, hryvnia, yuan...).

Let's discuss the key aspects and impact on the financial system.

Main advantages:
1. Fast and easy. The system provides faster transfers.
2. Improved monitoring. Digital assets are much easier to trace. This will affect all sectors of the economy. There is more confidence that the funds are where they should be and transparency in the financial system. Statistics and indicators will also be more accurate.
3. Fight against fraudsters. Transparency - the absence of corruption, fraud, etc.

All information on the movement of funds will be available in a blockchain or state register, which will be accessible to the regulator and some state structures - this is the most criticized because of their power. Some people are not impressed by the lack of anonymity.

Digital currency will definitely change the order of things, and it is difficult to imagine the full impact, but let's try. Such an asset can strengthen the role of the state in managing the money supply, while others will have to adapt.

If everything is so good, why is the integration taking so long?
CBDC is not a competitor to crypto, but a competitor to other instruments of our financial world, the effect of which is difficult to predict.

By integrating CBDC, there is a risk for the entire banking system, because the need for commercial banks in the usual sense will simply disappear. Banks will not be able to store such currency, reinvest it, and issue loans with it. In fact, banks will become brokers, intermediary exchanges that will be a link in the system.

On the Internet, a number of experts claimed that digital currency would help fight inflation, but this is not true. The issue of digital currency will be 1:1 to the existing one. On the contrary, without understanding the full effect on the economic machine, there is a possibility that CBDC may make the situation worse.

We recommend watching our YouTube video, where we analyze CBDC in more detail.