Central Bank Digital Currencies (CBDCS): A New Era In Finance?

Abstract

The goal of this study is to find out how central bank digital currencies, CBDCs, could change the world financial system as more payments are made online and less cash is used. CBDCs provide a quick, safe and easy to use alternative to private cryptocurrencies and traditional payment ways. The study looks at what changing the CBDC would mean for monetary policy, the stability of the economy and the roles of central banks and private banks. It also looks at how CBDCs affect payment systems, financial equality and the legal and technological problems that come up when they are put into place. The study shows how important CBDCs are in both developed and developing countries, pointing out that they could help people who don’t have access to money and make payment systems work better. But worries about privacy, security and how they might affect standard banking have not been answered. This study shows how important it is to do more real world research on the long term benefits of CBDCs and how they can work with other crypto currencies and Fiat currencies