Technological changes are greatly affecting the field of finance. At one time, bitcoin was considered the craze of anarchists. However, many fund managers consider its value in the stock market to be one trillion dollars in asset class. The American stock market Wall Street is crowded with digital currency bets throughout the day. Meanwhile, many countries have started seriously considering the possibilities of launching digital currency. The Bahamas is the first country to launch a digital currency. The Central Banks of some countries are doing research on this subject. Different aspects of the new currency are being studied in the countries of America, England and European Union. China has started e-yuan as an experiment.
The Governor Coins will be the new avatar of money. They will improve the functioning of finance. But, the power of money will go from the hands of individuals to the state (government). They will open a new way of payment in other countries. The dollar option can also stand.
Small countries fear that people will resort to foreign e-currency instead of using local currency. Reduction in cash transactions is making the way for digital currency easier. More than three billion customers in the world use e-wallets and payment apps.
Some benefits are seen from the government’s digital currency. Depositors suffer from the collapse of banks in the current system. Here, bitcoin has not been accepted on a large scale. Credit cards are expensive. On the other hand, due to the guarantee of the government, the credibility of the government’s e-currency will be high. They will be cheaper to use. Government coins will reduce the operating costs of the global financial industry.
It is $ 350 per person per year in the world. With the introduction of new currency, money transactions will be easier for 1.7 billion people who do not have bank accounts. The Central Bank Digital Currency (CBDC) will be the digital form of cash. The CBDC will be equal to the money deposited in the Central Bank.
More than half a million people have downloaded the mobile app running on trial in China. They spend digital cash e-yuan from the government through it. Officials of the European Union want the digital currency euro to be launched by 2025.
On 19 April, the Bank of England and the British Treasury created the Taskforce to consider the idea of digital currency. The Central Bank-Federal Reserve in the US is also looking into this. A survey by the International Settlements Bank found that most of the central banks are conducting research or conducting tests on CBDC. Digital currency can be used in countries with twenty percent of the world population in the next three years.
Until recently, a few economists used to describe digital currency as an interesting but impractical idea. In just two years, says Jean Pierre Landau, the former deputy governor of France’s Reserve Bank-Banque de France, we have seen a dramatic change in the way people and government officials think about digital money. The second major reason is the decline in cash usage.The
Bahamas launched the first government digital currency
White shells gather on the beaches of the 700 islands of the Bahamas. They resemble the flowers of five petals. They contain small sea creatures – C. urchins. They look like silver dollars, so they are called sand dollars. Legend has it that these are the coins of the city of Atlantis, which were finished by mermaids or long ago. The Central Bank of the Bahamas has made Sand Dollar its logo. In October 2020, when the Bahamas launched the world’s first Central Bank Digital Currency (CBDC), a similar flower was created on the app. It is named Sand Dollar.