Central Bank Digital Currencies (CBDC): Accelerating Rise and Technologies
In recent years, we have seen The Rise of Central Bank Digital Currencies (CBDCs) as an emerging development in the financial sector around the world. This innovation is seen as a digital form of fiat money that bears the same value as their physical counterparts like banknotes and coins. It complements cash as a form of legal tender, issued by central banks to the general public, with the same liability as traditional money, but operates through a digital platform.
In a world where digital transactions are increasingly becoming the norm, many central banks see CBDCs as an essential innovation. As of 2021, over 80 percent of global GDP is represented by countries that are either considering, piloting, or already implementing CBDC projects. Central Bank Digital Currencies are aimed at boosting financial inclusion, improving payment systems, and helping combat money laundering. Reports have started to suggest that CBDCs might become one of the first new tools reshaping the financial system in decades.