Bitcoinwas invented, at least in part, to circumvent governments and national currencies.
One possibility is what’s known as a CBDC, or a central bank digital currency.
And the US isn’t alone.
But CBDCs are complex.
What is a central bank digital currency?
In short, a CBDC is just the digital form of a country’s official currency.
What factors are driving interest in CBDCs?
What has the Federal Reserve said about CBDCs?
How would a digital dollar work in practice?
That’s what the digital dollar would promise.
Still, the logistics haven’t yet been hammered out.
As a plus, this would remove fees generally associated with such payments.
As a rule, central bankers oversee the banking system, whereas private banks interact with the consumer.
Moreover, the Fed could be signaling that it’s wary about expanding its current role to these proportions.
Underbanked rates were higher among Black and Hispanic adults and those from historically excluded and low income groups.
Which countries are exploring CBDCs?
About 110 countries are at some stage of CBDC development,according to the IMF.
The names of their e-currencies are theSand Dollar,eNairaandDCash, respectively.
Soon after, Panama followed in El Salvador’s footsteps andunveiled a similar planto make bitcoin legal tender.
