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Will CBDC really a good solution for the global financial system?

Central Bank Digital Currency has been a talk of the town globally. Many have been thinking of the possibilities in using the said currency. They've been risking developing and piloting CBDC. But is it really the solution? Or will this just cause a problem in the global financial system? 

Let's talk about the problems that may arise if one country releases a CBDC. Fraud and hacking is one of the common problems in digital financing. And it will not go away anytime soon. Countries who wish to establish a stable cbdc must have a safe system that cannot be interfered with by hackers. Countries deciding to release their own cbdc only think for the future of their people. But is it really a risk to take? Not all people can have access when it goes online or when the cbdcs are released. This can be very difficult for those people who don't have the resources to use digital currency.

But what if CBDC has an advantage? what will it be? The most common advantage of CBDC is that it is more accessible and easy to use compared to other kinds of currencies and payment. With the pandemic happening worldwide a less personal transaction can lessen the spread of the virus. And online transactions are very convenient to everyone. CBDCs can also be the solution to the unbanked problems of individuals. This will provide easy access to individuals' funds without the limitation of bank accounts.

 

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