Central Bank digital currency
Assalamu Alaikum
How are you? By Allah's grace, I'm doing very well. Today, the topic I want to discuss is Central Bank digital currency.
What is digital currency? The official digital currency or digital money is a central bank digital currency or CBDC. It is completely legal. It can be issued by the central bank of any country but it will be done digitally. The notes or coins we use as a medium of exchange are stamped by the government. These money or coins are legal. In this case digital money is also legal. There will be digital transactions but not through notes or coins but totally digitally. So now the question may come, what is the reason for bringing digital currency? The reason is very simple, one is the cost of printing notes or making coins, along with some financial transaction benefits, avoid harassment, low cost of payment system.
However, digital currency is different from Bitcoin. Cryptocurrency users remain anonymous through the blockchain system. But all of these official digital currencies are controlled by central banks. The value of a note or coin is the same as the value of a digital currency. Many central banks have already launched digital currencies. Swedbank is ahead of many in this race. It is believed that the currency of the central banks of the country will be able to capture the international market in the coming days. A number of cryptocurrencies have emerged strongly in the digital medium since a long time ago. Currencies like Bitcoin, Ethereum are used by many. The main difference with these digital currencies or central bank digital currencies is that cryptocurrencies basically have no owner. Cryptocurrency is not controlled by any specific person or organization.
But the banks are controlled by the government. We can do daily essential transactions online with e-wallet. The difference between e-wallet and digital currency is that e-wallet has no value of its own. It is completely dependent on the specific currency i.e. the value of money in the international market which is also the value of the money held in the e-wallet. Similarly, the value of euro or US dollar in e-wallet is the same as that of paper euro or dollar. But digital currency will have its own price. It will not depend on the price of money.
Today's discussion concludes here. I hope you've found it interesting. Please share your thoughts on today's topic. Prayers for everyone. May everyone be well. Amen.
Good explained about Central Bank digital currency.It’s an informative post. I hope you write articles like this in the future.Thank you.
I got to know an unknown thing, I liked your article very much, thank you
Now every bank try to move on internet banking. And after some years the whole country will be cashless society.
Crypto is batter then any bank. It is decentralised. Amazing post from you.