Central Bank Digital Currency is a digital form of currency that is being developed by central banks. It is meant to allow for faster and more secure transactions, lower costs, and improved security. Central banks are currently in the process of developing their own digital currencies, but this is not the first time central banks have attempted to create a digital currency.

---

The first attempt was in the early 2000s when central banks attempted to create an electronic form of currency called e-money. Finland launched an Avant Smart card 1990 and it's can be considered the world's first CBDC.The idea behind Central Bank Digital Currency is that it will be more reliable than paper money and easier to use than electronic money.

---

As of now, there are only a few central banks that have successfully created their own digital currencies. The Bahamas is one of the first countries to have successfully created a digital currency called Sand dollars in October 2020.

---

Is your country has its own CBDC? If not, share your opinion about its presence in your country.

---

Pakistan has been considering a CBDC since the beginning of 2018. The State bank of Pakistan is the central bank of the country. In April 2019 SBP (State Bank of Pakistan) declared that it will launch CBDC by 2025.

---

The CBDC will provide an alternative to bank accounts and cash in order to provide a more efficient system for low-income Pakistanis. The CBDC will be based on blockchain technology and will allow individuals to transfer funds between each other without the need for a third party.

---

One of the best ways to reduce poverty is to help the poor. Pakistan has the high rates of poverty in the world, with over 40% of the population living below the poverty line. The CBDC is a new system that will allow people to borrow and lend money without having to pay any interest. In the future, the CBDC will be able to provide services such as insurance, loans, and savings that will help people get out of poverty. The CBDC will help to promote financial inclusion, and also help to reduce inefficiency and corruption.

---

Importance of CBDC in the financial system.

---

Source

---

According to the International Monetary Fund (IMF), Digital Currencies such as CBDCs can help to reduce the expenses, and facilitate the seamless flow of money. It can improve the financial inclusion, and provide safer access to money through the digital ways. So we can imagine the importance of the CBDC from the statement of the IMF.

---

Actually the world is changing and so is the way in which we pay for things. More and more people are turning to cashless transactions, which can be done with a credit card or through a mobile app. Credit cards have been around for a long time, but the convenience of paying for your purchase with your phone has become more popular.

---

In order to make this possible, there needs to be a reliable, safe and secure way to transfer money from one person to another. The blockchain technology is the perfect tool for this. It is a public ledger that records every transaction made on it and can be accessed by anyone. This has made it possible for people to send and receive money without having to worry about third parties or government interference.

---

What do you think if it is the need of your country or not?

---

Source

---

Pakistan's currency, the rupee, has been on a downward spiral for the past few years and has lost much of its value. The government has resorted to printing more and more money to try and stabilize the economy, but it is not working. Pakistan desperately needs to implement a CBDC (Central Bank Digital Currency) which would allow for a decentralized monetary system.

---

Advantages and Disadvantages of CBDCs.

---

Source

---

Advantages

---

• There are many advantages and disadvantages to CBDCs, but the most important is that it can replace the need for cash or other traditional methods of payment

• A central bank digital currency would allow for instantaneous transactions and be immune to cyber attacks.

• The CBDC would also make it easier for countries to issue digital currencies, so they can manage their finances in a more efficient way.

• Through CBDC we can make easy and quick national and international transactions.

---

Disadvantages

---

• Central banks have complete control on CBDC.

• There is less privacy for users in CBDC system

• The CBDC will be a form of electronic money that is not backed by anything tangible like gold or other commodities. This has the potential to cause inflation, as the value of the currency can fluctuate based on supply and demand.

• CBDCs may not be accessible to the underprivileged in developing countries.

---

Is it a global need? Give your opinion on it.

---

Source

---

With the recent economic crisis, many people are worried about the future. Many are looking for a way to make a difference in their community and in the world. The CBDC is one of the ways to make a difference. The CBDC is a way to give back to those who need it most. It is a way to have an impact on the world. It is a way to help others and change the economic system of world for the better.

---

There are many countries in the world that have their own CBDC. China, Sweden, Nigeria, Bahamas, Japan USA, Jamaica and few other countries that have their own CBDC. A CBDC is a digital currency that is not linked to any other currency and is exchanged directly with cash. These currencies are used to make purchases online or at physical stores.

---

I would like to invite:
@princesshope @luchyl @beautybb

Thanks for Reading

Have a Nice Day